Effective risk mapping helps us identify, prioritize, and address social, human rights, and environmental risks across our supply chain. We combine ongoing monitoring and improvement processes with tools that enable us to respond quickly when critical issues arise, helping to reduce potential impacts on workers, communities, and the environment.  

Our risk mapping draws on a range of information sources, including government databases, engagement with civil society organizations, trade unions, employer associations, and direct feedback from workers. We regularly assess both the countries we source from and the suppliers we work with to better understand risk exposure and determine where enhanced monitoring, remediation, or support may be needed. 

Key elements of our risk mapping approach include: 

• Country-level risk assessment: We conduct country-level due diligence to assess labor, human rights, and environmental risks. Countries are categorized according to risk levels, with suppliers operating in higher-risk locations subject to more frequent monitoring and audits. 
• Factory-level risk assessment: We evaluate supplier facilities through audits, KPI assessments, and factory risk-rating analysis. The results help determine the frequency of follow-up audits and engagement with suppliers. 
• Crisis Protocol: Enables business partners and suppliers to report serious incidents or high-risk issues. Depending on the nature of the concern, we may initiate site visits, audits, investigations, or other forms of engagement, on a case-by-case basis. 
• Monthly Executive Reporting: Significant issues are reviewed through regular executive reporting processes, which support timely decision-making and, where necessary, additional corrective actions. 
• Grievance Mechanisms: Worker feedback gathered through hotlines, digital platforms, and independent reporting channels is a critical source of real-time risk data. These mechanisms help us identify emerging issues and inform our risk assessment, escalation, and remediation processes. 

ONBOARDING AND TRAINING SUPPLIERS  

All potential new suppliers are assessed by the SEA team before production can begin. Our Sourcing teams can only place orders with a new supplier if the SEA team has given approval. If factories do not meet our standards, we reject them. Where issues are identified, suppliers are required to implement corrective actions within a defined timeframe before they can be approved. This process helps ensure that suppliers have the systems and capabilities needed to meet our expectations.   

To support suppliers in upholding our standards, we invest in targeted training and capacity building. These programs help suppliers strengthen workplace practices, improve compliance, and build safe, responsible, and effective operations. Training is tailored to different stages of supplier development and follows a structured approach covering Fundamental Fundamental Training includes introductory training on the adidas Workplace Standards, the new factory approval process and the SEA operating guidelines., Performance Performance Trainingincludes detailed training on specific issues related to labor, health, safety and environmental practices, as well as initial assessment monitoring methods., and Advanced Advanced TrainingIncludes training in the KPI and rating tools, sustainable compliance planning and supplier self-assessment methods. levels.  

MONITORING SUPPLIER PERFORMANCE (AUDITS) 

Following onboarding, suppliers are regularly assessed to ensure compliance with our Workplace Standards and to support continuous improvement. These assessments help us identify and address risks to workers and the environment across our supply chain. The table below shows the number of social and environmental compliance assessments carried out across the supply chain each year. For more information on our monitoring approach, see the SEA Audit Manual. 

COMPLIANCE AUDITS conducted (social and environmental)

Measuring supplier social performance (SI-KPI): Our approach to direct suppliers is built on a long-term vision of self-governance, where suppliers are responsible for managing their own social compliance and human rights performance. To support this, we assess working conditions through audits, remediation activities, and ongoing engagement. In 2026, adidas introduced the Social Impact Key Performance Indicator (SI-KPI), a supplier evaluation framework designed to strengthen human rights due diligence and improve outcomes for workers. The framework evaluates performance across three areas: due diligence, management systems, and beyond-compliance practices, including workplace safety, worker voice, gender equality, fair compensation, and worker empowerment. SI-KPI results help drive continuous improvement and strengthen accountability across our supply chain.  

Measuring Licensee Performance (Licensee Report Cards): adidas licensees are required to implement monitoring systems aligned with our Workplace Standards and use approved independent monitors. Performance is assessed annually through a report card that evaluates governance, supply chain management, and purchasing practices.