ANNUAL REPORT 2016 (pdf 20 mb)
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General Disclosures

GRI Standard Disclosure URL Omission External assurance Principles of UN Global Compact
GRI 102: General Disclosures 2016
Organizational profile
102-1 Name of the organization Industria de Diseño Textil, S.A. Yes
102-2 Activities, brands, products, and services Retail formats Yes
102-3 Location of headquarters Avenida de la Diputación s/n Edificio Inditex, Arteixo, A Coruña, España Yes
102-4 Location of operations Commercial presence Annex I. Income statement: FY2016 quarterly results Annex II. Stores by concept and market as at 31 January 2017 Annex III. Markets and concepts with online sales Yes
102-5 Ownership and legal form 1. Ownership structure Yes
102-6 Markets served Commercial presence Annex I. Income statement: FY2016 quarterly results Annex II. Stores by concept and market as at 31 January 2017 Annex III. Markets and concepts with online sales Yes
102-7 Scale of the organization Main indicators Sustainability indicators 3. Environmental indicators Yes
102-8 Information on employees and other workers People 2. Attracting, developing and promoting talent Yes
102-9 Supply chain Sustainable management of the supply chain 1. Traceability of the supply chain 3. Strategic Plan 2014-2018. 2016 Review Sustainability indicators Yes
102-10 Significant changes to the organization and its supply chain 1. Ownership structure Consolidated directors’ report Yes
102-11 Precautionary Principle or approach Systems for control of risks Yes
102-12 External initiatives Contribution to sustainable development Sustainable management of the supply chain 3. Sustainable management 4. Collaboration with international initiatives and organizations Yes
102-13 Membership of associations 2. Supply chain programmes: workers at the centre 3. Strategic Plan 2014-2018. 2016 Review 3. Sustainable management 4. Collaboration with international initiatives and organizations Yes
Strategy
102-14 Statement from senior decision-maker Letter from the Chairman Yes
102-15 Key impacts, risks, and opportunities Systems for control of risks Yes
Ethics and integrity
102-16 Values, principles, standards, and norms of behavior Contribution to sustainable development Towards a circular economy 9. Code of conduct and responsible practices and the committee of ethics Consolidated directors’ report Issues related to sustainability and personnel Code of Conduct and Responsible Practices:
www.inditex.com/en/how-we-do-business/right-to-wear 		Yes
102-17 Mechanisms for advice and concerns about ethics 9. Code of conduct and responsible practices and the committee of ethics ICFR Yes
Governance
102-18 Governance structure 2. General meeting of shareholders 3. Board of directors 4. Board of directors’ committees Yes
102-19 Delegating authority 4. Board of directors’ committees 9. Code of conduct and responsible practices and the committee of ethics Yes
102-20 Executive-level responsibility for economic, environmental, and social topics 4. Board of directors’ committees Yes
102-21 Consulting stakeholders on economic, environmental, and social topics Stakeholder relations Yes
102-22 Composition of the highest governance body and its committees 3. Board of directors Yes
102-23 Chair of the highest governance body 3. Board of directors Yes
102-24 Nominating and selecting the highest governance body 3. Board of directors 4. Board of directors’ committees Yes
102-25 Conflicts of interest 7. Related-party transactions and situations of conflict of interest Yes
102-26 Role of highest governance body in setting purpose, values, and strategy 3. Board of directors Systems for control of risks Additional information available on the Inditex website. Our principles and Sustainable management: www.inditex.com/en/how-we-do-business/right-to-wear Yes
102-27 Collective knowledge of highest governance body 3. Board of directors Yes
102-28 Evaluating the highest governance body’s performance 3. Board of directors Yes
102-29 Identifying and managing economic, environmental, and social impacts Stakeholder relations 2. General meeting of shareholders Consolidated directors’ report Principales riesgos e incertidumbres Systems for control of risks Corporate bodies responsible for drawing up and enforcing the risks management systems. Yes
102-30 Effectiveness of risk management processes Systems for control of risks Corporate bodies responsible for drawing up and enforcing the risks management systems Yes
102-31 Review of economic, environmental, and social topics 3. Board of directors Yes
102-32 Highest governance body’s role in sustainability reporting The Board of Directors is the body in charge of reviewing and approving the Annual Report Yes
102-33 Communicating critical concerns Stakeholder relations 4. Board of directors’ committees Yes
102-34 Nature and total number of critical concerns 4. Board of directors’ committees Yes
102-35 Remuneration policies 5. Remunerations For more information please consult the Annual Report on Remuneration of Directors (sections A.1.1., A.1.2., A.1.3. and A.1.4.) available at www.inditex.com/en/investors/corporate-governance/report-on-remuneration-of-directors Yes
102-36 Process for determining remuneration 4. Board of directors’ committees 5. Remunerations For more information please consult the Annual Report on Remuneration of Directors (sections A.1.1., A.1.2. and A.1.3.) available at www.inditex.com/en/investors/corporate-governance/report-on-remuneration-of-directors Yes
102-37 Stakeholders’ involvement in remuneration 4. Board of directors’ committees For more information please consult the Annual Report on Remuneration of Directors (sections A.1.3., A.3 and D3) available at www.inditex.com/en/investors/corporate-governance/report-on-remuneration-of-directors Yes
102-38 Annual total compensation ratio 3. Quality employment 5. Remunerations Yes
102-39 Percentage increase in annual total compensation ratio 3. Quality employment 5. Remunerations Yes
Stakeholder engagement
102-40 List of stakeholder groups Stakeholder relations Yes
102-41 Collective bargaining agreements 70% of Inditex employees are covered by a collective agreement (there were no significant changes to this indicator on a country level from 2014). Yes
102-42 Identifying and selecting stakeholders Stakeholder relations Inditex performs a detailed analysis of its stakeholders with the aim of identifying the impact of its activities on stakeholders and developing a strategy aimed at attaining sustainability in its processes. Yes
102-43 Approach to stakeholder engagement Stakeholder relations 1. Traceability of the supply chain 2. Supply chain programmes: workers at the centre 2. General meeting of shareholders Balance of material issues Yes
102-44 Key topics and concerns raised Stakeholder relations Materiality analysis Balance of material issues Yes
Reporting practice
102-45 Entities included in the consolidated financial statements Appendix I - Composition of the Inditex Group Yes
102-46 Defining report content and topic Boundaries Portada Materiality analysis GRI Content Index The contents of the Annual Report are defined based on the materiality analysis. This analysis takes into account the different stages of Inditex’s value chain in order to identify the most relevant internal and external aspects. The Material Aspects identified within the organization by means of this focus are also material for all entities that form part of the Inditex Group. Yes
102-47 List of material topics Balance of material issues Yes
102-48 Restatements of information There were no significant changes that led to a redrafting of the information. The details of any changes in information with a timescale or organizational scope different to that of previous years are described along with the data in question Yes
102-49 Changes in reporting Balance of material issues There were no significant changes in the list of material issues and their boudaries. Yes
102-50 Reporting period 6. Notes to the consolidated annual accounts of the inditex group at 31 january 2017 The Annual Report reflects the Inditex Group’s economic, social and environmental performance in the year 2016, which extends from 1 February 2016 to 31 January 2017. Yes
102-51 Date of most recent report Jun-16 Yes
102-52 Reporting cycle 6. Notes to the consolidated annual accounts of the inditex group at 31 january 2017 Yes
102-53 Contact point for questions regarding the report Contact Yes
102-54 Claims of reporting in accordance with the GRI Standards This report has been prepared in accordance with the GRI Standards: Comprehensive option. Yes
102-55 GRI content index General Disclosures Yes
102-56 External assurance GRI Content verification Yes
Material topics
LABOUR PRACTICES (GRI 401: Employment 2016; GRI 402: Labor/ management relations2016; GRI 403: Occupational health and safety2016; GRI 405: Diversity and Equal Opportunity 2016; GRI 406: Non-discrimination 2016; GRI 407: Freedom of Association and Collective Bargaining 2016)
GRI 103: Management Approach 2016
103-1 Explanation of the material topic and its Boundary People Balance of material issues Yes
103-2 The management approach and its components People 1. Equality and diversity 3. Quality employment Yes
103-3 Evaluation of the management approach Stakeholder relations 1. Equality and diversity ICFR GRI Content verification Yes
GRI 401: Employment 2016
401-1 New employee hires and employee turnover During 2016, the turnover of the Inditex Group, including voluntary casualties, was 36.6% in women and 13.4 in the case of men. Regarding the turnover by age, 44.7% were aged under 30, 4.9% were aged 30 to 45 and 0,1 were over 45. Data on the total number and rate of new employee hires, as well as turnover rate by region, are not available. Inditex is presently working on improving its systems to report these data in 2018. Yes Principle 6
401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees 3. Quality employment The Group provides the same social benefits for temporary workers as to part- and full-time employees. Yes
401-3 Parental leave 1. Equality and diversity Total number of employees who have returned to work after completing parental leave and who were still employed 12 months after returning to work and the retention rate are not available. Inditex is working on improving its systems to report this data in 2018. Yes Principle 6
GRI 402: Labor/Management Relations 2016
402-1 Minimum notice periods regarding operational changes The collective agreements in force do not set out a minimum period for the formal notification of any organizational changes that take place within Inditex. However, when relevant events take place, prior notice is given in line with the provisions of the law in force (art. 41 of the Workers’ Statute). Yes Principle 3
GRI 403: Occupational Health and Safety 2016
403-1 Workers representation in formal joint management–worker health and safety committees The existing committees represent all workers on the same level (management and employees) and all agreements are confirmed by management. Yes
403-2 Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities 3. Quality employment Breakdown according to gender is not available. Inditex is working to improve its systems in order to report this data by 2018. Yes
403-3 Workers with high incidence or high risk of diseases related to their occupation In general, no workers were identified as being involved in activities with a high accident rate or high risk of specific diseases. Yes
403-4 Health and safety topics covered in formal agreements with trade unions All committees have reached agreements related to worker health and safety. During the period object of the Annual Report Inditex had reached agreements in force on an international and national scale with trade unions which covered aspects such as personal protective equipment, periodic inspections, training and education, complaints mechanisms, and so on. Yes
Diversity of governance bodies and employees
405-1 Diversidad en órganos de gobierno y empleados People 2. Attracting, developing and promoting talent 3. Board of directors Breakdown according to gender is not available. Inditex is working on improving its systems in order to report this data by 2018. Yes Principle 6
405-2 Ratio of basic salary and remuneration of women to men Not available. Inditex is working on improving its systems in order to report these data by 2018. Yes Principle 6
GRI 406: Non-discrimination 2016
406-1 Incidents of discrimination and corrective actions taken 3. Strategic Plan 2014-2018. 2016 Review No incidents of discrimination were recorded among Inditex Group employees during 2016. Yes Principle 6
GRI 407: Freedom of Association and Collective Bargaining 2016
407-1 Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk 3. Strategic Plan 2014-2018. 2016 Review Inditex’s Code of Conduct for Manufacturers and Suppliers Compliance Programme assesses the level of compliance with worker freedom of association, and is applicable to all of the Group’s operations and suppliers. Yes Principle 3
Attracting and retaining talent
GRI 103: Management Approach 2016
103-1 Explanation of the material topic and its Boundary 2. Attracting, developing and promoting talent Balance of material issues Yes
103-2 The management approach and its components 2. Attracting, developing and promoting talent Yes
103-3 Evaluation of the management approach Stakeholder relations ICFR GRI Content verification Yes
Developing human capital (GRI 404: Training and education 2016)
GRI 103: Management Approach 2016
103-1 Explanation of the material topic and its Boundary 2. Attracting, developing and promoting talent Balance of material issues Yes
103-2 The management approach and its components 2. Attracting, developing and promoting talent Yes
103-3 Evaluation of the management approach 2. Attracting, developing and promoting talent ICFR GRI Content verification Yes
GRI 404: Training and Education 2016
404-1 Average hours of training per year per employee 10.34 hours/ employee Breakdown according to gender and employee type not available. Inditex is working to improve its systems in order to report these data by 2018. Yes Principle 6
404-2 Programs for upgrading employee skills and transition assistance programs 2. Attracting, developing and promoting talent 2. Supply chain programmes: workers at the centre 96% of the Group’s employees are less than 45 years olds, meaning that the Group is not facing the need to develop programmes to assist employees at the end of their professional careers in the near future. Yes
404-3 Percentage of employees receiving regular performance and career development reviews 3. Board of directors 4. Board of directors’ committees Breakdown according to gender and employee type not available. Inditex is working to improve its systems in order to report these data by 2018. Yes Principle 6
Health and safety at suppliers and manufacturers (GRI 414: Supplier social assessment 2016)
GRI 103: Management Approach 2016
103-1 Explanation of the material topic and its Boundary 2. Supply chain programmes: workers at the centre Balance of material issues Yes
103-2 The management approach and its components 2. Supply chain programmes: workers at the centre Yes
103-3 Evaluation of the management approach 3. Strategic Plan 2014-2018. 2016 Review ICFR GRI Content verification Yes
GRI 414: Supplier Social Assessment 2016
414-1 New suppliers that were screened using social criteria 3. Strategic Plan 2014-2018. 2016 Review 1. Sustainable management of the supply chain Yes
414-2 Negative social impacts in the supply chain and actions taken 3. Strategic Plan 2014-2018. 2016 Review 1. Sustainable management of the supply chain Yes
Human Rights and industrial relations in the supply chain
(GRI 408: Child labor2016; GRI 409: Forced or compulsory labor 2016; GRI 412: Human Rights Assessment 2016)
GRI 103: Management Approach 2016
103-1 Explanation of the material topic and its Boundary Sustainable management of the supply chain Balance of material issues Yes
103-2 The management approach and its components Sustainable management of the supply chain 2. Supply chain programmes: workers at the centre Yes
103-3 Evaluation of the management approach 3. Strategic Plan 2014-2018. 2016 Review ICFR GRI Content verification Yes
GRI 408: Child Labor 2016
408-1 Operations and suppliers at significant risk for incidents of child labor 3. Strategic Plan 2014-2018. 2016 Review Inditex’s Code of Conduct for Manufacturers and Suppliers Compliance Programme assesses the level of compliance with prohibition of child labour, and is applicable to all of the Group’s operations and suppliers. Yes Principle 5
GRI 409: Forced or Compulsory Labor 2016
409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor 3. Strategic Plan 2014-2018. 2016 Review Inditex’s Code of Conduct for Manufacturers and Suppliers Compliance Programme assesses the level of compliance with prohibition of forced or compulsory labour, and is applicable to all of the Group’s operations and suppliers. Yes Principle 4
GRI 412: Human Rights Assessment 2016
412-1 Operations that have been subject to human rights reviews or impact assessments 3. Strategic Plan 2014-2018. 2016 Review Sustainability indicators 1. Sustainable management of the supply chain Yes Principle 2
412-2 Employee training on human rights policies or procedures 2. Supply chain programmes: workers at the centre Yes Principle 1
412-3 Significant investment agreements and contracts that include human rights clauses or that underwent human rights screening 3. Strategic Plan 2014-2018. 2016 Review Yes Principle 2
Traceability of the supply chain
(GRI 308: Supplier environmental assessment 2016)
GRI 103: Management Approach 2016
103-1 Explanation of the material topic and its Boundary Balance of material issues Yes
103-2 The management approach and its components 1. Traceability of the supply chain 3. Sustainable management Sustainability indicators Inditex has developed the a project of Technical Capacity Building for the Supply Chain (www.wateractionplan.com/en/web/gestion-del-agua/capacity). This project consists on the environmental evaluation of suppliers and their technical capacitation to improve their environmental performance and therefore achieve a more sustainable production and Zero Discharge in 2020. Yes
103-3 Evaluation of the management approach 3. Sustainable management GRI Content verification Yes
GRI 308: Supplier Environmental Assessment 2016
308-1 New suppliers that were screened using environmental criteria 3. Strategic Plan 2014-2018. 2016 Review 3. Sustainable management Yes Principle 8
308-2 Negative environmental impacts in the supply chain and actions taken 3. Sustainable management Yes Principle 8
Responsible purchasing practices
GRI 103: Management Approach 2016
103-1 Explanation of the material topic and its Boundary 2. Supply chain programmes: workers at the centre 2. More sustainable raw materials Balance of material issues Yes
103-2 The management approach and its components 2. Supply chain programmes: workers at the centre 2. More sustainable raw materials Yes
103-3 Evaluation of the management approach ICFR GRI Content verification Yes
Commitment to customers
GRI 103: Management Approach 2016
103-1 Explanation of the material topic and its Boundary Our customers Balance of material issues Yes
103-2 The management approach and its components Our customers Yes
103-3 Evaluation of the management approach Our customers ICFR GRI Content verification Yes
Changes in consumption habits
GRI 103: Management Approach 2016
103-1 Explanation of the material topic and its Boundary Balance of material issues Yes
103-2 The management approach and its components 2. More sustainable raw materials Yes
103-3 Evaluation of the management approach 2. More sustainable raw materials ICFR GRI Content verification Yes
NEW SALES CHANNELS
GRI 103: Management Approach 2016
103-1 Explanation of the material topic and its Boundary Our customers Balance of material issues Yes
103-2 The management approach and its components Our customers Yes
103-3 Evaluation of the management approach Our customers GRI Content verification Yes
PRODUCT QUALITY, HEALTH AND SAFETY (GRI 416: Customer health and safety 2016)
GRI 103: Management Approach 2016
103-1 Explanation of the material topic and its Boundary Commitment to the excellence of our products Balance of material issues Yes
103-2 The management approach and its components Commitment to the excellence of our products Towards a circular economy Sustainability indicators Yes
103-3 Evaluation of the management approach 3. Sustainable management GRI Content verification Yes
GRI 416: Customer Health and Safety 2016
416-1 Assessment of the health and safety impacts of product and service categories 3. Sustainable management Sustainability indicators Yes
416-2 Incidents of non-compliance concerning the health and safety impacts of products and services No significant incidents of non-compliance with standards related to the impact of products on customer health and safety were recorded in 2016. Yes
Product information and labelling (GRI 4017: Marketing and labeling 2016)
GRI 103: Management Approach 2016
103-1 Explanation of the material topic and its Boundary Balance of material issues Yes
103-2 The management approach and its components Towards a circular economy 2. More sustainable raw materials Yes
103-3 Evaluation of the management approach 2. More sustainable raw materials GRI Content verification Yes
GRI 417: Marketing and Labeling 2016
417-1 Requirements for product and service information and labeling Towards a circular economy 2. More sustainable raw materials Product health and safety standards are in general application and mandatory for the whole of the Group’s production (100%). Yes
417-2 Incidents of non-compliance concerning product and service information and labeling No significant incidents of non-compliance with standards related to product information or labelling or voluntary codes were recorded in 2016. Yes
417-3 Incidents of non-compliance concerning marketing communications No significant incidents of non-compliance with standards related to marketing communications were recorded in 2016. Yes
Eco-Design (GRI 301: Materials 2016)
GRI 103: Management Approach 2016
103-1 Explanation of the material topic and its Boundary Commitment to the excellence of our products Balance of material issues In order to offer safe, healthy and products manufactured with sustainable management of resources and processes, we begin with the first phases of the life cycle by implementing eco-design as a key tool for sustainably managing natural resources. Yes
103-2 The management approach and its components Towards a circular economy ICFR In the Code of Conduct, Inditex undertakes to minimize the environmental impact throughout the life cycle of its products. Yes
103-3 Evaluation of the management approach ICFR GRI Content verification Yes
GRI 301: Materials 2016
301-1 Materials used by weight or volume Inditex distributes the finished fashion items (clothing, footwear, accessories) and home textiles it purchases from its suppliers. Nevertheless, Inditex works hard to promote the efficient use of materials in its supply chain via the use of more sustainable fibres, packaging and distribution of its products in line with its standard, ZNormativa, and waste management by means of its Waste Reduction Plan. The packaging materials of the products put on the market are recovered at the end of their useful life for recycling by authorized managers in those countries where there are Integrated Packaging Management Systems. This information is not currently accessible. Data related to volume or weight of used materials is not available. Inditex is presently improving its systems to provide data related to this indicator in 2018. Yes Principle 7 and 8
301-2 Recycled input materials used Our customers 2. More sustainable raw materials 2. Efficient shipping: Green to Pack Yes Principle 8
301-3 Reclaimed products and their packaging materials 1. Focus on a circular economy 2. Efficient shipping: Green to Pack Yes
Managing product end-of-life and recycling systems
GRI 103: Management Approach 2016
103-1 Explanation of the material topic and its Boundary Commitment to the excellence of our products Balance of material issues Yes
103-2 The management approach and its components Towards a circular economy 1. Focus on a circular economy At Inditex we have a long-term strategy to integrate the vision of the circular economy in our business model. Within the framework of our Sustainable Strategic Plan, we work to comply with the integration of the circular economy through the target for 2020 that none of the waste from our activities ends in a dump. We promote circular systems of reuse of packaging like the one of tubes pallets, boxes, alarms and hangers, opting for recycled materials when it is possible. We also develop projects to close the product life-cycle with initiatives such as Closing the Loop to promote the closure of the cycle in the textile sector. Yes
103-3 Evaluation of the management approach GRI Content verification Yes
Animal welfare
GRI 103: Management Approach 2016
103-1 Explanation of the material topic and its Boundary Balance of material issues Inditex aims to protect, conserve and develop species richness and diversity. Inditex works by avoiding the purchase of materials that represent a risk for endangered species, animal welfare and forests. Yes
103-2 The management approach and its components 2. More sustainable raw materials The Inditex Group applies standards of responsible production to its products in relation to the use of elements of animal origin. Inditex has an Animal Welfare Policy (www.inditex.com/en/our-commitment-to-the-environment/closing-the-loop/sustainable-materials/animal-welfare) and a Biodiversity Strategy (http://www.inditex.com/en/our-commitment-to-the-environment/biodiversity) that set its management criteria along their value chain Yes
103-3 Evaluation of the management approach ICFR GRI Content verification Yes
Energy consumption and GHGs (GRI 302: Energy 2016; GRI 305: Emissions 2016)
GRI 103: Management Approach 2016
103-1 Explanation of the material topic and its Boundary Recycling and efficient use of resources Balance of material issues Yes
103-2 The management approach and its components Recycling and efficient use of resources 1. Sustainable environmental management of our facilities We have an Energy Strategy (http://www.inditex.com/en/our-commitment-to-the-environment/climate-change-and-energy) and we work to minimize our impact on climate change throughout our value chain. To do this, we optimize our logistics processes, boost efficiency in our facilities and progress in our commitment to renewable energy Yes
103-3 Evaluation of the management approach GRI Content verification Through the periodic measurement of energy consumption and GHG emission, we quantitatively record the progress made in reducing energy consumption and generating emissions, as well as the better efficiency of our facilities. Yes
GRI 302: Energy 2016
302-1 Energy consumption within the organization 3. Environmental indicators Yes Principle 7 and 8
302-2 Energy consumption outside of the organization 3. Environmental indicators Yes Principle 8
302-3 Energy intensity Sustainability indicators 3. Environmental indicators Yes Principle 8
302-4 Reduction of energy consumption 1. Sustainable environmental management of our facilities 2. Efficient shipping: Green to Pack 3. Environmental indicators Yes Principle 8 and 9
302-5 Reductions in energy requirements of products and services 1. Sustainable environmental management of our facilities 2. Efficient shipping: Green to Pack Sustainability indicators 3. Environmental indicators Yes Principle 8 and 9
GRI 305: Emissions 2016
305-1 Direct (Scope 1) GHG emissions 3. Environmental indicators Yes Principle 7 and 8
305-2 Energy indirect (Scope 2) GHG emissions 3. Environmental indicators Yes Principle 7 and 8
305-3 Other indirect (Scope 3) GHG emissions 3. Environmental indicators Yes Principle 7 and 8
305-4 GHG emissions intensity 3. Environmental indicators Yes Principle 8
305-5 Reduction of GHG emissions 3. Environmental indicators Yes Principle 8 and 9
305-6 Emissions of ozone-depleting substances (ODS) 1. Sustainable environmental management of our facilities Plans have been set up to replace air conditioning equipment in the already existing stores with the more efficient class A systems to ensure there are no gasses that are destructive to the ozone layer. Furthermore, eco efficient measures implemented in our stores resulted in significant power saving, in particular in air-conditioning, with an estimated average reduction of 40%. This implies an attendant cutting in the greenhouse gas emissions. Our goal is for all our stores to be eco efficient by 2020. Yes Principle 7 and 8
305-7 Nitrogen oxides (NOX), sulfur oxides (SOX), and other significant air emissions No relevant data on air emissions has been reported this year due to the specifications of the equipment and the frequency of revisions established according to the inforce legislation. Any particle emissions resulting from transport are generated by the transport companies themselves and not by Inditex. Nevertheless, Inditex promotes a better management and control of these emissions by means of a tool which enables such emissions to be calculated according to GHG Protocol. The Group also drafts improvement plans to reduce emissions. Yes Principle 7 and 8
Water consumption and controlling discharges (GRI 303: Water 2016; GRI 306: Effluents and Waste 2016)
GRI 103: Management Approach 2016
103-1 Explanation of the material topic and its Boundary Recycling and efficient use of resources Balance of material issues Yes
103-2 The management approach and its components Recycling and efficient use of resources 1. Sustainable environmental management of our facilities The Global Water Management Strategy (http://www.inditex.com/en/our-commitment-to-the-environment/water) constitutes a road map for the sustainable and rational management of water, working to better preserve the environmental quality of river and marine ecosystems. In addition, our commitment to reach the Zero Discharge of Unwanted Substances allows to contribute in the sustainability of the water resource. More information on the specific website: www.wateractionplan.com Yes
103-3 Evaluation of the management approach ICFR GRI Content verification Yes
GRI 303: Water 2016
303-1 Water withdrawal by source 3. Environmental indicators Yes Principle 7 and 8
303-2 Water sources significantly affected by withdrawal of water 3. Environmental indicators Water supplied to all the centres for use both in processes and for consumption comes from public, authorised supply networks with the result that Inditex has no impact on protected habitats. Yes Principle 8
303-3 Water recycled and reused 1. Sustainable environmental management of our facilities Yes Principle 8
GRI 306: Effluents and Waste 2016
306-1 Water discharge by quality and destination www.inditex.com/en/our-commitment-to-the-environment/water Yes Principle 8
306-2 Waste by type and disposal method 3. Environmental indicators None of the waste generated is disposed of through deep-well injection or stored in-situ. Yes Principle 8
306-3 Significant spills During the reporting period no significant accidental discharges were recorded. Yes Principle 8
306-4 Transport of hazardous waste Inditex does not transport, import or export any of the hazardous waste products included in the Basel Convention in any of the countries where it performs its activities. Yes Principle 8
306-5 Water bodies affected by water discharges and/or runoff 3. Sustainable management The water consumed by Inditex is discharged by means of sanitation networks, in all cases with the appropriate administrative authorization. In case of irregularities, Inditex analyses the causes and looks for pertinent solutions. Therefore, there are no water bodies or related habitats significantly affected by discharges or run-off generated by the organization. In relation to the Group’s suppliers and due to the commitment undertaken in November 2012 towards Zero Discharge of Hazardous Chemicals in 2020, Inditex works with its suppliers within its Master Plan for Water Management in the Supply Chain. In 2015, we keep working on the Capacity Building project aimed at the supply chain. In this programme, our suppliers undergo an environmental evaluation and technical training in order to improve their environmental performance. This will lead to a more sustainable production and Zero Discharge by 2020. More information is available for consultation at www.inditex.com/en/our-commitment-to-the-environment/water Yes Principle 8
Waste control and management
GRI 103: Management Approach 2016
103-1 Explanation of the material topic and its Boundary Balance of material issues Yes
103-2 The management approach and its components Towards a circular economy 1. Focus on a circular economy 2. Efficient shipping: Green to Pack 3. Environmental indicators In the framework of our Sustainable Strategic Plan, we work to comply with the integration of the circular economy through the target for 2020 that none of the waste from our activities ends up in a landfill. In addition, we have different tools, such as the Waste Minimization Plan or the Store Waste Management Manual, which allow to manage waste more efficiently in our centers. Yes
103-3 Evaluation of the management approach ICFR GRI Content verification Yes
Protecting biodiversity (GRI 304: Biodiversity 2016)
GRI 103: Management Approach 2016
103-1 Explanation of the material topic and its Boundary Balance of material issues Yes
103-2 The management approach and its components 2. More sustainable raw materials Recycling and efficient use of resources Inditex includes in its Biodiversity Policy (/www.inditex.com/en/our-commitment-to-the-environment/biodiversity) its objectives for the protection and conservation of biodiversity which has defined following the principles established in the United Nations Convention on Biological Diversity and recognizing the work of the International Union for the Conservation of Nature (IUCN). To ensure the implementation of this strategy, its principles are integrated into the master plans of each of the key areas of the business model. Yes
103-3 Evaluation of the management approach ICFR GRI Content verification Yes
GRI 304: Biodiversity 2016
304-1 Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas Not applicable. The lands owned by Inditex are not located adjacent to or within protected natural spaces or areas of high biodiversity, and therefore the Group does not generate significant impacts on biodiversity. Yes Principle 8
304-2 Significant impacts of activities, products, and services on biodiversity 2. More sustainable raw materials Yes Principle 8
304-3 Habitats protected or restored Not applicable. Inditex distributes the finished fashion items (clothing, footwear, accessories) and home textiles it purchases from its suppliers, and therefore there are no protected or restored habitats related to the company’s activity. Yes Principle 8
304-4 IUCN Red List species and national conservation list species with habitats in areas affected by operations Not applicable. Inditex distributes the finished fashion items (clothing, footwear, accessories) and home textiles it purchases from its suppliers, and therefore there are no habitats that are affected by its operations. Yes Principle 8
Socio-economic impact on the community
(GRI 201: Economic performance 2016; GRI 203: Indirect economic impacts 2016)
GRI 103: Management Approach 2016
103-1 Explanation of the material topic and its Boundary Balance of material issues Yes
103-2 The management approach and its components Improving community welfare Investment in social programmes 2016 Yes
103-3 Evaluation of the management approach Main indicators Investment in social programmes 2016 Economic and financial report Yes
GRI 201: Economic Performance 2016
201-1 Direct economic value generated and distributed 2. Investment in social programmes indicators 2016 Yes
201-2 Financial implications and other risks and opportunities due to climate change Sustainable strategy Recycling and efficient use of resources Inditex Sustainability Strategy: www.inditex.com/en/how-we-do-business/right-to-wear Despite the fact that its direct activity does not have a significant impact on climatic change, Inditex implements energy-efficient activities and measures to mitigate such a risk. Yes
201-3 Defined benefit plan obligations and other retirement plans 3. Quality employment 6. Notes to the consolidated annual accounts of the inditex group at 31 january 2017 Yes
201-4 Financial assistance received from government During this reporting period no significant government assistance was received in the form of subsidies, awards, holiday entitlements or export credit assistance. Yes
GRI 203: Indirect Economic Impacts 2016
203-1 Infrastructure investments and services supported Investment in social programmes 2016 2. Investment in social programmes indicators 2016 Yes
203-2 Significant indirect economic impacts Key programmes in 2016 Yes
Investment in the community (GRI 413: Local Communities 2016)
GRI 103: Management Approach 2016
103-1 Explanation of the material topic and its Boundary Balance of material issues Yes
103-2 The management approach and its components Improving community welfare Investment in social programmes 2016 Yes
103-3 Evaluation of the management approach Investment in social programmes 2016 Economic and financial report Yes
GRI 413: Local Communities 2016
413-1 Operations with local community engagement, impact assessments, and development programs 2. Supply chain programmes: workers at the centre Investment in social programmes 2016 Yes Principle 1
413-2 Operations with significant actual and potential negative impacts on local communities 3. Strategic Plan 2014-2018. 2016 Review 3. Sustainable management Yes Principle 1
Stakeholder engagement and dialogue
GRI 103: Management Approach 2016
103-1 Explanation of the material topic and its Boundary Balance of material issues Yes
103-2 The management approach and its components Stakeholder relations Yes
103-3 Evaluation of the management approach GRI Content verification Yes
Security and protection of data and information systems (GRI 418: Customer privacy 2016)
GRI 103: Management Approach 2016
103-1 Explanation of the material topic and its Boundary Balance of material issues Yes
103-2 The management approach and its components Our customers Yes
103-3 Evaluation of the management approach GRI Content verification Yes
GRI 418: Customer Privacy 2016
418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data During 2016, Inditex has not received through the available set channels any administrative sanction for the breach of the costumer’s privacy and personal data protection rules. Regarding significant customer complaints based on privacy legislation and received by Inditex through the appropriate available channels, those complaints related to the Fair and Accurate Credit Transactions (FACTA) must be highlighted. This Act requires retailers in the United States to limit the number of customer’s credit card digits printed on the purchase receipt to those established by law. Yes
Corporate governance (GRI 415: Public policy )
GRI 103: Management Approach 2016
103-1 Explanation of the material topic and its Boundary Balance of material issues Yes
103-2 The management approach and its components 3. Board of directors Yes
103-3 Evaluation of the management approach 3. Board of directors ICFR GRI Content verification Yes
GRI 415: Public Policy 2016
415-1 Political contributions The Code of Conduct and Responsible Practices expressly indicates that “Any relationship that the Inditex Group may have with any governments, authorities, institutions and political parties shall be based upon the principles of legality and neutrality. Contributions, whether in cash and/or in kind that might be made by the company, where applicable, to any political parties, institutions and public authorities, shall always be made in accordance with the current legislation in force and ensuring the transparency thereof; for such purposes, a previous report of the Legal Department evidencing that any such contributions are lawful, shall be required. Yes Principle 10
Transparency and tax contribution
GRI 103: Management Approach 2016
103-1 Explanation of the material topic and its Boundary Balance of material issues Yes
103-2 The management approach and its components Tax contribution in 2016 Yes
103-3 Evaluation of the management approach ICFR GRI Content verification Yes
Compliance with regulations and responsible practices
(GRI 205: Anti-corruption 2016; GRI 206: Anti-competitive Behavior 2016; GRI 307: Environmental Compliance 2016; GRI 419: Socioeconomic Compliance 2016)
GRI 103: Management Approach 2016
103-1 Explanation of the material topic and its Boundary Balance of material issues Yes
103-2 The management approach and its components 9. Code of conduct and responsible practices and the committee of ethics Yes
103-3 Evaluation of the management approach ICFR GRI Content verification Yes
GRI 205: Anti-corruption 2016
205-1 Operations assessed for risks related to corruption 3. Strategic Plan 2014-2018. 2016 Review 9. Code of conduct and responsible practices and the committee of ethics
Code of Conduct and Responsible Practices includes the prevention of all forms of corruption. This standard is applicable to 100% of the Group’s business units and is available on the Inditex website at: www.inditex.com/en/how-we-do-business/right-to-wear 		Yes Principle 10
205-2 Communication and training about anti-corruption policies and procedures 2. Supply chain programmes: workers at the centre 9. Code of conduct and responsible practices and the committee of ethics Inditex’s Code of Conduct and Responsible Practices, applicable to 100% of the Group’s employees, deals with the prevention of all forms of corruption and correct internal dissemination of the code among all employees. It is available on Inditex’s website at: www.inditex.com/en/how-we-do-business/right-to-wear Total figures and percentage of employees and board members that have received training on issues of corruption broken down according to region and employee type not available. At the time of writing Inditex was working to generate this indicator. This indicator is expect to be included by 2018. Yes Principle 10
205-3 Confirmed incidents of corruption and actions taken During 2016, Inditex has not been notified through the available channels of any corruption related incident in the organization. Yes Principle 10
GRI 206: Anti-competitive Behavior 2016
206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices During 2016, Inditex has not received through the available channels any (final) legal actions for anti-competitive behavior, anti-trust and monopoly practices. Yes
GRI 307: Environmental Compliance 2016
307-1 Non-compliance with environmental laws and regulations During 2016, Inditex has not been notified through the available channels of any significant sanction for non compliance with environmental laws and regulation. Yes Principle 8
GRI 419: Socioeconomic Compliance 2016
419-1 Non-compliance with laws and regulations in the social and economic area During 2016, Inditex has not been notified through the available channels of any significant sanction for non compliance with applicable laws and regulation. Yes
Risk management and control systems
GRI 103: Enfoque de Gestión 2016
103-1 Explanation of the material topic and its Boundary Balance of material issues Yes
103-2 The management approach and its components Systems for control of risks Yes
103-3 Evaluation of the management approach Systems for control of risks ICFR Yes
Volatility of raw material prices
GRI 103: Management Approach 2016
103-1 Explanation of the material topic and its Boundary Balance of material issues Yes
103-2 The management approach and its components Systems for control of risks Yes
103-3 Evaluation of the management approach Systems for control of risks Yes
Changes in regulation
GRI 103: Management Approach 2016
103-1 Explanation of the material topic and its Boundary Balance of material issues Yes
103-2 The management approach and its components 10. Corporate compliance Systems for control of risks Yes
103-3 Evaluation of the management approach Systems for control of risks Yes
Logistics model
GRI 103: Management Approach 2016
103-1 Explanation of the material topic and its Boundary Balance of material issues Yes
103-2 The management approach and its components 1. Sustainable environmental management of our facilities 2. Efficient shipping: Green to Pack Yes
103-3 Evaluation of the management approach GRI Content verification Yes
Expansion in new markets
GRI 103: Management Approach 2016
103-1 Explanation of the material topic and its Boundary Balance of material issues Yes
103-2 The management approach and its components Commercial presence Yes
103-3 Evaluation of the management approach GRI Content verification Yes
Exposure in mature markets
GRI 103: Management Approach 2016
103-1 Explanation of the material topic and its Boundary Balance of material issues Yes
103-2 The management approach and its components Systems for control of risks Yes
103-3 Evaluation of the management approach Systems for control of risks Yes