Zara and H&M Face Scrutiny Over Brazilian Cotton Sourcing Practices

Inditex, the parent company of the global fashion retailer Zara, is under fire for its cotton sourcing practices following a damning report by NGO Earthsight. The report links Brazilian cotton, certified by Better Cotton for sustainable practices, to serious environmental and social violations, including illegal deforestation, land grabbing, and violence against local communities. This cotton has reportedly been used by both Zara and its competitor H&M.

In response to the allegations, Inditex has demanded increased transparency from Better Cotton, criticizing the organization for the lack of clarity in its certification and traceability processes. Inditex’s concerns stem from an internal investigation by Better Cotton initiated in August 2023, with results that were expected by March 2024 but have yet to be disclosed. “The allegations represent a serious breach in the trust placed in Better Cotton’s certification process by both our group and our product suppliers,” stated Inditex in a letter to Better Cotton CEO Alan McClay.

Better Cotton, headquartered in Geneva, is a prominent certifier of sustainable cotton and claims to foster improved agricultural practices and better working conditions. However, the effectiveness of its certification system is now in question following Earthsight’s findings, which allege nearly a million tonnes of tainted cotton linked to ecological and human rights abuses.

H&M has also acknowledged shortcomings in its sourcing practices, reflecting a broader industry challenge in ensuring ethical supply chains. The fashion industry, including major players like Inditex and H&M, faces increasing scrutiny to uphold responsible sourcing standards and prevent environmental degradation and social injustices in their operations.

The Earthsight report calls for stricter regulations and comprehensive reforms to address the issues, suggesting that voluntary certification schemes and consumer choice are insufficient to tackle the systemic problems in cotton production. It also highlights the need for robust legislation, like the EU’s upcoming Corporate Sustainability Due Diligence Directive and the new EU Deforestation Regulation, which currently do not specifically address cotton.

This controversy underscores the urgent need for the fashion industry to enhance the transparency and accountability of its supply chains, particularly in cotton sourcing, to mitigate its impact on the environment and society.