INDITEX : 2020 Annual Report

Inditex

Group

Annual

Report

2020

Inditex | 2020 Annual Report

About Inditex

Lines of action

Protect

Drive

Develop

Collaborate

Appendices

Annual accounts

How we report

Index

About this report	5
Executive
Chairman's statement	7
About Inditex	11
Milestones 2020	12
Key figures	15
Retail formats	23
Business model	41

Lines of action in
order to be a
responsible and
sustainable company	49
Our approach to sustainability	50
Lines of action in order
to be a responsible and
sustainable company	57
Contribution to
Sustainable Development	59
Stakeholder relations	63
Materiality analysis	68

Protect	73
Response to the global
challenges arising from covid-19	75
Employment	89
Labour relations	95
Customer focus	101
Information security and
privacy	109
Robust Compliance
architecture	113

Drive	135
Innovation	137
Diversity, inclusion, equality,
and work‑life balance	163
Talent management	175
Remuneration policy	183
Shareholder relations	187
Tax contribution and tax
transparency	191
Contribution to the
socio‑economic
development of workers
and the industry	199
Circularity	261

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Inditex | 2020 Annual Report

Develop	283	Appendices
Minimising environmental		Sustainable management
impact across the value chain	285	of the supply chain indicators
Alignment with the Task		Our product sustainability
Force on Climate-related		indicators
Financial Disclosures (TCFD)	311	Minimising environmental
Sustainability of our products	323	impact across the value
Sustainable management		chain indicators
of the supply chain	349	Corporate Community
Human Rights	367	Investment indicators
Indicators of our people
Collaborate	373	Contribution of Inditex
Covid-19 donations	375	towards the Sustainable
Development Goals. Key
Corporate Community		indicators
Investment	381
Partnerships and
commitments with civil
society	417
Acknowledgements	425

429	Annual accounts	449
430	Economic and financial report	451
Consolidated directors' report	517
434	Enterprise Risk
Management Systems	533
	Internal Control System (ICFR)	549
436	How we report	567
438	How we report	568
441	Balance of Material topics	570
	SASB reference table	572
	TCFD Index	575
446	GRI content index	577

3

Inditex | 2020 Annual Report

About Inditex

Lines of action

Protect

Drive

Develop

Collaborate

Appendices

Annual accounts

How we report

4

Inditex | 2020 Annual Report

About this report

Inditex pubishes this Annual Report with the goal of informing all its stakeholders about how Inditex creates value in the short, medium and long term, in line with its commitment to transparency and truthful, relevant and precise communication of information. This Annual Report is presented in the form of an integrated report which is available in printed (pdf) and digital format, and is complemented by the information contained on the corporate website (www.inditex.com) and in the Statement on Non Financial Information (SNFI). The SNFI, included in the Inditex Group Consolidated Management Report, is also accessible at www.inditex.com.

For the preparation of the Annual Report, Inditex has adopted the best and most cutting-edge reporting practices. In 2020, the Annual Report has taken as an additional reference the SASB (Sustainability Accounting Standards Board) reporting framework and, specifically, the disclosures and metrics of the Apparel, Accessories and Footwear sector.

For more information, please see the section How we report of this Annual Report.

Likewise, in line with our commitment to the Task Force on Climate-Related Financial Disclosures (TCFD) announced in the 2019 Annual Report, Inditex has started to incorporate the recommendations of this framework to provide greater transparency on the risks and opportunities of climate change for our Company. This Report includes a specific chapter on our management of climate change risks and opportunities, in addition to a TCFD Index that refers to the relevant related information. Our goal is to continue to make progress in alignment with TCFD in order to fully incorporate its recommendations into future financial years.

For more information, please see chapter 3.2. Alignment with the Task Force on Climate-relatedFinancial Disclosures (TCFD) of this Annual Report.

In the How we Report section of this Report, detailed information is provided on the principles followed by Inditex, and it includes the GRI Content Index - where it is illustrated our Communication on Progress on the UN Global Compact Principles-; the SASB Reference Table; the TCFD Index; and the information on the external assurance process carried out by Deloitte, S.L., which corroborates the appropriateness of the reported GRI Standards application option (In accordance - Comprehensive).

PRINCIPLES UNDERPINNING INDITEX'S

ANNUAL REPORT

GRI SUSTAINABILITY REPORTING STANDARDS

• This report has been prepared in accordance with the GRI Standards: Comprehensive option.
• A GRI reporter since 2007.
• GRI Community member.

UNITED NATIONS GLOBAL COMPACT PRINCIPLES

• This Report includes the Communication on Progress contained in the GRI index.
• The most recent Communication on Progress (COP) was rated 'GC Advanced' (the highest level awarded by the Global Compact).
• Global Compact member since 2001.

AA1000 APS (2008) ACCOUNTABILITY PRINCIPLES STANDARD

• This report follows the recommendations of the accountability principles standard AA1000 APS (2008).

INTERNATIONAL FRAMEWORK PRINCIPLES

• This report follows the criteria prescribed in the Integrated Reporting Framework, since its first pilot in 2011.
• Member of the International Integrated Reporting Council (IIRC) Business Network.

SASB INTERNATIONAL FRAMEWORK PRINCIPLES

• For the first time in 2020, the recommendations of SASB were followed in the preparation of the Annual Report.
• A SASB reference table is included in relation to the Apparel, Accessories and Footwear standard.

TASK FORCE ON CLIMATE-RELATED FINANCIAL DISCLOSURES (TCFD)

• In 2020, the alignment process with the TCFD recommendations has begun.
• A specific chapter on the risks and opportunities of climate change and its management by Inditex, as well as a TCFD index, is included.

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