INDITEX AND HUMAN RIGHTS

Inditex recognizes that respect for Human Rights, as enshrined in the UN Guiding Principles on Business and Human Rights, is a vital part of sustainable development. That’s why our human rights strategy focuses on decision-making and value creation. In this regard, the strategy:

• is integrated into the entire business model;
• is developed through continual improvement;
• promotes and systematizes opportunities for dialogue;
• promotes internal training and involvement at all levels of the Group.
• its implementation is assessed based on measurable indicators.

On 12 December 2016, Inditex’s Board of Directors approved the Group’s Policy on Human Rights, which forms a fundamental pillar and cornerstone of Inditex’s human rights strategy. This policy has not been created from scratch; rather, it is an updated reflection of all the values that were already reflected in the Group’s guiding principles, as set out in the Code of Conduct and Responsible Practices, and Code of Conduct for Manufacturers and Suppliers.

In its Policy on Human Rights, Inditex makes a commitment to play a conscientious role in promoting Human Rights, working proactively in this area. The Group also undertakes to avoid or mitigate the negative consequences on human rights of its own activities.

The second of the fundamental pillars of this strategy – apart from political commitment – is due diligence. This means identifying Human Rights related to each of the areas or processes that the company is involved in throughout the value chain. Conclusions are incorporated and integrated into the company’s strategies and processes. The involvement of all areas of the Group and external stakeholders is particularly vital. In 2016, Inditex embarked on a review and update of its due diligence processes, using best practices identified both within and outside the company to create a global due diligence model that will be applied to the whole organization throughout 2017 and beyond.

As a third pillar of our strategy, grievance mechanisms strengthen due diligence processes as they help in identifying and providing timely solutions to any potential negative impacts on Human Rights while strengthening relations with our stakeholders. Inditex’s main grievance mechanism is the Whistleblowing Channel managed by the Ethics Committee, which is available to all employees and third parties with a legitimate interest.