Water is one of the critical factors of ESG (Environment, Social, and Governance). Fresh and clean water is increasingly endangered despite being considered a plentiful renewable resource mainly due to population growth and economic activity leading to an increase in water demands and pollution.
According to United Nations, if current consumption and production patterns do not change, there will be a 40% shortfall in water supply by 2030. Companies are expected to face increased scrutiny such as limits on water withdrawal and tight regulations over their water use as global water resources face increased stress.
The retail sector is one of the major contributors to the world water crisis. According to the World Bank, the apparel and textile industry consumes a huge amount of water and is a major polluter of water at all stages of its value chain.
Inditex SA (Inditex) is an in-store and online retailer that designs, distributes, and retails apparel for men, women, and children. Its product portfolio includes clothing and leather garments and apparel such as designs and fabrics, lingerie, sweatshirts, t-shirts, jeans, and sports clothing. The company offers sheets, blankets, quilts, towels, tablecloths, bath linen, dishware, glassware, hygiene products, and home decoration objects and accessories. Inditex operates retail stores under various commercial concepts including Zara, Pull & Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home, Zara Kids, and Uterque.
In 2021, Inditex’s total water consumption was 1,886.9 thousand cubic meters of water, an increase of around 13.5% over 2020.
To save on water consumption the company is taking initiatives in its operations as well as supply chain. In operations while planning new projects the Group factors in the use of storm tanks, which allow rainwater to be recovered from the roof and used for irrigation. In 2021, it recovered 10,439 cubic meters of water at its centers in Cerdanyola, Arteixo, and Lelystad.
The company’s supply chain is key to its policy of responsible management of water use, as it is applied in the wet processes necessary for the manufacture of textile products (washing, dyeing, and printing), as well as in the cultivation of various raw materials. Hence, Inditex has set a goal to reduce water consumption by 25% throughout the supply chain by 2025.
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