Investors are urging Inditex, the owner of Zara, to adopt the transparency practices of its counterparts, H&M and Primark and publicly disclose its full list of suppliers. They believe, this will help investors better evaluate potential supply chain risks, especially concerning forced labor and fair wages for garment workers. 

Several prominent fashion brands such as Adidas, H&M, Nike, and Primark have already disclosed their detailed supplier lists, including factory names and locations. However, Inditex has provided only aggregated data on the number of suppliers without revealing individual factories.

In response to demands for improved disclosure, led by Dutch asset manager MN, Inditex investors are advocating for transparency regarding supplier lists and geographical locations. MN represents Platform Living Wage Financials, a coalition of institutional investors aiming to ensure fair wages for workers in the garment and footwear industries.

Founded by Amancio Ortega, Inditex remains tight-lipped about disclosing its full supplier list, emphasising its commitment to maintain high standards in the supply chain. Meanwhile, the company’s engagement with global trade unions and benchmarking initiatives like Know The Chain indicate some efforts toward transparency, but calls persist for broader disclosures. 

Investors like Swetha Ramachandran from Artemis Investment Management are emphasising on understanding the geographic distribution of Inditex's manufacturing operations to assess supply chain resilience.

Grace Su from Clearbridge Investments and Hannah Shoesmith from Schroders highlight the significance of supply chain disclosure amidst increasing focus on environmental, social, and governance (ESG) factors in investment decisions. Marie Payne from Cardano underscores the potential impact of improved disclosure on investment choices.