Inditex, owner of Zara, has considerably increased the use of air transport to take clothing from factories in India to its logistics center in Spain, in order to avoid delays in shipments, according to commercial data, sector experts and investors.
This change raises questions about how the world’s largest publicly traded fast fashion retailer is moving toward its goal of halving its “scope 3” emissions, or indirect emissions, since air travel produces emissions. significantly higher carbon emissions than maritime transport.
Apparel retailers – and exporters in general – have increased their use of air transport since insecurity in the Red Sea has disrupted global shipping routes. Unpublished data and analysis shared with Reuters on Inditex shipments from India and Bangladesh, two of its main supplier countries, offer a close-up view of this change and its implications for the fashion industry’s climate goals.
Inditex made 3,865 airfreight shipments from India in the 12 months to the end of August this year, up 37% from a year earlier, according to a Reuters analysis of shipping records from trade data provider Import Genius. Of that figure, 3,352 were sent since January 1, after the increase in attacks on container ships in the Red Sea. The share of air freight in Inditex’s shipments from India rose to 70% in the first eight months of this year, from 44% last year, according to an analysis of customs data that Swiss NGO Public Eye shared with Reuters. In the case of Bangladesh, that percentage rose to 31% from 26%, according to its data. In response to questions from Reuters about air transport data, Inditex said it uses sea transport for the “vast majority” of products from Asia, but in exceptional circumstances, such as the Red Sea crisis, it may use other modes. of transportation. Inditex states that half of its suppliers are located in countries close to its main European market, such as Morocco, Portugal, Spain and Türkiye. Its top 10 countries of origin also include Bangladesh, China, Pakistan and India. Most of Inditex’s air shipments from India to Spain arrive in Zaragoza, a key logistics center for Zara. The brand accounts for about two-thirds of cargo activity at the local airport, according to a union source.
Airport data shows that cargo movements increased by 39% between January and September compared to the same period a year earlier. Its operator does not reveal company-specific data. Data from ICEX Spain Export and Investment showed that the global value of fashion items brought to Spain by air increased by 28% in the year to September compared to the same period in 2023, which points to a more widespread trend.
Emissions target Increased use of air freight could raise Inditex’s transport emissions, which have soared 37% in the 12 months to January 31 compared to 2022, according to Reuters calculations based on annual reports of the group.
Transport accounted for 12.1% of its total emissions in 2023, up from 8.4% in 2022, although Inditex said changes to its reporting methodology meant 2023 figures were not comparable to 2022.
Inditex’s goal is to halve “scope 3” emissions—which includes transportation—by 2030 compared to its 2018 level. Last year, however, these emissions amounted to 16,418,450 metric tons of CO2 equivalent, 0.2% more than in 2018.
An Inditex spokesperson said the company is working hard to reduce emissions through measures such as alternative fuels, route optimization and occupancy levels. Rising transport emissions would force Inditex to seek further reductions in other parts of its supply chain, such as production and materials processing, to meet its target.
At its annual shareholders meeting in July, a group of investors from the Shareholders for Change network asked management to provide detailed figures on its air transport emissions and present strategies to reduce them.
But other investors told Reuters they supported Inditex’s use of air freight to avoid shipping delays that could force it to resort to costly discounts to clear excess stock. “In the short term, we would prefer that Inditex do what is necessary to continue supporting the profitability of the business and its ability to continue generating cash, as long as it continues to be able to reduce its global greenhouse gas emissions,” said Nick Clay, portfolio manager. of Redwheel Income Strategy in London, which owns Inditex shares.
With information from Reuters.
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