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Total Score

33.5 / 100

Emissions

25.5%

Adidas does report some data showing progress in supporting its suppliers to source renewable electricity in impactful ways, however the company lags behind its competitor PUMA by failing to report transparently on the overall energy sourcing in its supply chain.

Although it’s clear that Adidas is offering training and some resourcing to manufacturers, and it is encouraging that companies in its supply chain have set strong emissions reduction targets, the brand needs to extend that support to debt-free financing and provide evidence of equitable trading partnerships in order to rapidly advance a just energy transition. The company should also urgently address its coal phase out program to increase transparency, and prioritize solutions that will not replace one harmful fuel source with another.

Score Breakdown

Score 3.5/10
Target Brand Commitment Meets Benchmark
Stores and offices GHG Emission reduction target (Scope 1 & 2) 90% reduction from 2017 levels by 2030[1]
Stores and offices Renewable Electricity target (Scope 2) No – carbon neutral by 2025
Manufacturing emissions target (Scope 3) 30% reduction by 2030
Manufacturing Renewable Energy target (Scope 3) No
Public commitment to phase out thermal coal and transition to electrification/avoid harmful biomass Coal phase out by 2025[2]
Score 3/10

Adidas publishes a 3-year history and a base year of GHG emissions from Scopes 1, 2 and 3 including full scope 3 breakdown via its CDP disclosure.[3] Adidas publishes its supplier lists for Tier 1 and Tier 2.[4] However, unlike sportswear competitors Nike and PUMA, it does not disclose information on its supply chain electricity or thermal energy consumption or sourcing.

Score 13/40

Adidas’ manufacturing emissions fell more sharply than revenue in 2023. The company attributes this to “the work done with our suppliers, such as continuing with the phase-out of coal in our manufacturing facilities and the increased use of renewable energy … low-carbon manufacturing methods and materials, as well as decreased production volumes due to high inventory levels in the market”.[5] However, the company is not yet on track to meet the 2030 emissions reduction benchmark.

Although Adidas did not report its full supply chain renewable electricity ratio, it did provide some evidence of progress. The company reported that the total capacity of rooftop solar projects at key suppliers increased by 44% compared to the previous year to 267 MWp in 2023, and that 35 supplier factories used more than 50% renewable electricity.[6] Overall, Adidas suppliers sourced “more than 447,268 MWh from off-site renewable energy projects in 2023, reflecting an increase of 38% compared to the previous year.” [7]The company was awarded points for the relatively high level of high-impact procurement in its supply chain, but it should disclose the full extent of this sourcing as a priority.

To provide renewable electricity for its own operations, Adidas’ procurement has been 100% low-impact EAC and REC-based. However, in 2023 the company signed a 47MW VPPA.[8]

In advancing the coal phase out, Adidas disclosed that by the end of 2023, “more than 48 boilers have been modified or replaced (2022:18),”. [9] However, the company reports that these boilers were transitioned to “100% low-carbon fuel such as biomass or natural gas,” which still result in detrimental climate emissions and human health impacts. Adidas does not report what kind of biomass is being burned in its supply chain and was not scored for this transition.  

Score 14/40

Step 1: Adidas reports providing support to suppliers to reduce reliance on fossil fuels by energy efficiency measures. Examples of training, feasibility studies and non-financial resources include participation in GIZ Fabric Project training, UNFCCC climate training, its own engagement campaigns, Environmental Program and Supplier Self-Governance Model. [10][11]

Step 2: Adidas does provide some indication of financial support to improve energy efficiency and renewable energy uptake, including contractually securing additional renewable electricity capacity for suppliers, but further financial support for capital projects or transition expenses is not clear.

Step 3: The brand does have climate requirements, but these are not a condition of supplier contracts. Adidas reports incentivizing suppliers who are committed and has measures that reward ‘first mover advantage and sustainability leadership position’ [12]– amongst others.

Adidas was awarded some points for ​​its renewable energy advocacy work, although this was not as extensive as more active brands like Nike. Actions included engaging on the EU Strategy for Sustainable and Circular Textiles and communicating with policymakers in Vietnam and Indonesia in “advocating for and supporting local decarbonization plans”. [13]

Supply Chain Movement

It is encouraging that among the nine Adidas suppliers included in this supply chain map,  six have set strong emissions reduction targets, while three have set renewable electricity targets. The reported renewable electricity ratio among these companies remains low, at between 16% – 2% (when data is available), and suppliers reported a mix of REC, PPAs and on-site sources. Concerningly, two of the suppliers reported significant use of biomass burning for thermal energy. Adidas should aim to increase focus on renewable electricity with its key supply chain partners and work with them to enable high-impact renewable sourcing and improve transparency. 

Sources

[1] Sustainability – Climate Change and Decarbonisation.” Adidas, (2024). https://www.adidas-group.com/en/sustainability/environmental-impacts/climate-change-and-decarbonization/#/supply-chain/.

[2] Annual Report 2023 – Environmental Impacts.” Adidas, (2024). https://report.adidas-group.com/2023/en/group-management-report-our-company/sustainability/environmental-impacts.html.

[3] “Adidas Climate Change 2022.” CDP, (2023). https://www.cdp.net/en/responses/21380.

[4] “Sustainability – Supplier Lists.” Adidas, https://www.adidas-group.com/en/sustainability/transparency/supplier-lists/.

[5] “Annual Report 2023.” Adidas, (2024). https://report.adidas-group.com/2023/en/_assets/downloads/annual-report-adidas-ar23.pdf.p.84

[6] “Annual Report 2023 – Environmental Impacts.” Adidas, (2024). https://report.adidas-group.com/2023/en/group-management-report-our-company/sustainability/environmental-impacts.html.

[7]  “Annual Report 2023 – Environmental Impacts.” Adidas, (2024). https://report.adidas-group.com/2023/en/group-management-report-our-company/sustainability/environmental-impacts.html.

[8]  “A New Solar Plant to Power the European Operations of Adidas.” Enel, July 18, 2023. https://corporate.enelx.com/en/media/news/2023/07/enel-x-adidas-deal.

[9] “Annual Report 2023 – Environmental Impacts.” Adidas, (2024). https://report.adidas-group.com/2023/en/group-management-report-our-company/sustainability/environmental-impacts.html.

[10] “The Climate Action Training Is a Foundational Element for the Textile and Garment Industry to Upskill Itself.” Asia Garment Hub, March 2, 2021. https://asiagarmenthub.net/staging/agh-themes/climate-environment/articles/climate-action-training-interview-tracy-nilsson-adidas.

[11] “Adidas Climate Change 2022.” CDP, (2023). C.12. https://www.cdp.net/en/responses/21380.

[12] “Annual Report 2023 – Environmental Impacts.” Adidas, (2024). https://report.adidas-group.com/2023/en/group-management-report-our-company/sustainability/environmental-impacts.html.

[13] “Adidas Climate Change 2022.” CDP, (2023). C.12. https://www.cdp.net/en/responses/21380.