How Adidas is Advancing Supply Chain Sustainability
Adidas has reported strong financial performance in 2024, with an increase in operating profit of more than €1bn ($1.08bn), reaching €1.337bn ($1.45bn).
Bjørn Gulden, CEO at Adidas, highlights the company’s strategic direction, stating: “I am confident we have the product pipeline and marketing plans to continue to drive brand heat globally.
“Of course there is a lot of macroeconomic uncertainty right now, but with products that we think are on trend and the attitude of being agile and more local, I cannot see why we should not be successful."
Alongside financial success, Adidas continues to enhance its sustainability efforts, particularly in supply chain and logistics.
The sportswear giant voluntarily aligns its sustainability reporting with the Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS).
Reducing emissions across the supply chain
Adidas maintains its commitment to sustainability by targeting net-zero emissions by 2050, aligning with the Science Based Targets initiative (SBTi) for a 1.5°C pathway.
The company’s sustainability targets focus on reducing emissions across all areas of its supply chain.
By 2025, it aims to lower carbon intensity by 9%. Longer-term goals include a 70% reduction in Scope 1 and Scope 2 emissions and a 43% reduction in Scope 3 emissions by 2030.
In 2024, Adidas achieved reductions of:
- 17% in Scope 1 and Scope 2 emissions
- 20% in Scope 3 emissions
- 5.3% in carbon intensity
- 20% across all three scopes combined
These reductions demonstrate Adidas' progress in making its logistics and manufacturing operations more sustainable. The company continues to refine its processes to ensure emissions reductions across its global supply chain.
Circular materials and responsible sourcing
Sustainable materials remain a key focus for Adidas.
In its 2024 annual report, the company states: “In 2024, climate change, pollution, water, biodiversity and ecosystems and resource use and circular economy were confirmed as material environmental impact areas for us to continue to focus on in the future.”
As part of its approach, Adidas works to eliminate deforestation from its leather supply chain by 2030.
It is also expanding circularity initiatives, investing in projects such as T-REX (Textile Recycling Excellence) and Sorting for Circularity.
T-REX focuses on recycling polyester, polyamide 6 and cellulosic materials from textile waste into new garments. The project, involving 13 partners, including Adidas, Veolia and Fashion for Good, aims to scale up textile recycling and reduce reliance on virgin materials.
Adidas further supports circularity by increasing the use of recycled materials.
The company reports a 99% recycled polyester usage rate wherever possible, significantly cutting its dependence on virgin polyester. This shift contributes to more sustainable product development and waste reduction.
Responsible business practices and innovation
Adidas recognises the importance of maintaining ethical and sustainable practices across its supply chain.
The company conducts due diligence to identify and mitigate potential human rights and environmental risks. This includes evaluating suppliers and ensuring compliance with labour and safety standards.
Adidas actively works to improve the environmental and social performance of its supply chain partners.
The company also continues to invest in innovation to enhance sustainability, exploring bio-based alternatives to synthetic materials and developing new manufacturing techniques that minimise waste and energy consumption.
Additionally, it optimises logistics and transportation operations to reduce its carbon footprint.
Beyond its direct operations, Adidas supports environmental conservation and biodiversity initiatives. By integrating sustainability into its supply chain, the company aims to set industry benchmarks for responsible business practices while maintaining financial growth.
With a clear focus on supply chain sustainability, Adidas balances profitability with long-term environmental goals.
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