Zara owner Inditex urged to publish full supply chain for ‘greater transparency’

Investors behind Zara owner Inditex are calling on the Spanish fashion giant to make its full list of suppliers public so they can better assess any supply chain risks.

Unlike its rivals H&M, M&S and Primark, Inditex is an outlier among the major fashion retailers in not publishing which factories it sources.

While it publishes an annual list of suppliers it sources from in 12 of its core countries, it reportedly gives “no information” on individual factories, Reuters reported.

Regulators and investors want greater transparency and better disclosure from companies and fashion retailers in particular to prove that there is no forced labour in their supply chains, and that garment workers are paid decent wages.

In the EU, disagreements have stalled proposed rules that would require all big companies to disclose whether supply chains harm the environment or use child labour.

Proposed sanctions for not complying could include fines of 5% of revenue.