Inditex investors call for full supply chain transparency

While Inditex publishes an annual list of suppliers it sources from in 12 of its core countries, it reportedly gives “no information” on individual factories, according to Reuters.

Investors and regulators are said to want “greater transparency” and “better disclosure” from companies, putting fashion retailers in particular under pressure to prove they are operating with an ethical supply chain.

Fashion and sportswear giants Adidas, Nike, Primark, Puma, M&S, H&M and Hugo Boss are among those who already publish detailed supplier lists, including both factory names and addresses.

Inditex shareholders told Reuters it is important for them to have the insight to show whether Inditex has the information readily available, as well as for “its own due diligence”.

The Inditex investors that spoke to Reuters have a combined stake in the business of around £1.56bn.

A spokesperson for MN, which manages Dutch pension fund assets and leads Inditex’s Platform Living Wage Financials group of investors, said: “In our engagement with Inditex one of the things we ask is if they could disclose a list of their suppliers and the geographical location.”

An Inditex spokesperson said: “Inditex has a deep commitment to maintaining high standards in its supply chain, and believes that our industry-leading traceability system, which gives us maximum visibility of the supply chain, is key to this.”