Publication Date:2022-09-02

Adidas committed to achieving climate neutrality across its own operations by 2025, reducing absolute greenhouse gas (GHG) emissions across its entire value chain by 30% by 2030, measured against a baseline of 2017, and in 2021 we also committed to and got approved our Science Based Targets  (‘SBT’). This paves the way for climate neutrality across its entire value chain by 2050. We also support global initiatives that aim to drive change for our industry, such as the Fashion Pact and the UN Fashion Industry Charter for Climate Action (‘UNFCCC’). To optimize environmental carbon footprint in our supply chain, our strategic Tier 1 and Tier 2 suppliers, around 400 facilities globally, are enrolled in our environmental program, which means we partner closely with them and provide suitable training, e.g., UNFCCC Climate Action Training by GIZ, to achieve our targets and progressively improve their footprint. We also drove various initiatives to help suppliers scale the use of renewable energy and increase their energy efficiency. 

Increasing adoption of renewable energy: 

We have seen progress following our 2025 target to keep emissions flat on 2017 levels through increased adoption of renewable energy. We encouraged suppliers in our environmental program to complete feasibility study and install rooftop solar panels. We successfully increased the rooftop solar power in our supply chain to 93 MWp in 2021 with strong commitment from our suppliers.  In China, one of our suppliers in Zhejiang, showed a clear commitment to switch their energy profile to cleanest energy by increasing the adoption of renewable energy/cleaner fuel sources. This facility has completed the installation of 100,000 m2 photovoltaics with total capacity 9,95 MWp in end of 2021, contributes to 12,047 ton CO2e reduction.

Besides the onsite RE generation, this supplier has worked in different dimensions to reduce their carbon footprint, including:

(i) Wind power project 

They partnered with local wind energy development company on wind energy project in 2020. This project has generated average annual energy output around 120 million units and contributes to 75,000 tons CO2e emission avoidance per year.  

(ii) Green electricity deals

Suppliers proactively joined the pilot of green electricity deals, which purchased  15million units of green electricity, resulting estimated 9,240 tons CO2e avoidance.

Continuing to increase energy efficiency: 

Further optimizing energy efficiency remains important going forward. We successfully achieved a 3% reduction, comparing to 2019 baseline. This achievement was contributed by our global supply chain. Our suppliers have implemented good management practice to regular review their significant energy use. For example, the supplier located in Zhejiang has continuous review their practice in energy saving practices in their production process. In 2021, they conducted several technology upgrade or enhancement as follows:

- Adopt high efficiency motor replacement which contributed 5~10% electricity saving,

- Utilize automatic switch drain valve to reduce 15% steam consumption, 

- Optimize production processing of post-dying process, which reduced 10% energy consumption.

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