Who Owns Zara?

Inditex has set science-based targets to reduce greenhouse gas emissions across its operations and supply chain by 2030. The company aims for 100% of textile fibers used in manufacturing to be lower-impact materials. As of the end of 2024, Inditex achieved 73% lower-impact fiber usage.

Zara launched Zara Pre-Owned in 2022, a platform offering garment repairs, person-to-person resale, and clothing donation options. The service is available in 16 markets as of 2026. The Join Life collection features clothing made from organic cotton and recycled polyesters.

Inditex has committed to net-zero emissions and has invested in renewable energy for its stores and distribution centers. The company's logistics expansion includes investments in more efficient distribution systems to reduce transportation-related emissions.

The more difficult ethical questions involve labor practices in the supply chain. Inditex works with approximately 1,800 external suppliers, primarily in Spain, Portugal, Morocco, Turkey, and Asia. The company conducts audits and has a Code of Conduct based on International Labour Organization principles. However, critics have raised concerns about living wages in the supply chain and insufficient action regarding cotton sourced from the Xinjiang region of China, which has been linked to Uyghur forced labor.

Zara uses animal-derived materials including leather, wool, cashmere, and down. The brand does not use fur, angora, or exotic animal skins. Some animal-derived materials are certified or recycled. Zara sources wool from non-mulesed sheep and has a formal animal welfare policy.

• Inditex reported record sales, EBITDA, and net income in FY2025, with revenue reaching EUR 39.9 billion.
• Zara is the world's largest fast-fashion brand by revenue, generating EUR 28.1 billion in FY2025.
• Inditex's gross margin improved to 61.2% in Q1 2026, up 67 basis points from Q1 2025.
• Zara Pre-Owned launched in 2022, making Zara one of the first major fast-fashion brands to offer a circular fashion platform.
• Inditex operates 5,460 stores across 214 markets, making it the world's largest fashion retailer by store count and revenue.

Brazilian sweatshop investigation (2011). In 2011, a contractor responsible for 90% of Zara's Brazilian production was found to have subcontracted work to factories employing migrant workers from Bolivia and Peru in sweatshop conditions in Sao Paulo. The workers were found in unsafe conditions with long hours and below-minimum wages. Inditex stated that it was unaware of the subcontracting and terminated its relationship with the contractor. The company subsequently increased audits of its Brazilian supply chain.

Xinjiang cotton concerns. Zara and Inditex have faced criticism from human rights organizations for insufficient action regarding cotton sourced from the Xinjiang region of China, which has been identified as at risk of Uyghur forced labor. Inditex has stated that it does not source cotton from Xinjiang directly, but supply chain transparency limitations make verification difficult. The company has not published a detailed remediation plan.

Greenwashing accusations. Zara has been accused of greenwashing by environmental groups who argue that the brand's sustainability initiatives are insufficient to address the fundamental environmental impact of its fast-fashion business model. Critics point to the volume of new designs (approximately 12,000 per year) and the rapid product turnover as inherently unsustainable. Inditex has responded with its science-based emissions targets and circular economy initiatives, but the fundamental tension between fast fashion and sustainability remains unresolved.

Supply chain transparency. Inditex publishes a supplier list and conducts audits, but critics have called for more detailed disclosure of working conditions and wages at supplier factories. The company does not publish an aggregate breakdown of suppliers by risk level. Inditex has expanded its audit program and works with external organizations on supply chain monitoring, but full transparency has not been achieved.

Overconsumption concerns. Zara's business model, which relies on rapid trend cycles and frequent new deliveries, has been criticized for promoting overconsumption and disposable fashion. Environmental groups argue that the brand's affordable pricing and constant newness encourage consumers to buy more clothing than they need. Inditex has launched Zara Pre-Owned and the Join Life collection to address these concerns, but the core business model remains unchanged.