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.