Investors Urge Zara Owner Inditex To Publish Full Supply Chain

Investors are pushing for Zara owner Inditex to follow the lead of rivals H&M and Primark by making its full list of suppliers public.

While Zara owner Inditex annually discloses the number of suppliers it sources from in 12 core countries, it provides no information on individual factories. I Photo: Ikusuki Flickr

This move would allow investors to better assess any supply chain risks. Inditex stands out among major clothing retailers for not publishing the factories it sources from. Regulators and investors are advocating for greater transparency and improved disclosure from companies, as reported by Helen Reid for Reuters.

Clothing retailers, in particular, face pressure to demonstrate the absence of forced labor in their supply chains and ensure that garment workers receive fair wages.

Chinese fashion group Shein has faced scrutiny from US lawmakers over supply chain risks ahead of its plans for a US listing. In the European Union, proposed rules mandating disclosure of supply chain impacts on the environment or the use of child labor have been delayed due to disagreements.

Proposed penalties for non-compliance could include fines amounting to 5% of revenue.

Several fashion brands and retailers, including Adidas, H&M, Hugo Boss, M&S, Nike, Primark, and Puma, already publish detailed supplier lists, including factory names and addresses.

While Inditex annually discloses the number of suppliers it sources from in 12 core countries, it provides no information on individual factories. Inditex founder Amancio Ortega holds a 59% stake in the company, with daughter Sandra Ortega owning a 5% stake.

Together, they are worth about $69 billion.

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