Inditex sees surge in transport emissions amid shipping disruptions

Zara owner Inditex reported a 10% rise in transport emissions in 2024, driven by increased air freight to avoid shipping delays caused by Red Sea disruptions. While the retailer made progress in reducing sourcing-related emissions, it faces challenges in meeting its long-term climate targets.

Zara owner Inditex's emissions from transport jumped by 10% in 2024 as the fast-fashion retailer used more flights to move clothes from production centres in Asia to its logistics hub in Spain and into stores.

The increase highlights the impact of greater air freight use as attacks on container ships in the Red Sea have diverted vessels from the Suez Canal route to a much longer route around Africa to transport products from Asia.

Companies' emissions from shipping have also increased as a result.

In its annual report published on Friday, Inditex said emissions from upstream transportation and distribution were 2,614,230 tonnes of carbon dioxide equivalent (CO2eq) in its 2024 financial year ending January 31, up 10% from 2,378,464 tonnes in 2023.

Inditex did not give a reason for the increase in the report. The company did not immediately reply to a request for comment.

Reuters reported in November that Inditex sharply increased its use of air freight to bring products from factories in India and Bangladesh, two key manufacturing hubs, to its Zaragoza logistics hub in Spain to avoid shipping delays that could hamper its ability to get on-trend clothes into stores fast.

Inditex has previously said it is working hard to reduce transport emissions through measures like alternative fuels and optimising routes and container occupancy levels.

The retailer, which also owns brands including Bershka, Pull & Bear and Massimo Dutti, on Wednesday reported a 10.5% currency-adjusted increase in sales for 2024, to 38.6 billion euros ($42.06 billion).

Its overall greenhouse gas emissions were flat in 2024 compared to 2023, thanks to a decline in emissions related to product sourcing, its single biggest emissions category.

Emissions from "purchased goods and services" declined by 6%, to 6,696,995 tonnes of CO2 equivalent from 7,102,152 tonnes, which Inditex said was thanks to buying more textiles that have a lower environmental impact. Inditex said 33% of its fibres and raw materials came from recycling of post-consumer waste in 2024, up from 18% in 2023.

However, the retailer made no progress towards its target of cutting indirect emissions, which includes the purchased goods and services category.

Inditex has a target of cutting its "scope 3" emissions - those generated in its supply chain, for example by supplier factories, shipping products, business travel and post-consumer waste - by 51% by 2030 and 90% by 2040, compared to 2018 levels.

Inditex's scope 3 emissions in 2024 were 13,427,762 tonnes of CO2 equivalent, a slight increase on the 2018 level of 13,421,935, according to the annual report.

Milestones published in the report showed that by 2030 it will need to slash that number to 4,916,311 tonnes, and by 2040 to 1,003,329 tonnes to meet the target approved by the Science Based Targets Initiative, a global nonprofit that assesses and approves companies' climate targets.

($1 = 0.9178 euros)

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