Inditex faces scrutiny over logistics emissions and labour practices in Bangladesh

Coinciding with its Annual General Meeting today, the Inditex group has been the subject of criticism from an international coalition of non-governmental organisations (NGOs).

The NGOs, including Clean Clothes Campaign, FAIR and Public Eye, are urging the Galician multinational to review its logistics strategy and to intervene in response to labour complaints affecting suppliers in Bangladesh.

As part of the campaign, the organisations called for protests at 12pm GMT today, in front of the Zara store in Plaça de Catalunya in Barcelona and at Corso Vittorio Emanuele II, 15, in Milan.

Two open fronts

One of the main points highlighted by the NGOs is the company's logistics model. According to research published yesterday by Public Eye, emissions from Inditex's transport and distribution have reportedly increased by 10 percent over the last financial year, reaching 2.6 million tonnes of CO2 equivalent.

These emissions, generated mainly by the use of air transport, represent approximately 20 percent of Zara's total carbon footprint per garment. Public Eye spokesperson, David Hachfeld, "demands" the company "completely and rapidly eliminate air fashion". He is also calling on shareholders to "demand transparent data on cargo flights and clear targets towards a logistics model that does not depend on these polluting practices".

In parallel, the coalition is calling on Inditex to use its influence to urge its suppliers in Bangladesh to drop the charges against some 3,000 textile workers. These employees were prosecuted after participating in the 2023 protests to demand an increase in the minimum wage. The NGOs describe these charges as "groundless" and warn that they contribute to a climate of fear in supplier factories, hindering the exercise of basic trade union and labour rights.

The coalition demands Inditex use its contractual power to demand suppliers drop the charges. It warns that international brands "allow delegated repression by the Bangladeshi authorities", arguing that "the fight for a living wage and the demand to abandon the irresponsible use of fossil fuels to transport clothing are two sides of the same coin".

A difficult logistical context

The debate on the viability of a model without "air fashion" remains open in the sector. Public Eye highlights the case of H&M, which, according to its estimates, limits air transport to one percent of its shipments. This represents 5.2 percent of its total climate footprint. However, the role of air transport varies according to each company's business model and sourcing strategy.

Inditex has pointed out in the past that air transport is not its priority logistics route. It uses it on an ad hoc basis in extraordinary situations, especially those linked to seasonal fashion and rapid product replenishment. Basic and timeless garments, according to the company, continue to arrive mostly by sea.

The current context reinforces this explanation. Since late 2023, tensions in the Red Sea, exacerbated by attacks by Houthi rebels and the presence of piracy in the area, have increased the difficulties of maritime transport from Asia. In this scenario, many companies, including Inditex, have resorted to air transport as an alternative to avoid disruptions to their supply chains.

Its procurement model, designed to prioritise flexibility and rapid market response, is effective from a commercial point of view. However, it introduces significant challenges when it comes to moving towards decarbonising its logistics.

According to the company's latest sustainability report, emissions from transport and distribution represented 12.1 percent of its total carbon footprint in 2023, compared to 8.4 percent in 2022.