Industria de Diseño Textil S A : Statement on non-financial informationEspañol

Inditex Group

Statement on

Non-Financial

Information

Financial Year 2020

This document is an integral part of the consolidated director's report of Industria de Diseño Textil, S.A. and its subsidiaries, as Annex IV thereof. It has been stated by the board of directors in the meeting held on 9 March 2021

Inditex | Statement on Non-Financial Information 2020

Inditex in 2020		Protect		Drive		Develop		Collaborate		About this report

Contents

1. INDITEX IN 2020	7
1.1. 2020 milestones	8
1.2. Sustainable business model	12
a) Design	14
b) Manufacture and supply	14
c) Logistics and distribution	14
d) Stores/Online	14

LINES OF ACTION IN ORDER TO BE A RESPONSIBLE AND SUSTAINABLE COMPANY	17
Our approach to sustainability	18
Contribution to sustainable development	22
Materiality analysis	23

2. PROTECT	29
2.1. Response to the global challenges arising from covid-19	30
2.1.1. The health, safety and well-being of our people	30
a) Care for our people in the face of covid-19	30
b) Health and safety protection	32
c) Health and safety indicators	34
2.1.2. Protecting workers in the supply chain	37
a) Health first	38
b) Protecting people	40
c) Economic response and recovery	41
d) Multilateral collaboration	41
2.1.3. Commercial spaces	43
2.2. Employment	44
2.2.1. Introduction	44
2.2.2. Staff distribution by contract type	44
2.2.3. Staff distribution by type of working hours	46
2.2.4. Leavers	46
2.3. Labour relations	47
2.3.1. Organization of work	49
2.4. Customer orientaton	50
2.4.1. Inditex, a model by and for the customer	50
2.4.2. Response to our customers in 2020	52
a) Customer service channels: contacts and service levels	52
b) Social media followers	53
c) Complaint and response mechanisms	53

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Statement on Non-Financial Information 2020 | Inditex

2.5. Information security and privacy	54
2.5.1. Information security	54
2.5.2. Personal Data Protection and Privacy	55
2.6. Robust Compliance Architecture	56
2.6.1. Internal corporate ethical culture	56
2.6.2. Compliance and criminal risk prevention system	57
a) Strategy	57
b) Compliance System management and supervision bodies	61
c) Committee of Ethics and the Ethics Line	61
d) Training, communication and awareness	63
2.6.3. Good Corporate Governance	68
a) Towards sustainable governance	69
b) Organisation and operation of governing bodies to confront the challenges of covid-19	72
3. DRIVE	75
3.1. Innovation and digitalisation	76
3.1.1. Customer-focused innovation	76
a) Improving the shopping experience	77
b) Building customer confidence	79
3.2. Diversity, inclusion, equality, and work-life balance	83
3.2.1. About us	83
3.2.2. Diversity & Inclusion Policy	86
3.2.3. Global Initiatives to Promote Diversity and Inclusion	86
3.2.4. Gender Equality	87
3.2.5. Inclusion of People with Disabilities	88
3.2.6. LGBT+ inclusion	89
3.2.7. Against all forms of racism and discrimination	89
3.2.8. Work-life balance	90
3.3. Talent management	91
3.3.1. Talent attraction	91
3.3.2. Talent management	92
3.3.3. Training	92
3.3.4. Connecting with our staff and employee engagement	96
3.4. Remuneration policy	97
3.4.1. Pay gap	97
3.4.2. Global average remuneration	98
3.4.3. Remuneration of directors and senior management	98
3.5. Tax contribution and tax transparency	99

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Inditex | Statement on Non-Financial Information 2020

Inditex in 2020		Protect		Drive		Develop		Collaborate		About this report

3.6. Contribution to the socio-economic development of workers and the industry	102
3.6.1. Workers at the Centre 2019-2022	102
3.6.2. Priority Impact Areas	105
a) Worker Participation	105
b) Living Wages	107
c) Gender, diversity and inclusion	108
d) Occupational Health and Safety	110
e) Protection of migrants and refugees	111
f) Social Protection	113
g) Protection of labour rights in the production of raw materials	114
3.7. Circularity	116
3.7.1. Circularity at Inditex	116
3.7.2. Main lines of action	117
a) Minimising impact in the supply chain	118
b) Minimising the impact in the use of products	119
c) Minimising end-of-life impact	119
d) Raising consumer awareness	127
3.7.3. Other collaboration projects with third partiess	127
4. DEVELOP	131
4.1. Minimising environmental impact across the value chain	132
4.1.1. Commitment to external initiatives	135
4.1.2. Our approach to decarbonisation and energy management	136
a) Global Energy Strategy	136
b) Global energy consumption	136
c) Major commitment to renewable energies	137
d) Greenhouse gas emissions	138
e) Energy Management	138
4.1.3. Our approach to water management	144
a) Global Water Management Strategy	144
b) Consumption	144
c) Initiatives in own operations	145
d) Initiatives in the supply chain	145
4.1.4. Our approach to biodiversity	146
a) Biodiversity-related initiatives	146
b) Animal welfare	147
4.2. Sustainability of our products	148
4.2.1. Design	148
4.2.2. Selection of materials	148
a) Innovation	149
b) Sustainable raw materials	150
c) Raw material control	152

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Statement on Non-Financial Information 2020 | Inditex

4.2.3. Join Life programme	154
4.2.4. Health and safety aspects of our products	156
a) Our product health and safety standards	156
b) Product health and safety control procedures	158
c) Training and awareness-raising	161
4.3. Sustainable management of the supply chain	162
4.3.1. Traceability of our supply chain	162
4.3.2. Policies, standards and principles on which our supply chain management is based	164
a) Code of Conduct for Manufacturers and Suppliers	164
b) Green to Wear	164
c) Responsible purchasing practices	164
4.3.3. Assessment and Ongoing Improvement	165
a) Pre-Assessment	165
b) Auditorías Sociales	166
c) Environmental Audits	167
d) Special Audits	167
e) Continuous Improvement: Corrective Action Plans	168
4.4. Human Rights	169
4.4.1. Inditex Group Policy on Human Rights	170
4.4.2. Due Diligence	170
4.4.3. Grievance mechanisms	171
5. COLLABORATE	173
5.1. Covid donations	174
5.2. Corporate community investment	176
5.2.1. Inputs	178
5.2.2. Outputs	181
5.2.3. Impacts	182
a) Community impacts	182
b) Business impacts	183
5.2.4. Key projects	184
a) Education	184
b) Social Welfare	187
c) Emergency Relief	191
d) Other issues addressed	194
5.3. Partnerships with civil society	195
5.4. Recognitions and accolades	200
6. ABOUT THIS REPORT	203
6.1. Report framework	204
6.2. Index of contents required by act 11/2018, of 28 December	206

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