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Industria de Diseno Textil

IDEXY

Consumer Discretionary

1

exclusion reason

1 theme

Labor Rights (1)
IDEXY Consumer Discretionary Current as of March 2026

This page is part of our public exclusion list — a transparency tool that shows which companies we screen out and why. It is not investment advice, and it is not an accusation. But it is subject to change as our understanding of the facts evolves.

Working Conditions
Since Aug 6, 2024

Inditex, the parent company of brands including Zara, operates a global supply chain of thousands of factories. Multiple independent investigations over more than a decade have documented a pattern of dangerous working conditions in these facilities. A 2023 report by the Business & Human Rights Resource Centre linked the company to factories in Myanmar where workers faced excessive heat, inadequate ventilation, and forced overtime. In 2021, the Clean Clothes Campaign documented similar conditions in Turkish factories supplying Inditex, including blocked fire exits and structural safety risks.

This pattern extends to wage-related exploitation that compounds unsafe conditions. The same 2023 BHRRC report noted that workers in Myanmar factories producing for Inditex brands were paid below the legal minimum wage, trapping them in poverty and making them unable to refuse unsafe overtime. While Inditex has public commitments to its Code of Conduct for manufacturers, these recurring, geographically dispersed incidents indicate systemic enforcement failures in its supply chain oversight.

Source:
ECIC
Research Sources 1 organization
Ethical Capital
Internal

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Companies appear on our exclusion list based on our investment judgment — not because they've done anything illegal. This is a difference of values and opinion, not an accusation of wrongdoing. Exclusion does not constitute a recommendation against investing in any company, and absence from the list does not constitute a recommendation to invest.

This information is provided for educational and transparency purposes only and should not be relied upon as investment advice. Data is drawn from independent watchdogs, NGOs, government registries, and Ethical Capital's ongoing research — see Research Sources for the full list.

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