ACTIVITY

Fast Fashion by Zara

Apparel and footwear production currently accounts for 8.1 percent of global greenhouse gas emissions, or as
much as the total climate impact of the entire European Union (Chua, 2019). Zara, the flagship brand of the
Inditex Group, has gained a reputation as the ultimate destination for European fashion, with nearly 3000
stores in 96 countries, and billions of dollars worth of profit each year. But just how ethical is Zara? How is this
fast fashion giant impacting people, the planet, and animals? (Dockrill, 2020).
An article published by Dockrill (2020) rated Zara “Not Good Enough” on its environmental impact. The author
highlighted how Zara’s parent company, Inditex, has started a repair and reuse program called Closing the
loop. The program offers customers the opportunity to drop off their used garments in-store or through the
post in order for their clothes to gain a second life—which is a good initiative. The brand also uses recycled
packaging. However, there is no evidence it minimizes textile waste when manufacturing its products. And,
although Zara has set an absolute target to reduce greenhouse gas emissions generated from its own
operations and supply chain, there is no evidence it is on track to meet its target. Dockrill later emphasized
that Zara’s business model is based on trendy styles and regular new arrivals, which is inherently harmful to
the environment.
In terms of labor, half of the company’s final stage of production is undertaken in Spain (a medium risk country
for labor abuse). Also, the brand received a relatively low score of 51 – 60% in the Fashion Transparency Index
(a tool that aims to push major brands to become more transparent and disclose about their social and
environmental policies, practices, and impacts). Regardless of the low score, Zara is somewhat transparent as
it likely publishes detailed information about its supplier policies, audits, and remediation processes. Zara also
publishes a detailed list of suppliers in the final stage of production, some information about the findings of
their supplier audits, as well as some information about forced labor, gender equality, or freedom of
association. It also discloses some policies to protect suppliers and workers in its supply chain from the impacts
of COVID-19 (Dockrill, 2020).
Zara’s animal welfare policy is aligned with Five Freedoms (a model designed for animal protection), which
includes a strict ban on fur, angora, and stocking products tested on animals. However, the company still uses
wool, leather, and exotic animal hair, among others, in its production.
Requirements: Based on the case facts/supplementary research, conduct an environmental review for Zara.
Simply fill in the project outline with the appropriate ratings. Then, provide a general assessment of the
company’s environmental initiatives. Justify your ratings for each business area.

Overall Environmental Likelihood of Problem

Area of business
score hazard
Distribution and transport 2 1
Management issues and awareness 2 2
Legislation 3 1
Marketplace 1 1
Waste and discharges 8 2
Paper and packaging 8 2
Site management/ Housekeeping 1 1
Planning/ Development/ Land issues 8 2
Product 8 2
Process 1 1
Raw materials 8 2
occurrence size
2 1
1 1
2 2
1 1
2 2
2 2
1 1
2 2
2 2
1 1
2 2

03 Activity 1 *Property of STI

Page 1 of 2
8

Overall Environmental Likelihood of Problem

Area of business
score hazard occurrence size
Water 8 2 2 2
Energy and fuels 8 2 2 2
Stakeholders 8 2 2 2
Important note: if no pertinent information/data is available on a particular area of business, simply assign
one (1) to its overall score.

General Assessment: (20 points)

Being one of the leading fashion retailers in the world, Zara has the chance to set the
standard for a more sustainable future. To give a set of standards that can be utilized as a
measurement tool, businesses have created environmental goals. Despite the possibility
that these criteria may promote change, the most of corporate commitments are
meaningless. Their environmental performance and the substance of their Strategic
Environmental Sustainability Plan 2016-2020, which includes steps to lower greenhouse gas
emissions, are the two criteria I use to score them. The gap between environmental
sustainability reporting and actual sustainability implementation is often disturbing. To
maintain Inditex's reputation, a considerable shift toward movement is needed rather than
depending on reports.

03 Activity 1 *Property of STI

Page 2 of 2