Sourcing


A detailed Environmental Sourcing Strategy has been developed that builds on the following three steps:

  • Risk mitigation
  • Performance improvement
  • Collaboration

Target 2015: Extend environmental assessments to selected supplier groups

2011 Milestone

Conduct environmental assessments of high-risk suppliers.

Progress/Performance in 2011

An environmental screening methodology has been applied to all Tier 1 suppliers and all major Tier 2 suppliers, resulting in a list of high-risk and high-impact suppliers. A total of 208 supplier facilities were covered through a combination of Environmental Assessments and Environmental KPI processes.

Target achieved

Additional Comments

Our Environmental Assessment Tool and supplementary remediation guideline continue to be the basis from which we conduct assessments of our suppliers. Annual reviews have been carried out to reflect on the best practices learned in the past year and to update the remediation guideline so that they can be shared with a wider audience. These two tools have been further supplemented by the rollout of our Environmental KPI (EKPI) in mid-2011.

In 2011, we continued to carry out the Environmental Assessment and KPI analysis of core product suppliers. In addition, we also assessed suppliers based on the results of a risk analysis which looked at the nature and type of the production processes, and whether the general site conditions or location presented potential environmental risks or placed pressure on resources.

A total of 208 supplier facilities were covered through a combination of the Environmental Assessment and Environmental KPI processes.

Product type Total Number of Environmental assessments Total Number of Environmental KPI assessments Total Number of Combined Environmental Assessments and Environmental KPI Assessments
Total 114 208 91
Tier 1 Footwear 29 56 24
Tier 1 Accessories & Gear 18 18 13
Tier 1 Apparel 19 98 24
Tier 2 Material Suppliers 48 36 30

Our continued focus on the core group of suppliers has encouraged them to develop their environmental programmes, which supports our drive towards building a sustainable supply chain. Those suppliers who have appointed a dedicated sustainability manager and made a conscious effort to address issues holistically (that is, considering social, health & safety and environment) have scored higher in their EKPI results. So we will be encouraging others to do the same and we will continue to use the EKPI tool to benchmark supplier performance while working with them on areas of improvement. The EKPIs are used as input to the sourcing KPIs and hence directly influence sourcing decisions.

On average, the EKPI result across the suppliers assessed was 2E, on a scale from 1E to 5E.

2012 milestones

  • 5% EKPI improvement over the previous year for 3E and above suppliers; 10% EKPI improvement over the previous year for suppliers below 3E. By 2015, we are aiming for a 30% improvement in average KPI based on the 2011 baseline.
  • Strategic Compliance Plan (SCP, our sustainability mid-term plan for selected suppliers) to contain environmental components on achieving reductions in energy, water and waste.
2011 Milestone

Review environmental audit tools in the light of external initiatives.

Progress/Performance in 2011

Environmental audit tools linked to external initiatives have been reviewed. This is an ongoing process.

Target achieved

Additional Comments

We regularly reflect on how we can adapt our audit tools. This year we have considered the tools developed in the Global Social Compliance Programme, for example.

Target 2015: Establish an industry-wide recognised audit protocol and certification
scheme for dye house facilities in collaboration with other brands and associations

Additional Comments

Although we had no specific milestone set for this area in 2011, the 2015 target has become of critical importance in the context of the ‘Joint Roadmap Towards Zero Discharge of Hazardous Chemicals’ (ZDHC) in the supply chain by 2020. The roadmap was announced in November 2011 by the adidas Group, C&A, H&M, Li Ning, Nike, Inc. and Puma and released for public consultation. It is an ambitious plan, one that sets a new standard of environmental performance for the global apparel and footwear industry. The roadmap includes specific commitments and timelines to realise this shared goal. One of the key initiatives of the roadmap is the establishment of an industry-wide audit protocol for dye houses and printing facilities. Read more about this in the environmental section of our corporate website.

2012 milestones

(primarily related to 'Joint Roadmap Towards Zero Discharge of Hazardous Chemicals')

  • Plan, develop and implement the projects as listed in the roadmap schedule.
  • Further support the creation of a strong brand collaboration with a significant number of members.
  • To reach out further to all stakeholders.

Target 2015: 'Better Cotton' ('Sustainable Cotton') use: 40% by 2015, 100% by 2018 of all
cotton used

2011 Milestone

Introduce ‘Better Cotton’ into the adidas Group supply chain.

Progress/Performance in 2011

‘Better Cotton’ has been introduced into the adidas Group supply chain according to schedule.

Target achieved

Additional Comments

Cotton is an important raw material for the adidas Group. We are a founding member of the Better Cotton Initiative (BCI) which works with organisations from across the cotton supply chain and interested stakeholders to address the negative social and environmental impacts of mainstream cotton farming. This milestone is a first step towards our 2018 goal to use 100% ‘Better Cotton’ (40% by 2015). We have joined the Better Cotton Fast Track Programme in order to facilitate the uptake of BCI in the supply chain and to support joint projects with other member brands. A multi-brand supply chain event was held in Sri Lanka.

In 2011, ‘Better Cotton’ was introduced into the adidas Group supply chain, and communication efforts are ongoing to further increase volumes. In addition, we created a long-term BCI strategy together with our suppliers. In November 2011, a field trip was held with adidas Group managers to India. Read more about the trip on the adidas Group blog.

In 2011, we used 23 tons of BCI cotton lint in fabric produced in India.

2012 milestone

  • Achieve sourcing target of 5% ‘Better Cotton’.

Target 2015: Establish full traceability of more sustainable materials
(apparel products) by 2014

Additional Comments

In 2011, there was no milestone defined. However, we did roll out the use of ‘String’, an online tool that tracks sustainable materials and products used in our apparel business. We extended its use to high-volume suppliers of apparel products with more sustainable materials.

2012 milestones

  • Continue to monitor process and suppliers‘ compliance.
  • Conduct benchmarking study to evaluate software for product tracking.

Target 2015: 10-15% cut in energy emissions by product output at core suppliers
(baseline year 2010)

Additional Comments

While there was no specific milestone set for 2011, we did take an important step towards improved measurement and reporting. In collaboration with the data experts who manage the Group’s Green Company reporting, a new reporting tool was commissioned and implemented. The reporting tool covers both Green Company reporters (our own facilities) and external suppliers. It includes the entire spectrum of environmental parameters, as well as (for suppliers) some production-relevant data. The tool was implemented and around 100 suppliers inserted their 2010 data.

2012 milestones

  • Qualify and verify the reported data from 2010.
  • Continue to roll out the tool to new groups of suppliers.
  • Include all data from the covered suppliers for 2011.
  • Develop an understanding of the baseline.
  • Develop target requests for 2012.

Target 2015: Leather tanneries: 100% of non-Europe tanneries to achieve Leather Working Group (LWG) Silver or above rating (based on the LWG audit protocol). 85% of sourcing
volume (non-European) of leather finish should be certified at Gold level

2011 Milestone

At least 80% of the value of leather sourced from non-Europe tanneries to be from Silver Standard tanneries (based on the LWG audit protocol).

(Correction of the target as stated in the 2010 report)

Progress/Performance in 2011

The target of sourcing at least 80% of non-Europe leather finishing with a Silver Standard or above (based on the LWG audit protocol) was achieved. The result was 97% with 64% of all sourcing volume of leather finishing certified at Gold level.

Target achieved

2012 milestones

  • 99% of non-Europe leather finishing to achieve a Silver Standard or above (based on the LWG audit protocol).
  • 70% of non-Europe leather finishing to achieve a Gold Standard or above (based on the LWG audit protocol).
  • All Rockport leather suppliers to achieve LWG Silver Standard by July 2012.

Target 2015: Implement Green Design requirements for new buildings at suppliers

2011 Milestone

Review design and construction reports prior to approval.

Progress/Performance in 2011

Design and construction reports are reviewed prior to approval.

Target achieved

2012 milestone

  • Adapt and implement green building standards for suppliers.

Downloads

This year our full set of performance data is available only in PDF.

Reporting approach

Our report focuses on the progress we have made in reaching the milestones we set ourselves for the year 2011. Additional information is available on our corporate website.

Read more about our reporting strategy

Suppliers

We are measuring our suppliers' compliance with our Workplace Standards and are meeting our requirements as a sponsor of the London 2012 Olympic Games.

Read about our supplier milestones and targets

Environment

By 2015 we are aiming to reduce our relative environmental footprint by 15% compared with 2010 through making changes to processes across our business.

Read about our environment milestones and targets

Employees

Employee engagement, great talent development programmes and leadership excellence are key to strong business performance.

Read about our employee milestones and targets

Downloads