The climate crisis and global warming represents one of the biggest challenges the world faces. Adidas lay out a set of actions and targets we are taking to reduce greenhouse gas (GHG) emissions in our business and across our value chain, adidas has committed to:

─ Achieve net-zero GHG emissions (Scope 1, 2, and 3) for the entire value chain by 2050;

─ Reduce absolute GHG emissions across the supply chain (Scope 3)13 by 42% by 2030, measured against a baseline of 2022. 

─ Reduce absolute GHG emissions across our own operations (Scope 1 and 2) by 70% by 2030, measured against a baseline of 2022.

Based on our analysis, we found that the majority of adidas’ total GHG emissions originate from upstream activities such as raw material cultivation and extraction, processing and preparation, as well as product assembly, GHG emissions stemming from scope 3-upstrem account for around 93% of total GHG emissions. So we closely work with our suppliers to adopt many effective actions to reduce GHG emissions, these actions included but not limited to:

1. Renewable energy (RE) and energy efficiency (EE): 

Collaborate with our key suppliers to reduce energy consumption by driving EE and maximize generation and/or use of RE. 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.

2. Coal phase-out: 

Together with our direct Tier 1 and Tier 2 suppliers, we dedicated a program named “coal phase out” , aim to replace coal-fueled boilers wherever possible in their factories with lower-carbon fuel boilers, such as biomass and natural gas. 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

3. Process improvements and innovation: 

Develop and scale lower impact solutions in material processing, manufacturing, as well as product assembly that help us reduce GHG emissions (e.g. process electrification and low-temperature assembly).

4. Material innovation: 

Scale the use of low-carbon materials (e.g. recycled, biobased and organic). In 2024, with 99% of all polyester– our most widely used material –sourced from recycled polyester.

5. Other decarbonization levers include:

· Increasing the use of biofuels in inbound transportation. Our 98% (in 2024) transportation is by sea and truck, we encourage our logistics partners to increase their adoption of biofuels and alternative fuels to power vessels and trucks.

· Using less, recycled and/or sustainably sourced packaging materials. In 2024, 85% of our primary carboard packaging was recycled, while 83% of our polybags are made of recycled plastic.

· Reducing the share of air freight transportation

Throughout the above effort, the average Scope 1, 2, and 3 annual GHG emissions per product for 2024 decreased by 2.5% compared to the previous year.

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