Zara parent Inditex sets out sustainability priorities at AGM
Zara parent Inditex set our further ambitious sustainability at its AGM today, including a pledge to cut emissions along its value chain by 50% in 2030 (on the path to attaining net zero emissions by 2040).
At the event at its HQ in Arteixo, Northern Spain, the group (also home to brands including Massimo Dutti, Bershka and Pull & Bear) said it had prioritised its sustainability initiatives into four key areas to enable it to reach this goal.
These priorities are:
Lower-impact Fibres. By 2030, Inditex will only use textile materials that deliver a lower impact on the environment: around 40% of the fibres used by the Inditex brands will come from conventional recycling processes; roughly 25% will be next-generation fibres (some of which will be scaled up in partnership with start-ups identified through the Inditex Sustainability Innovation Hub); and 25% will hail from organic or regenerative farming practices.
Supply chain transformation. The group pledges to fuel social and environmental transformation across its supply chain. Social transformation will stem from its “Workers at the Centre” strategy, and the Environmental Transformation Programme centres around water, discharges, chemical product management and energy.
Biodiversity. Inditex will support projects for the protection, restoration or regeneration of up to 5 million hectares, helping to upgrade their biodiversity.
Circularity. Continuing to extend circularity initiatives such as Zara Pre-Owned.
Speaking at the event, Inditex chair Marta Ortega Pérez, said that “the magic of Inditex lies with our team and values, heavily influenced by self-imposed high standards. The future is not predetermined and we must never forget that”.
Shareholders approve the company's 2022 financial statements and the distribution of a €1.20 per-share dividend. In the year to the end of January 2022 the group's sales reached £28.77 billion (€32.6 billion), representing a 17.5% rise year on year. Net income also increased to £4.1 billion (up 27% compared to the previous year).
The strong performance continued in the first quarter of the new financial year with the fashion giant reporting a 52% jump in pre-tax profits to £1.3 billion (€1.5 billion) in the three months to 30 April, with net profits up by 54% to £999 million (€1.16 billion), which beat market forecasts. This profit haul followed a 13% surge in sales – up 15% with currency movements stripped out.
Commenting on the results Ortega Pérez said: “The results achieved in 2022 and early 2023 are the result of the incredible work done day after day by our teams, by each of the professionals comprising this company. [...] Our values mean that despite our huge size we are close-knit like a family. Successes are celebrated together but mistakes are taken on board as if they were one’s own. That is the strength behind the trajectory of each of our brands and what fuels their growth potential."
Main image: Inditex chair Marta Ortega Pérez and the board address shareholders at the AGM today.
