The Spanish textile company supports a mixed funding fund created to grant low-cost loans to suppliers in emerging markets investing in energy efficiency, renewable energy, water conservation, and reduction of industrial pollution, at a time when the fashion sector faces pressure to reduce its carbon footprint.
As part of a public-private collaboration that, according to CEO Óscar García Maceiras, is the first of its kind, the world's largest fashion retailer has committed $50 million to the fund, named D-TAFS, and led by the International Finance Corporation, the World Bank's branch dedicated to the private sector. The IFC plans to raise $400 million to help small businesses transition to net-zero business models.
This initiative aims to address the problem faced by many suppliers in Asia, the Middle East, North Africa, and Latin America when it comes to making the necessary investments to reduce their environmental impact. D-TAFS will offer them long-term loans under more favourable conditions than the usual market rates, as well as technical assistance to implement the projects.
Participation in D-TAFS is not the first measure taken by Inditex in its supply chain transformation strategy. Already in 2024, the company launched a programme for factories responsible for dyeing, washing, spinning, and weaving its garments to progressively reduce their CO emissions, decrease water consumption, and improve the control of the chemicals used in their processes.