Balance of material issues

Material issues	GRI standards	Content	Boundary*	Implication**
PEOPLE
Labour practices	GRI 103: Management approach 2016 GRI 401: Employment 2016 GRI 402: Labour/management relations 2016 GRI 403: Occupational health and safety 2016 GRI 405: Diversity and equal opportunity 2016 GRI 406: Non-discrimination 2016 GRI 407: Freedom of association and collective bargaining 2016	103-1 to 103-3 401-1 to 401-3 402-1 403-1 to 403-4 405-1 to 405-2 406-1 407-1
Attracting and retaining talent	GRI 103: Management approach 2016 GRI 401: Employment 2016 GRI 201: Economic performance 2016	103-1 to 103-3 401-1 to 401-2 201-3
Developing human capital	GRI 103: Management approach 2016 GRI 404: Training and education 2016	103-1 to 103-3 404-1 to 404-3
SUSTAINABLE MANAGEMENT OF THE SUPPLY CHAIN
Health and safety at suppliers and manufacturers	GRI 103: Management approach 2016 GRI 403: Occupational health and safety 2016 GRI 414: Supplier social assessment 2016	103-1 to 103-3 403-1 to 403-4 414-1 to 414-2
Human Rights and industrial relations in the supply chain	GRI 103: Management approach 2016 GRI 408: Child labour 2016 GRI 409: Forced or compulsory labour 2016 GRI 412: Human rights assessment 2016	103-1 to 103-3 408-1 409-1 412-1 to 412-3
Traceability of the supply chain	GRI 102: General Disclosures 2016 GRI 103: Management approach 2016 GRI 308: Supplier environmental assessment 2016 GRI 414: Supplier social assessment 2016	102-9 103-1 to 103-3 308-1 to 308-2 414-1 to 414-2
Responsible purchasing practices	GRI 102: General Disclosures 2016 GRI 103: Management approach 2016 GRI 308: Supplier environmental assessment 2016 GRI 414: Supplier social assessment 2016	102-9 103-1 to 103-3 308-1 to 308-2 414-1 to 414-2
OUR CUSTOMERS
Commitment to customers	GRI 102: General Disclosures 2016 GRI 103: Management approach 2016	102-43 103-1 to 103-3
Changes in consumption habits	GRI 103: Management approach 2016	103-1 to 103-3
New sales channels	GRI 103: Management approach 2016	103-1 to 103-3
COMMITMENT TO THE EXCELLENCE OF OUR PRODUCTS
Product quality, health and safety	GRI 103: Management approach 2016 GRI 416: Customer health and safety 2016	103-1 to 103-3 416-1 to 416-2
Product information and labelling	GRI 103: Management approach 2016 GRI 417: Marketing and labelling 2016	103-1 to 103-3 417-1 to 417-3
Eco-Design	GRI 103: Management approach 2016 GRI 301: Materials 2016 GRI 302: Energy 2016 GRI 304: Biodiversity 2016	103-1 to 103-3 301-1 to 301-3 302-5 304-2
Managing product end-of-life and recycling systems	GRI 103: Management approach 2016 GRI 301: Materials 2016 GRI 306: Effluents and waste 2016	103-1 to 103-3 301-3 306-2, 306-4
Animal welfare	GRI 103: Management approach 2016 GRI 304: Biodiversity 2016	103-1 to 103-2 304-2
RECYCLING AND EFFICIENT USE OF RESOURCES
Energy consumption and GHGs	GRI 103: Management approach 2016 GRI 302: Energy 2016 GRI 305: Emissions 2016	103-1 to 103-3 302-1 to 302-5 305-1 to 305-7
Water consumption and controlling discharges	GRI 103: Management approach 2016 GRI 303: Water 2016 GRI 306: Effluents and waste 2016	103-1 to 103-3 303-1 to 303-3 306-1, 306-3, 306-5
Waste control and management	GRI 103: Management approach 2016 GRI 306: Effluents and waste 2016	103-1 to 103-3 306-2, 306-4
Protecting biodiversity	GRI 103: Management approach 2016 GRI 304: Biodiversity 2016	103-1 to 103-3 304-1 to 304-4
IMPROVING COMMUNITY WELFARE
Socio-economic impact on the community	GRI 103: Management approach 2016 GRI 201: Economic performance 2016 GRI 203: Indirect economic impacts 2016	103-1 to 103-3 201-1 to 201-4 203-1 to 203-2
Investment in the community	GRI 103: Management approach 2016 GRI 203: Indirect economic impacts 2016 GRI 413: Local communities 2016	103-2 to 103-3 203-1 to 203-2 413-1 to 413-2
Stakeholder engagement and dialogue	GRI 102: General disclosures 2016 GRI 103: Management approach 2016	102-40, 102-42 - 102-44 103-1 to 103-3
CORPORATE GOVERNANCE
Security and protection of data and information systems	GRI 103: Management approach 2016 GRI 418: Customer privacy 2016	103-1 to 103-3 418-1
Corporate governance	GRI 102: General contents 2016 GRI 103: Management approach 2016 GRI 415: Public policy 2016	102-18 to 102-39 103-1 to 103-3 415-1
Transparency and tax contribution	GRI 103: Management approach 2016 GRI 201: Economic performance 2016	103-1 to 103-3 201-1
Compliance with regulations and responsible practices	GRI 102: General disclosures 2016 GRI 103: Management approach 2016 GRI 205: Anti-Corruption 2016 GRI 206: Anti-competitive practices 2016 GRI 307: Environmental compliance 2016 GRI 419: Socioeconomic compliance 2016	102-16, 102-17 103-1 to 103-3 205-1 to 205-3 206-1 307-1 419-1
Risk management and control systems	GRI 103: Management approach 2016	103-1 to 103-3
OTHER BUSINESS ASPECTS
Volatility of raw material prices	GRI 103: Management approach 2016	103-1 to 103-3
Changes in regulation	GRI 103: Management approach 2016	103-1 to 103-3
Logistics model	GRI 103: Management approach 2016	103-1 to 103-3
Expansion in new markets	GRI 103: Management approach 2016	103-1 to 103-3
Exposure in mature markets	GRI 103: Management approach 2016	103-1 to 103-3

Within the organization Outside the organization Within and outside the organization Direct Indirect

* Indicates where the impact occurs, within the organization, outside the organization or both.
** Indicates the organization’s involvement in the impact.
Direct: The organization is directly linked to the impact
Indirect: The organization is linked to the impact through its business relations

Materiality matrix

The following organizations, among others, have been consulted in the definition of material issues for 2016
Inditex Social Advisory Board, Cáritas Spain, Centre for Business and Public Sector Ethics of Cambridge, Spanish Committee of UNHCR, Spanish Red Cross, Economics for Energy, Entreculturas, Every Mother Counts, Fundación Seres. Sociedad y Empresa Responsable, IndustriALL Global Union, Medicus Mundi, University of Santiago de Compostela, University of A Coruña, The Humane Society of the United States, International Labour Organization (ILO), UN Global Compact, Textile Exchange, Water.org.