How Ethical and Sustainable is Zara? - Articles | Attire Media (2024)

Attire investigates the fast fashion giant’s sustainability commitments, production methods, transparency, and more.

By Ashley Chana

It is more likely than not that you have seen a Zara store before. With thousands of retail outlets across the globe, Zara has established itself as a heavyweight in the fast fashion industry, and is one of eight brands owned by Spanish clothing conglomerate Inditex.Popular website Good On You gives Zara a rating of “Not Good” overall, and 2 out of 5 in the three main areas of Planet, People, and Animals. This calls into question the fast fashion brand’s ethical and environmental practices in a number of crucial areas of sustainability.

How Ethical and Sustainable is Zara? - Articles | Attire Media (1)

Pledges and Commitments

Clearly, the negative connotation associated with being a fast fashion brand is something Zara has taken to heart. This can be seen by the numerous pledges and commitments it has made to sustainability over the past few years. In 2012, Zara made a pledge to ensure that all hazardous chemicals would be removed from its operations by 2020. 2016 included the release of the brand’s “eco-friendly” collection called “Join Life”, featuring what it claims to be eco-friendly fabrics. Most recently, in 2019, Zara’s parent company announced a mission to use only sustainable materials by 2025. However, how much of a difference will this actually make when the brand produces more than 800 million garments a year? Regardless of how “sustainable” a material is, it is inevitable that a significant portion of these garments will end up as unnecessary waste. Furthermore, when prominent fast fashion brands such as Zara have such significant output, other brands may feel pressured to increase their own production to keep up with competitors, whether they are similar fast fashion brands or even luxury retailers.

Unfortunately, it does not seem that Zara has lived up to its previous pledges, so it is uncertain whether it will successfully implement its most recent pledge. For example, taking a look at Zara’s FY 2020 Statement on Non-Financial Information, there is no tangible information detailing any results or progress on the commitment it made to remove hazardous chemicals from its supply chain in partnership with Zero Discharge of Hazardous Chemicals. While diving deeper into this report does shed some light on Zara’s partnerships, commitments, and progress in the right direction, some major problems still remain: namely, the sheer amount of products Zara produces and the fact that these items are generally produced in the Global South where garment workers are paid meager wages and work in dangerous conditions.

Mass Production

One of Zara’s main strengths is its agility in churning out new products based on consumer demand. It can take just a few weeks for consumer feedback to reach designers and for the product to then make its way to the retail floor. As trends change faster than ever with the prominence of social media and fashion influencers, fast fashion companies like Zara are forced to speed up its turnaround in order to keep up with ever-changing demand. As a result, the number of times a clothing item is worn before it is thrown out has decreased by 36%, in turn leading to a doubling of clothing production in the past couple of decades.

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The promotion of over-production and mass consumption leads to environmental damage. For example, Zara uses viscose in its production: a material made of wood pulp from sometimes endangered trees. It has been found that viscose production in countries like India has led to water contamination from untreated waste and air pollution. Other plants in China used by Zara have been found to pollute nearby residential communities at three times the permitted level. Zara’s desire to churn out thousands of designs a year directly translates into excessive water usage, energy usage, air pollution, and more. These effects are disproportionately felt in the Global South, where plants are generally located in order to exploit cheaper labour compared to the countries in Global North.

Garment Workers

Another important aspect to consider is the garment workers who produce millions of products for Zara each year. Sustainability is not just a narrow focus on environmental protection: it includes the people that make up the operations of a business.

As mentioned above, some of the factories Zara uses have been proven to release toxic chemicals and waste. Not only does this harm the environment, but it also harms the people working in clothing production facilities. Furthermore, employees often have to work under high-pressure situations. In Tunisia, some workers are timed to the minute to ensure they are fulfilling nearly impossible requirements, like producing 150 pieces in an hour. If this goal is accomplished, workers are “rewarded” with a meager bonus. In 2011, it was found that the contractor responsible for most of Zara’s production in Brazil subcontracted to factories employing migrant workers in sweatshop facilities. Conditions in these facilities were described as slave-like, with some of these migrant workers even being teenagers. Zara disclaimed responsibility by saying it was not responsible for “unauthorized outsourcing”.

In addition to being offered meager wages with barely any benefits, workers are often left unpaid for their work. In 2018, articles of Zara clothing were found stuffed with notes from disgruntled factory workers who were not paid their wages and severance when their factory was shut down. Ethical fashion activists have called out Zara, saying that the company cannot simply pass the blame on to its contractors: it should instead perform due diligence to partner with ethical suppliers and protect the garment workers on whom it relies. With its ever-increasing sales revenues and high profit margins, Zara can afford to make its supplier decisions with more care while also paying living wages. This is one of Zara’s priority goals according to its 2020 Report, but it has yet to be seen how Zara will actually be taking action on these goals.

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Transparency

Zara scored in the 11% to 20% range on the 2020 Fashion Transparency Index in the category of traceability. This relates to the amount of information published regarding suppliers and raw material sourcing. This information is crucial because it can shed light on the working conditions of garment workers, depending on the factory location. Knowing where raw materials come from can also help gauge Zara’s commitment to only using sustainable materials by 2025. Similarly, Zara scored between 31%-40% in the Know, Show, and Fix category and between 41%-50% in the Spotlight Issues category. The first category relates to how companies assess their suppliers for human rights and environmental issues, and how much information they publish related to this. The second category covers Fashion Revolution’s 4 C’s for 2020: conditions, consumption, composition, and climate. These scores seem to conflict with Zara’s score of 81%-90% in Policy and Commitments. While they may be successful in implementing policies and procedures, the results do not seem to be proportionately reflected in the categories that matter.

Greenwashing

The aforementioned environmental and ethical practices shed doubt on Zara’s “eco-friendly” “Join Life” line, which is supposedly sustainable because of the fabrics it uses. It is great to see Zara making an effort, but tackling just one aspect of its multifaceted issues is not enough. What about the garment workers? The local pollution in developing countries? The thousands of clothes that will still end up in landfills? Zara also continues to use materials such as wool, leather, and down in its regular collection, which indicates that it also has progress to make with animal welfare. One line that uses sustainable materials is not a band-aid solution that can cover up Zara’s deep-rooted issues in numerous aspects of its business model. This type of greenwashing covers up other issues that are highly prevalent, and consumers need to understand that one “eco-friendly” line is not a proper solution. There is a lot more Zara can and should do to follow up on its various pledges and commitments.

While Zara has taken sustainability issues to heart in recent years, as demonstrated by its commitments and targets, partnerships with various organizations such as Closing the Loop, and increased reporting, it still remains to be seen whether these programs will result in true sustainable change or are just a greenwashing tactic.

Until true action is taken, the countless initiatives Zara implements are, unfortunately, not completely impactful. It is difficult not to see these programs as greenwashing when Zara is not inclined to change the most harmful aspects of its business. Until then, consumers should beware of its sustainability claims, monitor Zara’s progress over the next few years, and push for accountability and transparency.

ABOUT THE AUTHOR

Ashley Chana is a fourth-year student at the University of British Columbia. She is passionate about both the fashion industry and sustainable living: Ashley writes about the intersection of these topics and how we can implement change in our day-to-day lives. She also profiles sustainable brands and designers to raise awareness about environmentally conscious options, and brings light to the issues in the fashion industry.

Connect:Instagram|LinkedIn

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How Ethical and Sustainable is Zara? - Articles | Attire Media (2024)

FAQs

What is the ethical consideration of Zara? ›

Zara's owner, the Inditex Gropu, has been accused multiple times of greenwashing, exploitation, and environmental distraction. Yet, still, many consumers have absolutely no clue how terrible this highly unsustainable business model actually is to people and the environment.

Does Zara support sustainability? ›

WE HAVE SET DOWN AMBITIOUS SUSTAINABILITY GOALS TO BE ABLE TO ADVANCE IN THE TRANSFORMATION OF THE TEXTILE INDUSTRY, IN COLLABORATION WITH THE SCIENTIFIC COMMUNITY, SOCIAL AND ENVIRONMENTAL ORGANISATIONS AND OTHER COMPANIES IN THE SECTOR.

Does Zara have an environmental policy? ›

Generate recyclable information. Use of ecological fabrics, like organic cotton. Zara Supports ecological agriculture and uses organic cotton in the production of selected items of clothing (100% cotton, completely free of pesticide, chemical agents and bleaches).

How does Zara affect the environment? ›

Put simply, brands like Zara are responsible for perpetuating a culture that encourages people to consume as much clothing as possible, allowing them to continue producing tonnes of clothing every day which likely will end up in a landfill with an extremely short lifecycle.

What is the biggest threat to Zara? ›

What is the biggest threat to Zara?
  • Competition: China's fast-fashion giant, Shein, is the world's biggest fashion retailer with a purely online presence. ...
  • Price War: Fast-fashion, Zara's primary niche, brings the latest trends from the ramp to the customers quickly and at low costs.

What is the Zara brand controversy? ›

Controversy related to antisemitism

A swastika design was made in a Zara bag which was noted by a customer due to which Zara withdrew products that had this sign. In 2011 it was selling t-shirts that closely resembled uniforms worn by Jewish in the concentration camps.

What is Zara doing in terms of sustainability? ›

Inditex is firmly committed to reaching Net Zero in 2040 through the reduction of carbon emissions across our supply chain and across all other areas of our business.

What are the three pillars of sustainability in Zara? ›

For the purpose of this thesis, the following three main areas of sustainability will be focused on: profit, environment, and people.

Does Zara have a sustainable competitive advantage? ›

Apart from being agile, its supply chain and production system are efficient and designed to deliver results faster. Another attractive aspect of ZARA's business model is the in-store experience. These stores are designed to offer a great in-store shopping experience and create highest satisfaction for customers.

What is the diversity policy for Zara? ›

He added: “Disability inclusion in the workplace is a core component of our commitment to people. Diversity, fairness and inclusion are values we all embrace, values we pursue day-to-day, in order to have an impact within Inditex as well as all around us: our pledge is to design opportunities for everyone.”

What does Zara do for the community? ›

All clothing collected is donated to support the non-for-profit organisations with whom we collaborate. Clothes will be donated, recycled and transformed into new fabrics, or they will be marketed in order to finance their social projects.

How does Zara affect climate change? ›

Over the course of a year, Zara alone produces about 840 million garments for its 6,000 stores worldwide. One kilogram of fabric production emits about 23 kilograms of greenhouse gases, so the impact of Zara's yearly fabric production on greenhouse gas emissions is significant.

How is Zara environmentally sustainable? ›

Here are a few commitments made by Zara on their website: In 2022, Zara promised to use 100% renewable energy in their own operations. In 2023 they promise to eliminate single-use plastics for customers. By 2025 they plan to introduce more sustainable 100% linen and sustainable or recycled polyester.

What are the 3 most critical factors of Zara? ›

Zara's Three Success Factors: Speed, Speed, and Speed.

What is the disadvantage of Zara? ›

The biggest disadvantage of Zara's supply chain is that since Zara owned all the channels of supply chain, it becomes difficult to expand to far location as it is very expensive to distribute such products.

Does Zara violate human rights? ›

Alarmingly, Zara is one of many fashion retailers that have neglected the rights of its workers, in exchange for lower production costs and increased sales. As an internationally recognised brand, Zara should not allow such degrading and cruel working conditions for its employees down the supply chain.

Is Zara an ethical brand? ›

Is Zara Ethical? No, Zara is not ethical. It has a Code of Conduct designed for its manufacturers and suppliers and one laid out to abide by responsible practices. These standards guarantee that the brand is against forced or child labor and supports fair wages and safe working conditions.

What are the recommendations for Zara to improve? ›

The recommended options that should be applied by Zara are to improve distribution by opening regional distribution centers and to achieve increased online sales volume by creating a unique selling point.

Why is Zara different from other brands? ›

Zara's strategy is to offer a higher number of available products than its competitors. While most clothing retailers manufacture and offer to the public for sale 2,000 to 4,000 different articles of clothing, Zara's production has been markedly higher, at over 10,000 pieces produced per year.

What problem does Zara solve? ›

The company focuses on responding to current fashion needs rather than forecasting fashion trends for a distant future: 85% of its production is done during the current season. By doing so, Zara can avoid overproduction, an issue its rival H&M also faces, and become more sustainable.

What is Zara main strategy? ›

Zara's business strategy relies on four key pillars: Flexibility of supply. Instant absorption of market demand. Response speed.

What is the brand reputation of Zara? ›

In 2019, Zara was ranked 29th on global brand consultancy Interbrand's list of best global brands. Its core values are found in four simple terms: beauty, clarity, functionality and sustainability.

Is Zara to contribute to the sustainable development of society and that of the environment with which we interact? ›

The Zara vision statement is "to contribute to the sustainable development of society and that of the environment with which we interact." A company's vision statement reflects its long-term goals and how it sees itself in the distant future.

How does Zara treat their workers? ›

Zara again scores “Not Good Enough” for labour. Half of its final stage of production is undertaken in Spain, a medium risk country for labour abuse, and the brand received a score of 51-60% in the Fashion Transparency Index.

What is Zara's mission statement? ›

Zara has an ongoing commitment to its customers around the world in providing an excellent customer experience to all. As part of these efforts, we are committed to providing a website that is accessible to the widest possible audience, regardless of technology or ability.

What has been Zara's approach to achieving and sustaining competitive advantage? ›

Overall, Zara's approach to achieving and sustaining competitive advantage is based on speed, flexibility, and customer-centricity.

What are the strengths of Zara? ›

Strengths
  • Speed to Market: Zara's fast-fashion model enables the company to quickly adapt to changing fashion trends and customer preferences. ...
  • Vertical Integration: Zara's control over its entire supply chain, from design to distribution, allows for better coordination, reduced lead times, and increased flexibility.

What are the 4 sustainable competitive advantages? ›

The idea here is that if a firm is to maintain sustainable competitive advantage, it must control a set of exploitable resources that have four critical characteristics. These resources must be (1) valuable, (2) rare, (3) imperfectly imitable (tough to imitate), and (4) nonsubstitutable.

What is greenwashing Zara? ›

Zara. Another fashion brand accused of greenwashing is Zara. In 2022, the brand introduced a limited-edition line of “sustainable clothing” made from polyester generated from captured carbon emissions.

Does Zara underpay their workers? ›

Fashion firm Zara is the latest retailer to reveal it has underpaid its workers by an estimated $2.6 million, and is undergoing a remediation program to pay back impacted workers.

What are the key strategies of Zara have led the brand to success What is Zara's biggest competitive advantage over other retailers? ›

The Zara brand strategy

Its core values are found in four simple terms: beauty, clarity, functionality and sustainability. The secret to Zara's success has largely being driven by its ability to keep up with rapidly changing fashion trends and showcase it in its collections with very little delay.

Who is Zara main audience? ›

Who is Zara's target market? The Zara target market includes women and men, mainly younger adults in the age range of 18 to 40. This places the Zara segmentation strategy as largely focusing on Millennials and Gen Z, who are both fashion conscious and tech savvy.

How has technology affected Zara? ›

Zara has launched its innovative Store Mode functionality across its ecommerce and in app, helping to connect its stores and digital platforms in the UK. In September 2020, the fashion retailer launched Store Mode in several Spanish cities, aiming to make shopping easier, safer and more sustainable.

How much waste does Zara produce each year? ›

The total waste generated by Inditex in 2021 was 20.4 thousand tonnes, an increase of 10.4% over 2020. Of the total waste generated by the company, 65% of the waste was cardboard and paper waste (13.25 thousand tonnes).

What is the most sustainable fashion brand in the world? ›

First on our list of the most sustainable fashion brands is Wholesome Culture, who is on a mission to make the world a kinder and more sustainable place with their eco-friendly apparel. Their designs are printed with eco-friendly water-based ink, made from 100% organic cotton, recycled plastic bottles and bamboo.

How does sustainable fashion affect the environment? ›

Sustainable clothing uses biodegradable components from natural or recycled fibers. These materials grow with no pesticide or fertilizer use, consume less energy and water, and employ no chemical treatment, thus reducing the overall carbon footprint of these brands.

How environmentally sustainable is fast fashion? ›

Critics assert that fast fashion apparel cannot be sustainable by its very nature. The poor quality of the material makes it hard to recycle, even if the brands commit to recycling a certain percentage of used or unsold products.

What is Zara best known for? ›

ZARA (Spanish: [ˈθaɾa]) is a Spanish multi-national retail clothing chain. It specialises in fast fashion, and sells clothing, accessories, shoes, beauty products and perfumes. The head office is in Arteixo, in A Coruña in Galicia.

What are Zara's key resources? ›

Zara's Key Activities

Product delivery and shipping. Maintenance of headquarters, retail outlets, and online platform. Advertising and market. Product development and design.

What are some important facts about Zara? ›

Zara is a Spanish clothing retailer based in Galicia, Spain. Founded by Amancio Ortega in 1975, it is the flagship chain store of the Inditex group, the world's largest apparel retailer. The fashion group also owns brands such as Pull&Bear, Massimo Dutti, Bershka, Stradivarius, Oysho, Zara Home and Uterqüe.

What is ethical consideration in clothing? ›

“The general definition of ethical fashion, is fashion that aims to reduce the negative impact on people, animals, and the planet. Producing an item of clothing involves design, labour, and materials. Ethical fashion is kind to the planet and people every step of the way, from seed to garment.”

What ethical considerations are there in the production of clothing? ›

7 Main Ethical Issues In The Fashion Industry
  • Low Wages. There is a reason why influential fashion brands depend on developing countries to fulfil their labour requirements. ...
  • Child Labour. ...
  • Environmental Concerns. ...
  • Animal Cruelty. ...
  • Body Shaming. ...
  • Health And Safety Risks. ...
  • Demand For Blood Diamonds.

What are ethical concerns? ›

What is an ethical issue? Ethical issues are defined as situations that occur as a result of a moral conflict that must be addressed. Thus, ethical issues tend to interfere with a society's principles.

What is the ethical issue of fast fashion? ›

Unsafe Labor Conditions

In order to mass produce so many inexpensive garments so quickly, items often aren't ethically made. Factories are often sweatshops where laborers work in unsafe conditions for low wages and long hours. In many cases, children are employed and basic human rights are violated, reports EcoWatch.

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