At the same time as today’s Annual General Meeting, the Inditex Group was criticized by an international alliance of non-governmental organizations.
The organizations, including Clean Clothes Campaign, Fair and Public Eye, ask the Spanish fashion group to revise its logistics strategy. They are supposed to take action against the labor law complaints that affect suppliers: inside Bangladesh. The alliance primarily criticizes two points: the use of air traffic in the logistics chain and the situation of around 3,000 textile workers: inside in Bangladesh, which are prosecuted according to the wage protests in 2023.
As part of the campaign, the organizations announced protests in front of the branches at the Plaça de Catalunya in Barcelona and at Corso Vittorio Emanuele II, 15 in Milan of the Inditex flagship Zara.
Two open fronts
One of the main criticism of the NGOs is the company’s logistics model. According to an investigation published on Monday by Public Eye, the emissions from transport and sales of Inditex have increased by ten percent to 2.6 million tons of CO2 equivalent in the last financial year. These emissions, which are mainly caused by the use of air traffic, make up about twenty percent of the total climate balance per clothing from Zara. David Hachfeld, spokesman for Public Eye, calls for the “complete and quick abolition of air freight fashion” from the company. He appeals to the shareholders: inside that “it should demand transparent data about the freight flights and clear goals for a logistics model that is not based on these environmental practices”.
At the same time, the alliance Inditex calls on to use its influence to move its suppliers in Bangladesh to withdraw the charges against around 3,000 textile workers: inside. These employees were pursued by criminal law after taking part in protests for an increase in the minimum wage in 2023. The NGOs describe these accusations as “unfounded”. They warn that they contribute to a climate of fear in the supplier factories and that they make the exercise of basic trade union and labor rights difficult.
The alliance asks Inditex to use its contractual power. They should move the suppliers: in the inside to withdraw the charges. International brands would allow the “delegate oppression by the authorities in Bangladesh”. The “struggle for a livelihood and the demand for the end of the irresponsible use of fossil fuels for the transport of clothing” are “two sides of the same medal”.
A difficult logistical context
The debate about the feasibility of a model without “air freight fashion” is still open in the industry. Public Eye emphasizes the case of H&M, which, according to its own estimates, limits air transport to one percent of its programs. This corresponds to 5.2 percent of its total climate balance. However, the proportion of air traffic varies depending on the business model and procurement strategy of the individual companies.
In the past, Inditex has explained that air transport is not the preferred logistics method. You can only use it in extraordinary situations, especially in connection with seasonal fashion and fast product performance. Basic and timeless clothing would continue to be transported on the sea route.
The current context underpins this explanation. Since the end of 2023, the tensions in the Red Sea, intensified by attacks by Huthi rebels and piracy in the region, have reinforced the difficulties in sea traffic from Asia. In this scenario, many companies, including Inditex, used air transport as an alternative to avoid interruptions in their supply chains.
Inditex’s procurement model is geared towards flexibility and quick reaction to the market. From a commercial point of view, this is effective, but brings with it considerable challenges when it comes to driving the decarbonization of logistics.
According to the company’s latest sustainability report, the emissions from transport and distributed 12.1 percent of the total CO2 balance in 2023, compared to 8.4 percent in 2022.
This article was used with digital tools translated.
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