Measuring our own performance
Reporting our carbon emissions
The adidas Group has reported its carbon emissions to the Carbon Disclosure Project since 2007.
Every year since 2008, we have increased the number of sites included in our reporting. Our total Carbon Disclosure Leadership Index (CDLI) score in 2009 was 53, and we were included in the Textiles, Apparel & Luxury Goods sector.
Our score in 2010 was 68 and this time we were included in the Consumer Discretionary sector.
We explain the improvement with the following additional pieces of information in the 2010 results:
- In 2010 we could communicate defined Targets for 2015 which we had not done in previous years
- Our risk assessment was described more comprehensively
- Our reporting and calculation was also described more comprehensively.
Energy audits at Canton and Spartanburg
In 2010, we took part in an Environmental Defense Fund programme where an intern worked with us for ten weeks across the summer. The intern audited the energy we used at two of our North American sites - the Reebok site in Canton, Massachusetts and our distribution centre in Spartanburg, South Carolina. The Yale Business School intern analysed how we used energy at both sites, establishing a baseline from which potential improvements could be made.
Her research skills and business administration background allowed the intern to produce a list of 75 projects we could progress to reduce our energy use. Each project had a business case associated with it, which made it easy for us to judge if the investment was worth it or not. Several of these had no costs associated with them at all.
For example, at our Spartanburg facility, there are several miles of conveyor that transport products around the site. The intern observed that there were long periods in the night when no product would travel on a section of conveyor for two hours, when a setback switch would kick in and turn the conveyor off until the next product. By conducting tests varying the setback interval, we discovered that the setback could be reduced to 15 minutes with no impact to the operation. This change did however significantly reduce the site's energy use. There was no cost involved in making the change: it was as simple as changing a setting on the facility's computer system.
There were several other instances where setting back of night lights, or changing set points on heating and cooling also saved energy with no adverse impact on the business. We are still rolling out some of the 75 projects. We estimate that they will help the Spartanburg facility meet all of its 2015 energy reduction target and will get the Canton site 40% of the way there.
During 2010 we developed and implemented a new data reporting tool. The previous tool, which was used in 2009 and 2010 to record data from 24 adidas Group locations, was not properly designed to cover a bigger number of sites participating in the data recording process.
We developed a new web-based tool with the aim of covering at least 80% of our emissions and resource use of our internal operations. The tool has been designed to ensure a consistent quality review of the data collected. Furthermore, the tool calculates the corresponding carbon emissions, but also all summary indicators needed at facility level, regional level as well as Group level.
Additionally, more locations have been included into the reporting and currently around 75 of adidas Group own locations are reporting into this data base. Thereby the target of covering 80% of our own in-house emissions has been reached.
Following up on targets
The results of those sites that were included in the environmental reporting since 2008 were tracked against the 2015 Green Company targets. The charts below show the actual results per year in comparison with the actual linear target towards the 2015 target.
Household Waste Reduction
The bar charts show that facility management and employees at the respective locations worked successfully towards reaching the 2015 Green Company targets.
- Energy consumption stayed stable, both in terms of energy and carbon per square metre. Several locations have been conducting energy audits and developing detailed action plans that will be implemented throughout 2011. The results of these plans will be seen only in 2011 and 2012.
- Targeted linear reduction for water consumption should have been 5.7%; in reality, 11.8% reduction was achieved, twice as much as anticipated.
- For household waste, the targeted linear decrease towards the 2015 target should have been 7% and we achieved a substantial saving of 16.7% per employee.
- The paper consumption target per employee, set to 20% for 2010, has not been achieved. However, the reduction of paper consumption by 17.7% shows that we are on track towards our linear target for 2015.
While the total results for all locations and types of facilities showed a positive development, there remain areas where individual facility sites will need to improve over the next few years.
A broader summary of Green Company data can be found in our Performance section.
A comprehensive analysis of the Green Company programme and its performance data is supplied in a separate report that is posted on our corporate website.