Inditex is said to be facing pressure from investors to make the details of its suppliers public in a bid to better assess supply chain risks.
It is understood that many of the Spanish group’s investors are demanding for greater transparency from the firm, according to Reuters, a call that comes at a time when many clothing retailers are keen to prove the ethical standards of their operations.
One shareholder for Inditex, asset manager MN, told the media outlet that it wanted Inditex to disclose a list of suppliers and their geographical location.
The firm added: “Even though Inditex assures us that they have this data available, up until now Inditex is not willing to disclose this information unlike some industry peers who publish extensive supplier lists.”
A similar sentiment was seen across all five of the investors Reuters spoke to, all of which collectively hold a combined stake worth around two billion dollars.
Grace Su, a portfolio manager at one, Clearbridge Investments, said that the firm had also called for more clarity, noting: “It’s very important because of all the scrutiny around ESG, and labour, and inputs. They claim to be a leader in this so it’s really important for them to actually have that level of disclosure.”
While Inditex does outline the number of suppliers from 12 main countries, it currently does not provide detailed information on individual factories.
Inditex declined to comment on the mounting pressure from shareholders, however a spokesperson for the company told Reuters: “Inditex has a deep commitment to maintaining high standards in its supply chain, and believe that our industry-leading traceability system, which gives us maximum visibility of the supply chain, is key to this.”
