4,607 stores millions of 11,084 euros in sales countries with 74 sales presence 92,301 employees nnual A Report 2009 Global Reporting 6 Initiative Indicators Letter from the 14 Chairman Inditex business 16 model 18 53 54 163 IP Inditex Performance IC Inditex Commitment Summary of 2009 Customers, shareholders 20 financial year 56 and society Milestones Corporate Social 26 for the year 66 Responsibility Commercial Human 28 concepts 124 Resources International Environmental 46 presence 136 dimension 4 Inditex Annual Report 2009 164 309 LD Legal Documentation Economic and financial 167 report Corporate governance 233 report Activities Report 296 Audit and Control Committee Activities Report Nomination 303 And Remuneration Committee Verification of the audit of 308 GRI indicators 5 lobal G Reporting Initiative Indicators With transparency as the fundamental principle in its relationship with society, Inditex has followed the Global Reporting Initiative indicators since it published its first Sustainability Report in 2002. Using this guide, Inditex attempts to provide detailed, organised access to the infor- mation on its activity to all its stakeholders. Within the general indicators, specific indicators for the textile and footwear sector have been included, identified in the following way: Specific indicator for the sector Specific indicator comment for the sector 6 Inditex Annual Report 2009 Pages 1. STRATEGY AND ANALYSIS 14-15 1.1 Statement from the most senior decision-maker about the relevance of sustainability to the organisation and its strategy. 267-273, 1.2 Description of key impacts, risks, and opportunities. 20-25 Apparel and Footwear Sector Specific Commentary: Where applicable, this should include an assessment of supply chain performance. 2. ORGANISATIONAL PROFILE 17, 175 2.1 Name of the organisation. 28-45 2.2 Primary brands, products, and/or services. 215-231 2.3 Operational structure of the organisation, including main divisions, operating companies, subsidiaries, and joint ventures. 175 2.4 Location of organisation's headquarters. 46-53, 2.5 Number of countries where the organisation operates, and names of countries with either major opera- 223-224 tions or that are specifically relevant to the sustainability issues covered in the report. 225-238 2.6 Nature of ownership and legal form. 46-53, 2.7 Markets served. 223-224 25, 170-173 2.8 Scale of the reporting organisation. 25, 215-231 2.9 Significant changes during the reporting period regarding size, structure. 26-27 2.10 Awards received in the reporting period. 3. REpoRT PARAMETERS REPORT PROFILE 14-15, 175 3.1 Reporting period (e.g., fiscal/calendar year) for information provided. 175 3.2 Date of most recent previous report (if any). 175 3.3 Reporting cycle (annual, biennial, etc.) 310 3.4 Contact point for questions regarding the report or its contents REPORT SCOPE AND BOUNDARY 4-5 3.5 Process for defining report content. 175-176 3.6 Boundary of the report. 175-176 3.7 State any specific limitations on the scope or boundary of the report. 206-211 3.8 Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations, and other enti- ties that can significantly affect comparability from period to period and/or between organisations. 198-205 3.9 Data measurement techniques and the bases of calculations, including assumptions and techniques un- derlying estimations applied to the compilation of the Indicators and other information in the report. N/A 3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement (e.g., mergers/acquisitions, change of base years/periods, nature of business, mea- surement methods). 196-205 3.11 Significant changes from previous reporting periods in the scope, boundary, or measurement methods applied in the report. GRI CONTENT INDEX 6-13 3.12 Table identifying the location of the Standard Disclosures in the report. ASSURANCE 168, 196, 3.13 Policy and current practice with regard to seeking external assurance for the report. 308-309 CORE INDICATOR ADDITIONAL INDICATOR 7 4. GOVERNANCE, COMMITMENTS AND ENGAGEMENT Pages GOVERNANCE 239-263 4.1 Governance structure of the organisation. 255 4.2 Executive capacity of the chair person of the maximum governing body. 240-241 4.3 Number of members of the highest governance body that are independent and/or non-executive members. 60-61, 4.4 Mechanisms for shareholders and employees to provide recommendations or direction to the highest 274-282 governance body. 248-251 4.5 Linkage between compensation for members of the highest governance body, senior managers, and execu- tives, and the organisation's performance. 264-267 4.6 Processes in place for the highest governance body to ensure conflicts of interest are avoided. 251-253 4.7 Process for determining the qualifications and expertise of the members of the highest governance body for guiding the organisation's strategy on economic, environmental, and social topics. 14-17, 67, 4.8 Internally developed statements of mission or values, codes of conduct, and principles relevant to eco- 72-73, 86-89 nomic, environmental, and social performance and the status of their implementation. 60-61 4.9 Procedures of the highest governance body for overseeing the organisation's identification and manage- ment of economic, environmental, and social performance. 251-253 4.10 Processes for evaluating the highest governance body’s own performance, particularly with respect to economic, environmental, and social performance. COMMITMENTS TO EXTERNAL INITIATIVES 267-273 4.11 Explanation of whether and how the precautionary approach or principle is addressed by the organisation. 86-89 4.12 Externally developed economic, environmental, and social charters, principles, or other initiatives to which the organisation subscribes or endorses. 67, 86-89, 4.13 Memberships of associations (such as industry associations) and/or national/international advocacy 122 organisation. STAKEHOLDER ENGAGEMENT 72-73, 4.14 List of stakeholder groups engaged by the organisation. 137-163 72-73 4.15 Basis for identification and selection of stakeholders with whom to engage. 72-73 4.16 Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group. 83-89, 4.17 Key topics and concerns that have been raised through stakeholder engagement. 137-163 5. MANAGEMENT APPROACH AND PERFORMANCE INDICATORS FINANCIAL PERFORMANCE INDICATORS APPAREL AND FOOTWEAR SECTOR-SPECIFIC DISCLOSURE ON MANAGEMENT APPROACH CODE OF CONDUCT 72-79 AF1. Code of conduct content and coverage. AUDIT PROCESS 70-73, 76 AF2. Parties and personnel engaged in code of conduct compliance function. 75-79 AF3. Compliance audit process. GRIEVANCE PROCEDURES 80-82, 89 AF4. Policy and procedures for receiving, investigating, and responding to grievances and complaints. CAPACITY BUILDING 129-130, AF5. Strategy and scope of efforts to strengthen capacity of management, workers and other staff to improve in 138-139 social and environmental performance. BUSINESS INTEGRATION 74-79 AF6. Policies for supplier selection, management, and termination. SUPPLY CHAIN STANDARDS AND PRACTICES PERFORMANCE INDICATORS 8 Inditex Annual Report 2009 CODE OF CONDUCT 74 AF7. Number and location of workplaces covered by code of conduct. AUDIT PROCESS 76 AF8. Number of audits conducted and percentage of workplaces audited. NON-COMPLIANCE FINDINGS N/A AF9. Incidents of non-compliance with legal requirements or collective bargaining agreements on wages. N/A AF10. Incidents of non-compliance with overtime standards. N/A AF11. Incidents of non-compliance with standards on pregnancy and maternity rights. N/A AF12. Incidents of the use of child labour. N/A AF13. Incidents of noncompliance with standards on gender discrimination. N/A AF14. Incidents of non-compliance with code of conduct. N/A AF15. Analysis of data from code compliance audits. REMEDIATION 79 AF16. Remediation practices to address non-compliance findings. BUSINESS INTEGRATION 75-79 AF17. Actions to identify and mitigate business practices that affect code compliance. ECONOMIC PERFORMANCE 122-127, 170 EC1 Direct economic value generated and distributed, including revenues, operating costs, employee compen- sation, donations and other community investments, retained earnings, and payments to capital providers and governments. 270-274 EC2 Financial implications and other risks and opportunities for the organisation's activities due to climate change. 185, 195-197 EC3 Coverage of the organisation's defined benefit plan obligations. N/A EC4 Significant financial assistance received from government. MARKET PRESENCE N/A EC5 Range of ratios of standard entry level wage compared to local minimum wage at significant locations of operation. 83-85 EC6 Policy, practices, and proportion of spending on locally-based suppliers at significant locations of opera- tion. 251 EC7 Procedures for local hiring and proportion of senior management hired from the local community at loca- tions of significant operation. INDIRECT ECONOMIC IMPACTS 179-181 EC8 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement. 123 EC9 Understanding and describing significant indirect economic impacts, including the extent of impacts. ENVIRONMENTAL PERFORMANCE INDICATORS APPAREL AND FOOTWEAR SECTOR-SPECIFIC DISCLOSURE ON MANAGEMENT APPROACH MATERIALS 90-91 AF18. Programmes to replace organic-based adhesives