Stakeholder engagement

Target 2015: Strategic suppliers to have transparent reporting practices about their sustainability performance in place

2011 Milestone

Address external requirements for transparency and disclosure:

  • Fulfil LOCOG requirements and contract obligations on supplier disclosure and SEDEX uploads.
  • Publicly disclose Olympic supplier list from mid-2011 and update quarterly to ensure it is current and accurate.
Progress/Performance in 2011

As a local sponsor of the 2012 London Olympic Games, the adidas Group comprehensively met the requirements as outlined in the Sourcing Code of the London Organising Committee of the Olympic and Paralympic Games (LOCOG).

Beyond these requirements we disclosed our Olympic supplier list to the public and updated it quarterly. We also developed and delivered a legacy programme of outdoor sports facilities for local communities in the UK and ran the first ever sports event-focused stakeholder dialogue.

Target achieved

Additional comments

Engaging openly with stakeholders and establishing leadership approaches for transparency and disclosure is a fundamental part of our sustainability strategy.

Being so visible at major sporting events draws attention to how we do business, so the adidas Group has taken a proactive approach in engaging with stakeholders about its corporate responsibility practices for the London 2012 Olympic Games. The approach has included specific actions:

  • Meeting the requirements of the LOCOG Sourcing Code and disclosing our Olympic supplier list to the public
  • Providing a sporting legacy to the UK and delivering a grassroots programme to the community
  • Seeking direct dialogue with UK-based labour and human rights groups about how events are organised and how the parties involved manage their wider responsibilities when it comes to protecting human or labour rights.

Meeting the LOCOG Sourcing Code

The London Organising Committee for the Olympic Games and Paralympic Games (LOCOG) issued a Sustainable Sourcing Code to its partners. The code clearly outlines four key principles for commercial partners to follow:

  • Ensuring responsible sourcing
  • Using secondary materials
  • Minimising embodied impacts
  • Using healthy materials

Ensuring responsible sourcing

All direct suppliers and sewing subcontractors selected to manufacture LOCOG-licensed products:

  • Are to meet the adidas Group Workplace Standards
  • Are fully disclosed in SEDEX (Supplier Ethical Data Exchange)
  • Are subject to regular labour, health and safety compliance inspections by adidas Group SEA compliance staff
  • Meet a defined key performance indicator (KPI) which rates a factory's compliance performance
  • Have a management plan in place that details a factory's compliance programme and future targets
  • Are publicly disclosed via the adidas Group website.

Using secondary materials

Overall, 90% of the adidas Games products contain sustainable content including 100% of athlete village-wear, 100% volunteer-wear, and 73% of on-field performance products. The London Volunteer's uniform is a prime example. All items in the volunteer package contain, at a minimum, 35% sustainable content, with three-quarters of the volunteer clothing and accessories containing more than 50% sustainable content. Additionally, all volunteers will be wearing the London version of the popular Fluid Trainer shoe. The Fluid Trainer is technically advanced in the area of sustainability, with pattern innovations and sustainable content that impact the whole shoe. The shoe contains recycled polyester mesh, recycled EVA (ethylene vinyl acetate), as well as recycled rubber, and has achieved a 70% or greater pattern efficiency for every piece of the upper.

Minimising embodied impact

All direct suppliers selected to manufacture adidas-branded LOCOG-licensed products and their major materials suppliers have undergone environmental assessments of their sites. Assessments are used for the development of individual factory improvement programmes. Factories' progress is tracked regularly.

Using healthy materials

LOCOG-licensed products comply with the adidas Group restricted substances list and are in compliance with standards listed in the LOCOG Sourcing Code.

Leaving a legacy to the UK community

As a sponsor of the London 2012 Olympic Games, we wanted to provide a sporting legacy to the UK that would get more people active and break down barriers to sport and physical activity. We engaged with local and central government, organisations like the Youth Sports Trust, Sport England, and LOCOG in the development and rollout of the adiZone programme. The adiZone programme revolves around creating innovative multi-sport venues that provide a social platform for members of the community to do a range of activities.

By end of 2011 the company has built over 50 adiZones spanning across every region in England equipped with sustainable facilities for both able-bodied and disabled users. Brand adidas is determined to increase the number in the UK by setting up more than 100 adiZones across the country by the time the Games start. The goal is to make sports participation accessible by offering everybody a chance to get active. Each adiZone is a free-to-use, permanent "outdoor gym-like" installation measuring 625sq metres and is open 365 days a year, incorporating basketball, football and tennis areas, a climbing wall, an outdoor gym and an open area to encourage dance, aerobics and gymnastics, set up by the local communities together with adidas.

Stakeholder dialogue 2011

Building on previous engagements, in May 2011, the adidas Group hosted a stakeholder dialogue on the topic "Respecting Labour Rights in Global Supply Chains: The Impact of Major Sporting Events". The dialogue included representatives from UK labour rights and human rights organisations, from the London Organising Committee for the Olympic Games and Paralympic Games (LOCOG), SRI analysts and senior staff from the adidas Group.

The feedback from the meeting helped to shape our approach to managing our supply chain for major sporting events, including the London 2012 Olympic Games. The dialogue was hosted by an independent facilitator. A paper summarising views from the meeting is available on the adidas Group sustainability website.

2012 milestones

  • To share the findings from the stakeholder dialogue with sports events organisers to raise the sustainability bar for future events where the adidas Group is a sponsor.
  • To further promote transparent reporting practices about our suppliers' sustainability performance, we will identify key jurisdiction where public listed supplier companies are required to conduct non-financial (ESG) reporting; we will start engagements with partners who are listed in those market.

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