Inditex Studies the Creation of a Sustainable Fund to Invest in Startups

Inditex is analyzing the creation of a fund to undertake investments in new companies and technologies within a range of different initiatives and collaborations in the field of sustainability. Specifically, the project could consist of creating a venture capital fund or becoming the main investor in a fund together with other companies, as reported by Bloomberg, which pointed out, however, that the investment would be “relatively small” and that the decision has not yet been made.

In order to continue advancing in its strategy and achieve the raw materials, water consumption reduction, and decarbonization goals that the company has set, Inditex’s commercial teams will continue to have demanding product sustainability criteria and goals to extend to all its garments.

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Under the framework of the Sustainability Innovation Hub, Inditex has made its first investment in a start-up, CIRC

In parallel, the company founded by Amancio Ortega is promoting the Sustainability Innovation Hub, an innovation platform that aims to scale new technological innovations related to materials, fabrics, and manufacturing processes. The Sustainability Innovation Hub supports and promotes new technologies, materials, and processes by exploring new ways to limit the environmental impacts of the company’s products and move towards more sustainable and circular solutions.

In this context, Inditex is developing pilot initiatives, such as textile recycling technologies, with the aim of scaling them across its supply chain, helping to bring these solutions closer to the industry. In fact, under the framework of the Sustainability Innovation Hub, Inditex has made its first investment in a start-up, CIRC, a company that transforms post-consumer polycotton blend fabrics or post-industrial blended fabrics into new fibers through chemical recycling.

In addition, the company has committed to purchase 30% of the future production volume of Infinna – a recycled textile fiber made entirely from textile waste – from Infinited Fiber for more than €100 million. In terms of circularity, the Zara Pre-Owned platform, launched at the end of 2022 in the United Kingdom and soon to be available in the company’s core markets such as France, Germany and Spain, also stands out. Through this platform, Inditex will continue to help its customers to extend the useful life of their Zara garments through donation, repair, or sale between individuals.

Inditex donated 15 million to the global environmental organization Conservation International

Last March, Inditex also announced a donation of €15 million to the global environmental organization Conservation International to expand and scale the work of its Nature Regeneration Fund. With Inditex’s support, the Conservation International Fund will continue to prioritize projects that advance regenerative practices, especially in the cultivation of cotton and other forest fibers. The fund will support agricultural groups, NGOs and other relevant initiatives dedicated to testing, adopting, and scaling regenerative practices that work in harmony with natural systems.

Inditex will allocate part of the funds raised from the #BRINGYOURBAG initiative to these projects. Following the elimination of plastic bags in its stores, Inditex began charging for paper bags and envelopes in 2021 with the aim of incentivizing the use of reusable alternatives. The revenues generated through this initiative are being invested in environmental projects in collaboration with non-profit organizations such as Water.org, WWF, or Action Social Advancement (ASA), among others.

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(Featured image by matthiasboeckel via Pixabay)

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First published in LA iNFORMACION, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.

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