Climate and Net Zero Targets

Scope 1 and 2: Reduce absolute Scope 1 and 2 GHG emissions by 70% by 2030 from a baseline of 2022. Updated target as of 2024.

Scope 3: Commitment to reduce absolute GHG emissions across the supply chain (Scope 3) by 42% by 2030, measured against a baseline of 2022. Updated target as of 2024.

Mid-term (2035/2040) milestones: None

Net Zero Roadmap: Company has a 2050 Net Zero target, full transition plan expected in 2025.

Renewable Energy Targets

Own operations RE target: Yes – through UNFCCC Fashion Charter. In 2023, signed an agreement to supply adidas with renewable energy produced by a new solar project currently under construction in the province of Seville, Spain. As of 2024, has also committed to increase the renewable energy coverage by procuring renewable electricity through power purchase agreements (PPAs) and virtual power purchase agreements (VPPAs) and 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.

Supply chain RE target: Partial. Decarbonisation manifesto for Tier 1 and Tier 2 strategic suppliers includes adoption of renewable energy by 2025, does not include EAC purchases, but Adidas has not published a specific target.

Thermal Coal Phase Out

2030 Coal Phase-out Target: Yes to coal phase out, has a replacement policy that prioritizes biomass and gas

Thermal energy transition/ electrification: Yes 100% coal phase out by 2030. Progress: By the end of 2023, more than 48 boilers have been modified or replaced (2022:18) to use 100% low-carbon fuel such as biomass or natural gas. 6 Adidas suppliers have now completely phased out the use of coal in their production.

By the end of 2024, more than half of the targeted suppliers in the program have upgraded their equipment and transitioned to lower-carbon fuels.

Transparency

Emissions data: Emissions disclosed with category breakdown, no tier or country breakdown

Supply chain energy data: Adidas provides some anecdotal data about supply chain renewables, but does not report full supply chain data. In 2024; suppliers participating in Environmental Program sourced 24% of their electricity from renewable sources through on-site electricity generation and/or procurement via PPAs, as well as high-quality Energy Attribute Certificates (EACs) where sourcing or scaling up of electricity from rooftop solar and/or RE PPA-Agreements was not possible/limited. 7% of the electricity used by key suppliers is sourced from rooftop solar PV systems. In 2023, it reported, 35 supplier factories are now using more than 50% of their electricity from RE. Overall, suppliers sourced more than 447,268 MWh from off-site renewable energy projects in 2023. On thermal, reported that more than 48 boilers have been modified or replaced (2022:18) to use 100% low-carbon fuel such as biomass or natural gas as of 2023.

Supplier lists published: Published to Tier 2.

Supplier list link

https://www.adidas-group.com/en/sustainability/social-impacts/supply-chain”

Training, feasibility studies, and non-financial support for climate action

Provides training in compliance with Adidas standards and processes, some environmental information included. Limited evidence of content or engagement with outside providers. Reference to RE training: We provided supplier training workshops in multiple countries to upskill suppliers on how to source off-site RE and to communicate our expectations on scaling up RE. In 2022, our suppliers in China secured a total of 25,000 MWh of renewable energy through recently launched green power contracts.

Additional, targeted support for transition planning: No strong evidence. Company now acknowledges ‘just transition’ in 2024 reporting. Saying that it will ensure it contributes to a net-zero future, creating pathways that are inclusive, equitable, and just. This means empowering communities, protecting workers’ rights, and fostering sustainable opportunities (‘just transition’).

Financial Support for Decarbonization

Loans and financing: No evidence

Collective financing initiatives: No evidence

Direct/debt-free financing: No evidence

Responsible/equitable buying to enable climate action

Purchasing decisions incentivize climate action: Somewhat. Responsible sourcing and purchasing policy says: A commitment to long term partnerships with suppliers, which recognise those suppliers delivering sustainable compliance, in accordance with the Workplace Standards, a track record in reducing environmental impacts and maintaining and achieving product safety standards. Communicates; suppliers are incentivized to achieve and maintain a high level of performance against these criteria through the awarding of higher orders.

Equitable/long-term sourcing to enable climate action: Not linked to decarbonization but communicates that it values long-term relationships: 65% of our independent manufacturing partners have worked with us for at least ten years and 35% have a tenure of more than 20 years. The length of our supplier relationship is determined by specific performance criteria which is regularly measured and reviewed.

Prices enable climate action: No evidence.

Climate Adaptation

Adaptation/worker just transition training funded or provided: No evidence

Emergency support developed with local groups: No evidence

Decarbonization Progress

Reducing manufacturing emissions: Overall shows a significant reduction (-22%) compared to its baseline, although the company recently set a new baseline of 2022 and reported a 5% increase year on year to 2024.

Increasing supply chain renewable electricity: Partial. Reports that During 2024, suppliers participating in our Environmental Program sourced 24% of their electricity from renewable sources through on-site electricity generation and/or procurement via PPAs, as well as high-quality Energy Attribute Certificates (EACs) where sourcing or scaling up of electricity from rooftop solar and/or RE PPA-Agreements was not possible/limited. 7% of the electricity used by our key suppliers is sourced from rooftop solar PV systems,

Coal phase out transition progress: No. Did report progress transitioning suppliers to biomass and gas boilers.

Commitment to phase out fossil fuel-derived fibers

No

Deforestation-free materials

Leather: Yes. Has strengthened this in 2024 with strong biodiversity policy. Deforestation- and conversion-free (DCF) bovine leather by 2030 also influenced by EUDR. In 2023, reported more than 99% of our leather volume is audited in accordance with the LWG protocol, with most of our hides being sourced from tanneries with the highest possible rating (‘Gold’). LWG is currently working on enhancing this audit protocol to create an industry-first traceability standard for leather. In 2023, adidas committed to a deforestation and conversion-free (‘DCF’) leather supply chain latest by 2030. However, Adidas has previously been under investigation for the provenance of it’s leather for shoes.

Man-made Cellulosic Fibers: Yes – partnered with Canopy in 2024

Low-carbon materials

Significant investment and projects to develop and enhance recycled/ next gen materials, including increasing circularity of cotton and supporting closed loop textile recycling services in the EU.

Increasing Circularity

Adidas does not have a specific target to increase the use of post-consumer recycled cotton. The brand has a commitment that by 2025 9 out of 10 articles will be sustainable, meaning that they are “to a significant degree” made with environmentally preferred materials, primarily recycled or “more sustainable cotton”, which includes Better Cotton. Currently recycled cotton only makes 0.1% of total cotton, while 97% is BCI. Adidas does not report significant engagement to support regenerative cotton. The company does not currently offer repairs or resale at scale.

Target & increase recycled cotton

Not specifically targeting recycled cotton. By 2025 9 out of 10 articles will be sustainable, meaning that they are – to a significant degree – made with environmentally preferred materials, primarily recycled or “more sustainable cotton” (includes Better Cotton). Recycled cotton only 0.1% of total cotton.

100% recycled/organic/regen cotton + wool, report on progress
Not specifically. Since the end of 2018, 100% of the cotton we use has come from more sustainable sources, including organic, recycled, and other third-party certified cotton. Organic cotton only 2.7%, third party BCI is 97% and recycled 0.1%. Company also had a policy for 100% 3rd party certified wool by 2024

Support farmers, transition to regen/organic farming

Some. During the 2022/23 cotton season, adidas participated in the ‘Organic Cotton Accelerator’s Farm Program’ and sourced organic cotton from smallholder farmers in India.

Resale/repair – % total sales/disclosure on #

Has conducted a number of pilot initiatives, nothing at a global scale.

Direct link resale/repair to reduce production

No

Materials transparency

Shares material mix: As of 2024 report, improved disclosure. Now shares total material weight by tonnes used for products.

Shares total recycled materials by weight and total biological materials (defined as natural fibers, natural polymers and biobased materials). Has improved from 2023 where it only shared % for top products

Provides data on units sold: No

Adidas shared limited detail about its commitments and actions to reduce upstream shipping emissions. Adidas does include shipping emissions in its Scope 3 climate target, which is positive. The company reported a sharp emissions increase of 28% since 2023, although it was still lower than its 2022 baseline, showing that transportation emissions need to be in greater focus.

Adidas does deserve credit for maintaining a very low rate of goods transported by high-emitting aviation, at just 2% of goods, lower than key sportswear competitors, although the company has not set a specific public target or goal around this.

Action to reduce the impact of marine shipping: No evidence

No commitments or actions to support a transition to Zero Emission marine shipping by 2030.

No strong direct examples beyond membership of the Fashion Pact and UNFCCC Fashion Industry Charter for Climate Action.