Spanish listed fashion giant Inditex may be under pressure from its investors to disclose details about its suppliers in order to better assess supply chain risks.
Inditex is the largest fashion group in the world in terms of turnover and is active on all continents. Many of the Spanish group’s investors are reportedly demanding more transparency from the company. As Reuters news agency reports, the request comes at a time when many retailers are keen to demonstrate the ethical standards of their operations.
Who are the suppliers and where do they come from?
Inditex shareholder MN Asset Management told the media that it wants Inditex to disclose its list of suppliers and their geographical location. The company added: “Although Inditex assures us that they have this data available, they are so far unwilling to disclose this information, unlike some competitors in the industry who publish extensive lists of suppliers.
Inditex does not provide detailed information
A similar sentiment was observed among five other investors, who collectively own a stake of about $2 billion. Grace Su, portfolio manager at Clearbridge Investments, said the firm had also asked for more clarity, noting: “It’s very important because of all the oversight of labour, inputs and ESG.” This term is often used in the investment world, rather than sustainability. The term stands for Environmental, Social & Governance. “Inditex claims to be a leader in this, so it’s really important for them to have that level of disclosure.” The Spanish fashion company describes the number of suppliers in 12 key countries. However, it does not currently provide detailed information about individual factories.
No comments at Inditex
Inditex declined to comment on growing pressure from shareholders, but a company spokesperson told Reuters: “Inditex is committed to maintaining high standards in its supply chain and we believe our industry-leading traceability system, which gives us maximum visibility into the supply chain, is key to this
