In 2010, the SEA team conducted 1,350 social compliance audits (including external monitoring audits). The total number of Initial Assessments - this first approval stage for new entry factories - and Performance Audits for our established suppliers was fewer than in 2009. In addition to these audits, suppliers' sites were the subject of multiple other visits by compliance staff to discuss specific remedial issues, to follow up project work or conduct training sessions.
Completing a high volume of Initial Assessments remained a challenge in 2010, particularly in Asia where new factories were proposed in more remote locations and a wide range of countries. There was a total of 447 Initial Assessments, of which 79.4% were in Asia, with China accounting for 33.8% of all assessments conducted. Overall 20.8% of candidate factories were rejected either out rightly, or for failure to remediate threshold issues in a timely manner. See also data on Termination and Rejections.
Audits conducted by external monitors were commissioned by adidas Group entities, including licensees with indirect sourcing models.
In total, there was audit coverage of 58% of all active suppliers. The audit coverage of all active suppliers in region Asia was 74%, with countries like China, India, Indonesia, Thailand and Vietnam showing more than 80% audit coverage.