Our Science-Based Targets

To ensure transparency and accountability, adidas has set ambitious climate targets validated by the Science-Based Targets initiative (SBTi) (last validation obtained in 2024). The SBTi supports companies in setting reduction targets that are scientifically grounded, helping businesses contribute effectively to global climate action.

Our near-term own operations SBTi-validated target: aim for a 70% reduction in Scope 1¹ and 2² absolute³ greenhouse gas (GHG) emissions⁴ by 2030, measured against a baseline of 2022

At adidas, we are aiming to reduce our GHG emissions across our own operations, including our administrative offices, distribution centers and retail stores. This tackles the areas that are in our direct control, tracked under Scope 1 and Scope 2 emissions. adidas does not consider the use of offsets⁵ to achieve this target. Reducing emissions from our own operations by 70% in 2030 equals a reduction of 2% of our total corporate emissions including supply chain, in the same timeframe.

¹ Scope 1 GHG emissions: Scope 1 GHG emissions are direct GHG emissions from operations owned or controlled by an organization (SBTi, 2025).

² Scope 2 GHG emissions: Scope 2 GHG emissions are indirect GHG emissions associated with the generation of purchased or acquired electricity, steam, heating or cooling consumed by an organization (SBTi, 2025).

³ Absolute emissions: Absolute emissions refer to the total amount of greenhouse gases (GHGs) released by an organization, measured in mass or tons of carbon dioxide equivalent (CO₂e)⁶ (aligned with SBTi, 2025).

⁴ Greenhouse gas (GHG) emissions: Greenhouse gas (GHG) emissions are gases that trap heat in the Earth's atmosphere, a process called the greenhouse effect. Human activities, such as burning fossil fuels, increase the release of these gases, contributing to global warming and climate change (IPCC, 2018).

⁵ Offset/Carbon offsetting: According to the Intergovernmental Panel on Climate Change (IPCC) a carbon offset is a reduction of GHG in order to balance out an emission made elsewhere. Essentially, offsetting refers to buying carbon credits which are tradable units of reduced GHG emissions from projects outside an organization‘s operations (IPCC). However, it’s important to note that buying these credits doesn't actually reduce the emissions created by the original activity—it's just compensating for them by funding projects that cut emissions elsewhere. In other words, carbon offsetting doesn’t directly lower the emissions from the activity you’re trying to offset.

⁶ Carbon dioxide equivalent (CO₂e): Carbon dioxide equivalent (CO₂e) is the universal unit to compare the impact of different greenhouse gases (GHGs) on global warming. It reflects how much each GHG contributes to atmospheric harm in relation to carbon dioxide. Converting emissions from gases other than CO₂ into CO₂e units allows for easier comparison of their effects as well as understand the overall effect of GHG emissions on the climate (aligned with IPCC, 2025).

As we are aiming for this target, we are focusing on the following key initiatives:

Powering up on Renewables: (67% reduction)

We are increasing our renewable electricity consumption through solar photovoltaic projects, power purchase agreements⁷, and virtual power purchase agreements (PPAs & VPPAs) across key locations, including Germany, China, Europe, and North America.

• On-Site Solar Projects: In 2024, we implemented additional on-site solar projects at the DC Manchester and at our factory outlet in Herzogenaurach.
• Power Purchase Agreements (PPAs): We continue to increase the renewable energy coverage by procuring renewable electricity through power purchase agreements (PPAs) and virtual power purchase agreements (VPPAs). After securing a VPPA contract for many European countries in 2023, we also signed a VPPA contract for the USA and Canada in 2024. The European project will become operational in 2025, the project for North America in 2026.

⁷ Power Purchase Agreements (PPAs) are long-term energy supply agreements concluded directly between a power consumer and a power producer, frequently renewable energy generators. By providing renewable electricity at mutually agreed rates, these contracts foster stability for both parties and promote the adoption of renewable energy sources. There are two main PPA variants:

• PPAs (Power Purchase Agreement): The electricity produced is delivered to the buyers physically.
• VPPAs (Virtual Power Purchase Agreement): An intermediary utility company handles the transfer of money and energy to and from the power producer on behalf of the buyer (RE100, 2022).

Improving Energy Efficiency: (3% reduction)

We are increasing energy efficiency through direct investments in building equipment, primarily at our corporate sites. This includes heating, ventilation, and air conditioning improvements, insulation, chiller replacements and LED retrofits in various locations.

In addition to these key initiatives, we are working on enhancing the quality of our energy data to make more informed strategic decisions. In 2024, we increased our primary data coverage for our own retail sites by 2% compared to the previous year, reaching 43% globally. Data coverage for administrative offices and distribution centers is at 100%, while data for showrooms and smaller offices was mostly estimated.

Our progress:

Scope 1 and 2 GHG emissions
2024 value: 135,814 tons CO₂e
2022 (baseline) value: 164,149 tons CO₂e⁸
Progress 2024 versus baseline: 17% reduction

⁸ Carbon dioxide equivalent (CO₂e): Carbon dioxide equivalent (CO₂e) is the universal unit to compare the impact of different greenhouse gases (GHGs) on global warming. It reflects how much each GHG contributes to atmospheric harm in relation to carbon dioxide. Converting emissions from gases other than CO₂ into CO₂e units allows for easier comparison of their effects as well as understand the overall effect of GHG emissions on the climate (aligned with IPCC, 2025).

Our near-term indirect emissions SBTi-validated target: aim for 42% reduction in Scope 3 absolute greenhouse gas (GHG) emissions by 2030, measured against a baseline of 2022

In addition to our direct operations, we are reducing greenhouse gas (GHG) emissions in our Scope 3 emissions⁹. Recognizing that a significant portion of these emissions is linked to our suppliers, we understand that meaningful change depends on strong partnerships and meaningful collaboration with them. Through our Supplier Environmental Program, we provide the resources and guidance they need to reduce their environmental impact, which also impacts adidas’ carbon footprint. adidas does not consider the use of offsets to achieve this target.

⁹ Scope 3 GHG emissions: Scope 3 emissions are indirect GHG emissions (other than those covered in Scope 2) that occur from activities not directly controlled by the organization. adidas includes emissions from the categories purchased goods and services, fuel- and energy-related activities, upstream and downstream transportation and distribution, business travel, end-of-life treatment of sold products and downstream leased assets in its 2030 ambition (SBTi, 2025).

As we are aiming for this target, we are focusing on the following key initiatives:

Renewable energy (RE) and energy efficiency (EE) (18% reduction):

We collaborate with our key suppliers to reduce energy consumption by driving energy efficiency and maximize generation and/or use of renewable energy. During 2024, suppliers participating in our Supplier Environmental Program sourced 24% of their electricity from renewable sources. This was achieved through on-site electricity generation, procurement via Power Purchase Agreements (PPAs), or high-quality Energy Attribute Certificates (EACs)¹⁰. In particular, EACs were purchased where sourcing or scaling up of electricity from rooftop solar and/or RE PPA-Agreements was not possible/limited.

¹⁰ Energy attribute certificates (EACs): Energy attribute certificates (EACs) are contractual instruments that certify the production of renewable and/or low carbon energy (aligned with EPA, 2025).

Material innovation (10% reduction):

We are scaling the use of lower-carbon materials, such as recycled, renewable, and organic options. As part of our material innovation efforts, we have successfully transitioned 99% of our polyester to recycled polyester.

Phasing Out Coal (6% reduction)

We provide guidance to assist our Tier 1 (assembly of products) and Tier 2 (material processes and manufacturing of product parts) suppliers in phasing out coal by 2025, transitioning to lower-carbon alternatives such as biomass and natural gas. By the end of 2024, more than half of the targeted suppliers in the Supplier Environmental Program have successfully upgraded their equipment and transitioned to lower-carbon alternatives.

Driving Process Improvement and Innovation (5% reduction):

We actively support the development and scaling of lower-carbon solutions in material processing, manufacturing, as well as product assembly that help us reduce GHG emissions. This includes innovations such as process electrification and lower-temperature assembly.

Other decarbonization levers (3% reduction) include, amongst others, increasing the use of lower-carbon fuels for transportation, packaging optimization, using recycled and certified packaging materials.

In 2024, 85% of our primary cardboard packaging was recycled, and 83% of our polybags were made of recycled plastic.

Setting Science-Based Targets

We encourage and support our suppliers in setting Science-Based Targets, offering training programs in local languages to facilitate their adoption.

Our progress:

Scope 3 GHG emissions
2024 value: 5,248,523 tons CO₂e
2022 (baseline) value: 6,578,270 tons CO₂e
Progress 2024 versus baseline: 20% reduction

Our Path to 2030

At adidas, we have set ambitious targets and developed a comprehensive roadmap to achieve a meaningful emission reduction. We also recognize the need to address potential additional emissions resulting from business- and production growth to stay on track with our goals.

The below chart illustrates our current 2030 emission reductions action roadmap across various areas of our entire business, in line with our science-based near-term targets and summarizes the above explained measures.

Our long-term emissions SBTi-validated target: aim for a 90% reduction in Scope 1, 2, and 3 absolute greenhouse gas (GHG) emissions by 2050, including reliance on yet-to-be developed technologies, measured against a baseline of 2022.

Our 2050 ambition relies on breakthrough innovations and technologies that are not yet fully developed or commercially available at scale. These are expected to account for around 45% of our total emission reduction needed by 2050. However, we cannot yet determine the exact innovations and technologies that will contribute to this 45% reduction or the extent of their impact.

We actively explore cutting-edge solutions with the potential to reduce our environmental impact, including, among others, renewable feedstocks like algae-derived materials, carbon capture and utilization,¹¹ lower carbon coloration technologies and alternative energy sources such as hydrogen. Additionally, we are monitoring advancements in textile-to-textile recycling, regenerative agriculture, and innovative business models such as repair services. Our approach involves assessing and investing in scalable innovations, collaborating with industry partners, and adapting to technological and regulatory developments. By balancing immediate actions with long-term innovation, we are aiming to drive meaningful change.

¹¹ Carbon capture and utilization (CCU): A process in which CO₂ is removed from the atmosphere and then used to produce a new material/product (aligned with SBTi, 2025).

As we are aiming for this target, we do not consider the use of offsets, instead we are focusing on the following key initiatives:

Scope 1 & 2 Initiatives (3% reduction)

• Powering up on Renewable (2,9% reduction)
• Improving Energy Efficiency: (0,1% reduction)

Scope 3 Initiatives (87% reduction)

• Renewable energy (RE) and energy efficiency (EE) (18% reduction)
• Material innovation (10% reduction).
• Phasing Out Coal (6% reduction).
• Driving Process Improvement and Innovation (5% reduction).
• Other decarbonization levers (3% reduction).
• Innovations and technologies not yet fully developed (45% reduction).

Our net-zero ambition

According to the IPCC (2018), net-zero emissions are achieved when human-caused GHG emissions are balanced by removing the same quantity of emissions from the atmosphere over a specified period of time. Put simply, net zero emissions mean that the amount of greenhouse gases we emit into the atmosphere is equal to the amount we remove.

Beyond our 90% target, we consider neutralizing the remaining (up to 10%) of our absolute emissions for which reduction actions aren’t viable. In line with SBTi, we will neutralize (offset) these remaining emissions through high-quality permanent carbon removal solutions. We will ensure that we invest only in certified high-quality projects that will ensure additionality, permanence, exclusivity and with environmental and social safeguards.

Our aim for 2050 requires collective action

Our climate action efforts extend beyond our direct business activities to include advocacy work and community engagement initiatives.

• Shaping the regulatory environment
  We will continue to actively engage with policymakers, industry associations and NGOs to support governments in shaping an effective regulatory framework for environmental sustainability. For example, our successful advocacy around a policy approach for Power Purchase Agreements in Vietnam will enable suppliers to gain easier access to renewable energy, supporting their decarbonization efforts.
• Collaborating at industry level
  We partner with industry leaders to drive systemic change and share best practices. As part of the UN Fashion Industry Charter for Climate Action steering committee, we help shape industry-wide climate action.
• Increasing Consumer Awareness
  Through Move for the Planet, we inspire consumers and educate sporting communities about the importance of environmental sustainability and climate change.

Our journey to net-zero (including up to 10% through offsetting) is an ambition for which we still don’t have all the answers.

We are dedicated to minimizing our emissions and continuously seeking innovative solutions, while remaining committed to transparency, collaboration and progress.

CDP Rating

Our efforts to implement our reduction measures and operate transparently have been recognized by CDP, awarding adidas an A Rating on their 2024 CDP Climate Rating List.

Forward-looking statements

Our website contains forward-looking statements that reflect Management’s current view with respect to the future development of our company. The outlook is based on estimates that we have made on the basis of all the information available to us at the time of completion of this text. In addition, such forward-looking statements are subject to uncertainties that are beyond the control of the company. In case the underlying assumptions turn out to be incorrect or described risks or opportunities materialize, actual results and developments may materially deviate (negatively or positively) from those expressed by such statements.

CLIMATE GLOSSARY:

The climate glossary offers definitions for key terms related to our Climate Action plan, drawing from widely recognized organizations and institutions, such as the Science Based Targets initiative (SBTi), which provides the framework for our science-based climate targets. While not exhaustive, the list aims to clarify the most important terms used in the context of our climate strategy.

Absolute emissions: Absolute emissions refer to the total amount of greenhouse gases (GHGs) released by an organization, measured in mass or tons of carbon dioxide equivalent (CO₂e) (aligned with SBTi, 2025).

Carbon capture and utilization (CCU): A process in which CO₂ is removed from the atmosphere and then used to produce a new material/product (aligned with SBTi, 2025).

Carbon dioxide equivalent (CO₂e): Carbon dioxide equivalent (CO₂e) is the universal unit to compare the impact of different greenhouse gases (GHGs) on global warming. It reflects how much each GHG contributes to atmospheric harm in relation to carbon dioxide. Converting emissions from gases other than CO₂ into CO₂e units allows for easier comparison of their effects as well as understand the overall effect of GHG emissions on the climate (aligned with IPCC, 2025).

CDP: CDP is a global non-profit organization providing an environmental disclosure system for companies, capital markets, cities, states, and regions. Investors and purchasers, along with policymakers around the globe, use this self-reported data and insights to make better-informed decisions (CDP, 2025).

Energy attribute certificates (EACs): Energy attribute certificates (EACs) are contractual instruments that certify the production of renewable and/or low carbon energy (aligned with EPA, 2025).

Entire business: For the scope of carbon accounting, we use the term 'entire business' in relation to all activities as defined under our Scope 1, 2 and 3. This covers all activities related to our own operations and our products.

Greenhouse gas (GHG) emissions: Greenhouse gas (GHG) emissions are gases that trap heat in the Earth's atmosphere, a process called the greenhouse effect. Human activities, such as burning fossil fuels, increase the release of these gases, contributing to global warming and climate change (IPCC, 2018).

Lower-carbon fibers/materials/processes: Fibers, materials or processes that generate lower levels of CO₂e when compared to the conventional method of production (aligned with Textile Exchange, 2023).

Net-zero: Net-zero emissions are achieved when the amount of greenhouse gases (GHGs) released into the atmosphere by human activities equals the amount of GHGs removed from the atmosphere over a specified period of time (aligned with IPCC, 2018).

Offset/Carbon offsetting: According to the Intergovernmental Panel on Climate Change (IPCC) a carbon offset is a reduction of GHG in order to balance out an emission made elsewhere. Essentially, offsetting refers to buying carbon credits which are tradable units of reduced GHG emissions from projects outside an organization‘s operations (IPCC). However, it’s important to note that buying these credits doesn't actually reduce the emissions created by the original activity—it's just compensating for them by funding projects that cut emissions elsewhere. In other words, carbon offsetting doesn’t directly lower the emissions from the activity you’re trying to offset.

Power Purchase Agreement (PPA): Power Purchase Agreements (PPAs) are long-term energy supply agreements concluded directly between a power consumer and a power producer, frequently renewable energy generators. By providing renewable electricity at mutually agreed rates, these contracts foster stability for both parties and promote the adoption of renewable energy sources. There are two main PPA variants:

• PPAs (Power Purchase Agreement): The electricity produced is delivered to the buyers physically.
• VPPAs (Virtual Power Purchase Agreement): An intermediary utility company handles the transfer of money and energy to and from the power producer on behalf of the buyer (RE100, 2022).

Recycled materials: Recycled materials are reprocessed from recovered materials using a manufacturing process. Recycled materials are incorporated into materials, components or products (aligned with ISO 5157).

Regenerative agriculture: Regenerative agriculture refers to holistic farming systems that, among other benefits, improve water and air quality, enhance ecosystem biodiversity, produce nutrient-dense food, and store carbon to help mitigate the effects of climate change (FAO, 2025).

Renewable energy: Renewable energy refers to energy from sources that replenish (or renew) themselves naturally (RE100, 2022). At adidas, the following sources are considered renewable energy sources: solar, wind, sustainably sourced biomass (incl. biogas), geothermal, sustainably generated hydropower.

Renewable materials: Renewable materials are composed of biomass and can naturally be replenished (Textile Exchange).

Science-based targets (SBTs): Corporate targets to reduce GHG emissions that are in line with what the latest climate science says is necessary to meet the goals of the Paris Agreement – to pursue efforts to limit warming to 1.5°C (SBTi, 2025).

Science Based Targets initiative (SBTi): The Science Based Targets initiative (SBTi) is a corporate climate action organization that enables companies and financial institutions worldwide to play their part in combating the climate crisis. It develops standards, tools, and guidance which allow companies to set greenhouse gas (GHG) emission reduction targets in line with what is needed to keep global heating below catastrophic levels and reach net-zero by 2050 at the latest (SBTi, 2025).

Scope 1 GHG emissions: Scope 1 GHG emissions are direct GHG emissions from operations owned or controlled by an organization (SBTi, 2025).

Scope 2 GHG emissions: Scope 2 GHG emissions are indirect GHG emissions associated with the generation of purchased or acquired electricity, steam, heating or cooling consumed by an organization (SBTi, 2025).

Scope 3 GHG emissions: Scope 3 emissions are indirect GHG emissions (other than those covered in Scope 2) that occur from activities not directly controlled by the organization. adidas includes emissions from the categories purchased goods and services, fuel- and energy-related activities, upstream and downstream transportation and distribution, business travel, end-of-life treatment of sold products and downstream leased assets in its 2030 ambition (SBTi, 2025).

Tier 1 suppliers: Tier 1 suppliers to adidas are suppliers responsible for the assembly of products, such as sewing t-shirts or assembling shoes.

Tier 2 suppliers: Tier 2 suppliers to adidas are suppliers processing materials and manufacturing product parts, such as molding shoe soles.