Image: Reuters/Paul Hanna
“Unlike some industry competitors, Inditex is not prepared to publish extensive supplier lists,” Dutch asset manager MN told Reuters on Monday. The fashion group assured the asset manager that the relevant data was available.
MN manages the assets of Dutch pension funds and is in discussions with Inditex for the Platform Living Wage Financials (PLWF). This is a group of 20 institutional investors with a total capital of 6.58 trillion euros that promotes higher incomes for workers in the clothing industry.
Largest fashion retailer in the world
The Spanish Inditex with its subsidiaries Zara, Pull & Bear, Massimo Dutti and Bershka is the world’s largest fashion retailer, ahead of H&M (Hennes & Mauritz). The group publishes the number of its suppliers in twelve core countries every year. However, specific information about the individual factories is not disclosed.
The group also declined to comment on the demands. “Inditex is committed to maintaining high standards in the supply chain,” the company said. “Our industry-leading traceability system, which gives us maximum supply chain visibility, is crucial to this.”
Supply chain law is shaky
Meanwhile, a Europe-wide supply chain law is shaky due to resistance from several EU states – including Austria. The directive is intended to hold companies across Europe accountable for deficiencies in their supply chains, such as human rights violations such as child labor or violations of environmental regulations.
However, none of the five Inditex investors surveyed by Reuters want to part with Inditex. Together they hold a stake of around $2 billion (1.8 billion euros) in the company, whose current valuation is around $140 billion. For comparison: company founder Amancio Ortega holds a 59 percent share, his daughter Sandra Ortega holds five percent. In total, the two come to around $69 billion.
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