SOCIAL COMPLIANCE, TRACEABILITY AND ENVIRONMENTAL SUPERVISION

SOCIAL COMPLIANCE, TRACEABILITY AND ENVIRONMENTAL SUPERVISION

In order to produce for a brand within the Inditex group, both the manufacturer and the sub-manufacturers and suppliers must be registered in the Extranet system and have a valid social audit score. If the company is being registered in the system for the first time, a preliminary audit is performed first. In this preliminary audit, the company´s social compliance capacity is measured with the main lines. If the substances specified at the bottom are detected, the company cannot undergo a preliminary audit. This means that the company cannot participate in the Inditex system for at least 6 months.

LACK OF A WORK PERMIT, FIRE DEPARTMENT REPORT, BUILDING USE CERTIFICATE INABILITY TO MEET 100% INSURANCE STATUS VIOLATION OF TRANSPARENCY (PROVIDING INCORRECT DOCUMENTS OR INFORMATION) SSI DEBT PAYMENT BELOW THE MINIMUM WAGE CHILD WORKER - ILLEGAL WORKER DETECTION

If no non-compliance is detected in the preliminary audit, the company is registered in the system. After a certain period of time after the preliminary audit, the main audit of the company is carried out. The main audit is carried out under Inditex COC. As a result of the main audit, the firm receives A, B,C, D and block scores.

A AND B scores are the highest scores and the company can produce Join Life.

If the company receives a C score as a result of the audit, it is updated to the CCAP (corrective action planned C) score either by itself or by the main manufacturer as a sponsor. In this case, the company is able to produce Join life for 6 months. at the end of 6 months, the score is updated by conducting a follow-up social compliance audit of the company. The expectation in the follow-up audit is that the company will receive an A or B score. If the company receives C again the follow-up audit; the company loses the right to produce Join Life.

If the company´s main social compliance audit score is DCAP; The company´s audit score is updated to the DCAP score after the company itself or the main manufacturer is sponsored by the company. In this case, the company is only able to produce orders that are outside of Join life to the companies that sponsor it. at the end of 6 months, the score is updated by conducting a follow-up social compliance audit of the company. The expectation in the follow-up audit is that the company receives an A or B score. If the company receives D the follow-up audit again; the company is blocked.

TRACEABILITY

In addition to social and environmental audits, “Traceability” audits are carried out by Inditex, in which the traceability of orders is audited. During the audits, pieces, waybills and invoices are checked and verified (verified).