Connect with us
Finance Digest is a leading online platform for finance and business news, providing insights on banking, finance, technology, investing,trading, insurance, fintech, and more. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.


Zara owner boosts sustainability goals as fast-fashion feels the heat

Zara owner boosts sustainability goals as fast-fashion feels the heat

By Corina Pons and Helen Reid

MADRID/LONDON (Reuters) -Zara owner Inditex said on Tuesday it will look to recycling and sustainably farmed crops to reduce its environmental impact by 2030, as fast-fashion retailers face growing pressure to cut waste.

By the end of the decade around 40% of the Spanish group’s fibres will come from conventional recycling and 25% from sustainably farmed crops, Chief Executive Oscar Garcia Maceiras said, revealing new sustainability targets at the annual shareholders’ meeting in A Coruna, northern Spain.

Another 25% will come from “next-generation” materials in which the group is investing, and the remaining 10% from other sustainable sources, the company said.

The new targets come as the European Commission is drawing up regulations to make clothing retailers pay for the waste they produce, arguing that fast-fashion companies “encourage customers to shop impulsively and incentivise purchasing larger quantities of clothes”.

Inditex previously had targets to use more sustainable cotton, linen, polyester, and fibres made from wood pulp, but did not have an overall goal for recycled fibres.

“Moving forward on sustainability is natural for us,” said Inditex Non-Executive Chair, Marta Ortega, in brief comments to investors at the AGM. She called the new targets a “great challenge”.

Inditex has achieved record sales, margins and profits since Ortega, the heir to the family business, took over as chair in April 2022. Its shares are up 38% this year.

Inditex shows no sign of slowing production. The company placed 621,244 tonnes of garments on the market last year, according to its 2022 annual report, 10% more than in 2021.

“Over the long term, we expect Inditex to transition toward a circular model for fashion, the pace of which will be metered by customer demand and regulation,” said Adam Gofton, portfolio manager at Mackenzie Investments in Toronto, which holds shares in Inditex.

“Inditex’s scale leaves the company well positioned to respond to regulatory pressure (scale means any incremental fixed costs can be spread over larger number of units),” he added.

(Reporting by Corina Pons and David Latona in Madrid and Helen Reid in London; Editing by Andrei Khalip, Mark Potter and Sharon Singleton)


Continue Reading

Why pay for news and opinions when you can get them for free?

       Subscribe for free now!

By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Posts