Our ambition is to become a more sustainable company.
Our commitment to sustainability has been embedded into our business practices for over two decades and is rooted in our purpose that ‘through sport, we have the power to change lives.’ To underline this commitment, in 2021, we have further sharpened our focus on sustainability and defined a roadmap for 2025 and beyond that allows us to create – and drive – positive impact. As we continue to pioneer in sustainability, we will continue to move to a comprehensive, consumer-facing sustainable article offering at scale, expand our circular services and work towards achieving climate neutrality (GHG) across our entire value chain. We will continue to empower our employees to become sustainability ambassadors, just as we invite our consumers globally to engage and connect with us on the topic of sustainability. Lastly, we aim to uphold the highest standards also of social compliance across our supply chain.
We believe that achieving our sustainability targets will set us up for future success, yet we know that we cannot achieve these alone. We will leverage our long-term relationships with suppliers to ensure they continue to move with us in alignment with our decarbonization efforts and work closely with our partners to scale innovative materials and recycling technologies.
Being a sustainable business is about striking the balance between shareholder expectations and the needs and concerns of our employees, consumers, suppliers, the workers in our supply chain and the environment. We truly believe that acting as a responsible business – one which is fully committed to respecting human rights – will contribute to lasting economic success.
Our targets for 2025 and beyond
We have a clear roadmap, with clear targets for 2025 and beyond. These targets focus on the topics that are most material to our business and our stakeholders. Highlights include:
- By 2050, adidas will be climate neutral: We have committed to a set of stretch targets that will pave the way to climate neutrality across our entire value chain by 2050. By 2025, we will achieve a GHG emissions reduction of 15% per product, measured against 2017, and achieve climate neutrality (GHG) at our own operations. We will also reduce absolute GHG emissions across our entire value chain by 30% by 2030, measured against 2017. We will achieve this by promoting environmental programs along our entire value chain in close cooperation with our suppliers, using innovative materials and technologies, increasing the use of renewable energy and implementing energy efficiency measures.
- We care about people and the planet: As part of our broader risk management processes, we will increase the scope and application of Human Rights and Environmental Due Diligence (HREDD) efforts. By 2025, we aim to have a system in place to identify and manage high risk human rights issues across the entirety of our value chain.
The following tables below provides an overview of the targets we have set for 2025, supporting our drive for positive environmental and social impact.
Target Year 2025
|Emissions||Achievement of climate neutrality (GHG)|
|Water||15% consumption intensity reduction (m3/ m2)||2019|
|Waste||95% diversion rate||2019|
|Energy||Adoption of renewable energy at strategic Tier 1 and Tier 2 supplier facilities to keep emissions flat||2017|
|Water||40% intensity reduction at Tier 2 supplier facilities||2017|
80% of supplier facilities to achieve for 80% of their input chemicals the highest level of compliance (level 3) with the ZDHC 'Manufacturing Restricted Substances List'
|Wastewater (output)||80% of suppliers that operate on-site effluents plants to achieve ZDHC 'Wastewater Foundational Level’|
|Sustainable article offering||Nine out of ten articles will be sustainable, meaning that they are made – to a significant degree – with environmentally preferred materials|
|Decarbonization||15% reduction of GHG emissions per product||2017|
Target Years Beyond 2025
Entire value chain
|30% reduction of GHG emissions||2017|
|2050||Entire value chain
(from raw material production to own operations)
climate neutrality (GHG)
|Health & Safety||Lost-Time Incident Rate (LTIR) below industry average1;
Zero fatal accidents;
Zero Occupational Illness Frequency Rate (OIFR)
|Social impact (,S-KPI')||90% of Tier 1 strategic suppliers achieve at minimum 4S;
100% of Tier 1 strategic suppliers achieve 3S or better2
|Progressive improvement in compensation, measured by fair wage benchmarks across our strategic Tier 1 suppliers3|
|Gender||Achieve gender wage parity for workers and their supervisors in our strategic Tier 1 suppliers4|
|Entire value chain
(from raw material production
to own operations)
Human Rights and Environmental
|System in place to identify and manage high risk human rights issues in 100% of value chain5|
1 According to US Bureau of Labor Statistics code.
2 The S-KPI measures a set of social indicators, such as accident rates, worker satisfaction and worker empowerment. The target seeks to achieve 100% adherence to/90% overachievement against these foundational social impact measures, with 3S being the minimum expected supplier performance.
3 The fair wage benchmarks include industry wages, minimum wages and living wages. These benchmarks are set and tracked through a 'Fair Labor Association’ Fair Compensation Tool, which has broad industry adoption and is being rolled out progressively to strategic Tier 1 supplier partners.
4 The measurement of wage parity for production line workers and their immediate supervisors (i.e. line leaders) forms part of a broader gender strategy rollout to applicable Tier 1 strategic partners who complete self-assessments to identify and then close gender gaps in operating practices and procedures.
5 In conducting due diligence we seek to identify, prevent, or mitigate potential adverse human rights or environmental impacts, with priority given to addressing the most severe impacts.