Sustainability Recommendations Report
Zara Fashion Company
Zara, a Spanish apparel retailer with root in Galicia, Spain. It specialty is in products that
include accessories, swimwear, clothing, perfumes and beauty. Zara is Inditex group’s largest
company and as of 2020 it managed more than 20 collection per annum and over 450 million
products yearly ([Link]). In 1989 it entered the US market and in 2011 it opened its online
stores in the country. In 2014, it introduced RFID technology to its stores and it was put in the
security tags that were removed from the clothes after purchase and could be reused ([Link]).
The chips allowed the organization to fasten the inventory taking by discovering radio signals
from the tags. When a sale is made, the stockroom is notified immediately so they can restock
the item and if an item is not placed on the shelves can be found using the RFID tag easily. Most
of the company’s consumers are aged between 18 and 35 (both males and females) and they also
have children’s wear ([Link]). The product take approximately two weeks to reach to the
stores after they are designed and manufactured. All the processing, tagging and loading into
trucks is done in Spain at the distribution center.
In 2021, the company was valued at 13.2 billion US dollars. This was a decrease from
18.4 billion dollars in 2019 (Statista, 2022). This could be attributed by the fact that they had to
close down during the pandemic for several months. Zara is one of the best fashion retailers and
in 2015, it was ranked 30th in the interbrands list of best global brands of the best world brands.
Increased competitive and pressure from online shopping markets, had also made Zara shift to
these online platforms too. Its main competitors include UNIQLO, H & M and Fast Retailing
(Statista, 2022).
The Fashion Act.
According to the Senate, there are no legally binding environmental standards in place on the
footwear and apparel industries so this means that these retailers and manufacturers may step up
productions without considering environmental sustainability. The fashion act requires fashion
retailers and manufacturers to reveal social and environmental analysis policies and start up a
society benefit fund. This is for executing environmental gain projects that verifiably and directly
profit environmental justice societies. Its main purpose is to need fashion retailers to show their
supply chains, reveal the social and environmental effects of their activities and set goal on how
to improve those effects.
Summary of specific provisions.
Section 1 determines the title of this act, section 2 is used in amending the general
business law by including a new section 399-m to form the Fashion Sustainability and Social
Accountability Act which needs all fashion retailers and manufacturers doing business in a state
that have a yearly global receipt that is more than $100 million to reveal social and
environmental analysis polices, methods and results, including important potential or real
adverse social and environmental effects and reveal goals for improvements and preventions.
Those revelations must be put clearly on the retailer’s or manufacturer’s website in 12month of
enacting these policies or given to customers in writing if they do not have a website. The
designated administrator or the Attorney general is given the powers to enforce this law. Section
3 of the act amends the states finance law by including a new section 97- CCC to start a society
benefit funds to include all the funds deposited. The 4th section sets an effective date.
Zara’s Current Sustainability Practices
Zara’s approach to sustainability will be covered by exploring the pillars of people,
planet and profit. Currently, Zara has fully eliminated the utilization of plastic bags in their
business operations (Sitaro, 2020). This strategy has reduced the amount of waste accumulated
from single-use plastic bags. Also, Zara’s Join Life collection utilizes recycled fibers to make
garments. This process reduces environmental pollution and minimizes the exploitation of
natural and human resources when meeting lifestyle needs (Gheorghe & Matefi, 2021). Zara’s
website provides information on how the products are made using recyclable materials and
highlights the company’s efforts to minimize depletion of resources. For instance, the Join Life
collection is advertised as produced with low levels of water consumption (Gheorghe & Matefi,
2021). This process incorporates dyeing and washing using Ozone or Cold Pad Batch
technologies and closed circuits to reduce water consumption during these processes.
The company also developed a classification “Green to Wear” which classifies wet
process mills through a series of measures. The standards of “Green to Wear” focus on mills that
increase productivity and reduce impact on the environment in terms of water treatment process,
management of solid waste and water utilization ([Link]). Mills that fall on poor performance
classification are not utilized in the production process. Also, the company announced that in
three years, it will only focus on using organic, recyclable and sustainable materials. Also, the
company will be using renewable energy sources and transitioning to zero landfill waste
([Link]). Finally, the company has a clothing collection program whereby customers donate
their unwanted clothes for recycling and reusing. Zara is set out to work towards sustainability
by setting goals on zero emissions by 2040, using sustainable fibers, using renewable energy and
reducing water utilization in the production process.
References
Gheorghe, C. A., & Matefi, R. (2021). Sustainability and Transparency—Necessary Conditions for the
Transition from Fast to Slow Fashion: Zara Join Life Collection’s Analysis. Sustainability, 13(19), 11013.
Green to Wear 2.0 [Link]
ea5a-fa47-40bc-7e73d9a57a36
Inditex (2021) Sustainability Commitment
[Link]
ed48-5836-18ae983428d7
Sitaro, T. D. (2020). Fast Fashion and Sustainability-The Case of Inditex-Zara.
Senate Bill S7428 [Link]
%20%20Fashion%20Sustainability,and%20social%20due%20diligence%20policies%2C
Statista (2022) Zara’s Brand Value Worldwide from 2016 to 2021
[Link]
Zara (2022) [Link]
