Sustainability & need for transformation

Murat AkkunInditex Sustainability Country Manager

A bit of History

1963, GOA Clothing Manufacturer in a Coruña.

A bit of information

CSR 2.0

«Respecting human rights is not a passive responsibility: it requires action on the part of

businesses.»

• Ruggie “Protect, Respect and

Remedy”Framework:

Special Representative of the United

Nations Secretary-General, Professor

John Ruggie.

• The State duty to protect human rights

• The corporate responsibility to respect human rights

• The need for greater access to remedy for victims of business-related

abuse.

CSR 2.0 The World of Collaboration

2020 TARGETS

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100%ECO-

EFFICIENT STORES

20% CARBON FOOTPRINT REDUCTION

MORE SUSTAINABLE MATERIALS

ZERO DISCHARGE

OF HAZARDOUS CHEMICALS

ZERO WASTE

Environmental Sustainability

• Chemicals are used in apparel and footwear production

• Some chemicals are hazardous and can be harmful for the environment, for reproduction and for aquatic organisms

• This is why we have been working hard in regulating chemical thresholds, which in many cases is more stringent than required by legal regulations or industry standards

• However, residuals and contaminations can still exist

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• That is why we have made a commitment to lead Inditex towards zero discharge of hazardous chemicals by 2020

• Ultimately, chemical management across our supply chain must be improved and integrated

WHY ZDHC?

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Inditex’s Chemicals Guidelines

I. Manufacturing Restricted Substances List (MRSL)List of chemical substances subject to a usage ban in the manufacture of Inditex'sorders

II. Product Restricted Substances List (PRSL)

III. Chemicals and parameters to be tested on the water sample11 priority chemical groups:

1. Alkylphenol Ethoxylates/Alkylphenols(APEOs/APEs)

2. Perluorinated Chemicals (PFCs) and Fluorotelomers

3. Phthalates (ortho-phthalates)4. Short-Chained Chlorinated Paraffins

(SCCPs)5. Azo Dyes

6. Brominated and Chlorinated Flame Retardants

7. Chlorinated Solvents8. Chlorobenzenes9. Chlorophenols10. Heavy Metals 11. Organotin Compounds (e.g., TBT)

• Be aware of the Inditex’s Zero Discharge Project, its context and

implications

• Comply with the Inditex’s MRSL

• Establish your chemical management control system

• Continue to be stringent on the chemicals used in production

• Go through the published materials on Inditex’s Master Plan website

• Communicate with your own supply chain

• Designate an Environmental, Health and Safety (EHS) manager

INDITEX EXPECTATIONS ON SUPPLIERS

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»It is not the strongest of the species that survives, nor the most intelligentbut the one most responsive to change.»

Transforming Industry

Change is inevitable

Thank you

murata@itxtrading.com