Pablo Isla also highlighted Inditex’s capacity to stimulate economic growth through strong investment and the value generated from purchases to suppliers, payment of wages and tax contributions.
The Inditex’s Annual General Meeting was held at the company's headquarters in Arteixo -A Coruña. The meeting was chaired by Pablo Isla, Inditex’s Chairman, who reviewed the achievements of the Group in 2012. In his presentation to shareholders, Pablo Isla referred to the growth of the Group over the period, increasing to over 6,000 stores in 86 markets while also expanding its online business to 23 markets.
The Chairman and CEO highlighted the role Inditex plays in stimulating the economic growth, job creation - 10,800 new jobs created in 2012 – and direct investment of c.€1.4 billion. A substantial part of this investment was in Spain, mainly on new logistics facilities, the modernisation of existing platforms and the expansion of the headquarters of Inditex and its retail formats.
Pablo Isla stressed how Inditex's international growth has a direct impact on the Spanish economy in the form of employment and the balance of trade, as well as through the business undertaken with more than 6,600 Spanish suppliers which together invoiced Inditex in excess of €3.4 billion in 2012.
Mr Isla also stressed Inditex’s commitment to sustainability and to its customers. In particular, Pablo Isla mentioned the emphasis on quality. In 2012 this involved nearly 1.5 million tests of garments to ensure compliance with the most demanding product health and safety standards worldwide.
Inditex’s Chairman also drew attention to the more than 3,500 audits carried out on suppliers under Inditex’s Code of Conduct, and highlighted that more than 91 percent of production is manufactured by suppliers with the highest rating. Furthermore, Inditex's environmental strategy passed some key milestones in 2012. These include the adoption of a Zero Discharge commitment across the supply chain, the focus on optimal water management and the capacity building of suppliers to adopt more sustainable industrial processes. Pablo Isla also affirmed that 100% of the Group's stores will be eco-efficient by 2020, reducing water consumption by 50% and electricity by 30%.
In conclusion, Pablo Isla referred to the Inditex model as a framework of values, committed to the creation of value beyond pure financial gain as a guideline to ensure sustainability over the long term.
The Annual General Meeting has approved the accounts for the 2012 financial year, distribution of the income and distribution of dividends. Balance Sheet Revaluation has been approved in accordance with the provisions of Act 16/2012, of 27 December.
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