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MATERIALITY ANALYSIS

Inditex sets priorities to advance the creation of economic, social and environmental value, and to meet the needs of its stakeholders while ensuring that the business can grow and generate value.

One of the most important tools the Group uses to set priorities is the materiality analysis, which tells us which issues most concern our stakeholders and how these impact our business model, and viceversa. We decide on our priorities based on the materiality analysis to ensure that Inditex’s sustainability strategy is in line with their expectations.

The result of the process undertaken in 2016 to review our priorities was a materiality matrix featuring 32 relevant topics that Inditex will concentrate on to develop and implement its sustainability strategy.

When identifying material topics and their boundaries, we have followed the recommendations contained in the Global Reporting Initiative (GRI) guidelines and the Integrated Reporting Framework. Materiality is one of the GRI Reporting Principles, which Inditex has adhered to when drafting its Annual Report. The materiality principle establishes that the Annual Report needs to reflect the organization’s significant economic, environmental and social impacts, as well as any aspects that substantially influence the evaluations and decisions of stakeholders.

STAKEHOLDER INCLUSIVENESS IDENTIFICATION SUSTAINABILITY CONTEXT MATERIALITY COMPLETENESS PROCESS OF PREPARING THE INDITEX MATERIALITY MATRIX Analysis of overarching trends and identification of relevant issues throughout the value chain DEFINITION OF PRIORITIES Presentation of the issues considered important by stakeholders to assess their relevance and influence on decisions VALIDATION Internal validation of the results of the materiality matrix by Inditex’s management, and external validation by the Social Advisory Board REVIEW The internal and external conclusions of the review of the matrix have been applied

MATERIALITY MATRIX BY PRIORITIES

INTERNAL RELEVANCE EXTERNAL RELEVANCE 50% 50% 75% 100% 75% 100% Other business aspects Corporate governance Improving community welfare Recycling and efficient use of resources Commitment to the excellence of our products Our customers Sustainable management of the supply chain People