ADIDAS: BENCHMARK FOR SUSTAINABILITY

 

Adidas AG is a German multinational corporation, founded and headquartered in Herzogenaurach, Germany, that designs and manufactures shoes, clothing and accessories. It is the largest sportswear manufacturer in Europe, and the second largest in the world, after Nike. It is the holding company for the Adidas Group, which consists of the Reebok sportswear company, 8.33% of the German football club Bayern München, and Runtastic, an Austrian fitness technology company. Adidas' revenue for 2018 was listed at €21.915 billion.

The company was started by Adolf Dassler in his mother's house; he was joined by his elder brother Rudolf in 1924 under the name Gebrüder Dassler Schuhfabrik ("Dassler Brothers Shoe Factory"). Dassler assisted in the development of spiked running shoes (spikes) for multiple athletic events. To enhance the quality of spiked athletic footwear, he transitioned from a previous model of heavy metal spikes to utilising canvas and rubber. Dassler persuaded U.S. sprinter Jesse Owens to use his handmade spikes at the 1936 Summer Olympics. In 1949, following a breakdown in the relationship between the brothers, Adolf created Adidas, and Rudolf established Puma, which became Adidas' business rival.

The three stripes are Adidas' identity mark, having being used on the company's clothing and shoe designs as a marketing aid. The branding, which Adidas bought in 1952 from Finnish sports company Karhu Sports for the equivalent of 1,600 euros and two bottles of whiskey, became so successful that Dassler described Adidas as "The three stripes company"

For over 20 years, adidas has been a change leader in sustainability. They were the first to bring eco-innovations to the mass market, they led the industry with the first sustainability report, and have been listed in the Dow Jones Sustainability Index (DJSI) every year since its creation in 1999. They are also a founding member of game-changing initiatives like Better Cotton, Leather Working Group, and Fair Labor Association.

In 1998, building on already existing initiatives, adidas developed its initial supplier code of conduct, now called Workplace Standards. The Standards were based on international human rights and labor rights conventions. They are contractual obligations under the manufacturing agreements adidas signs with all its suppliers. The 'Social & Environmental Affairs' team was established to ensure suppliers’ compliance with the company’s Workplace Standards. In 1998, they also adopted a comprehensive and detailed Restricted Substances Policy for product materials, prohibiting the use of chemicals considered as harmful or toxic. This was the first policy in the industry that clearly indicated test and pre-treatment methods for restricted substances. Some of the initiatives that were thus generated were the phase-out of PVC materials from the main product categories, again the first company in the textile industry to do so, as well as the introduction of new technologies to significantly reduce volatile organic compounds (VOCs) in footwear manufacturing by using innovative bonding technologies and water-based cement systems, both happening in 2000.

The factory in Scheinfeld, Germany, was the first in the industry to receive EMAS environmental management system certification. This was an important step in their efforts to reduce the environmental footprint of our facilities.

The year 1999 marked the beginning of the formal Stakeholder Engagement approach, as adidas joined the Fair Labor Association (FLA) as a founding member. Since its inception, the FLA has focused on creating long-lasting solutions for sustainable supply chains. Later, in 2005, the FLA accredited adidas’ monitoring program for the first time.

 

It was in a spirit of transparency and responsiveness towards its stakeholders that the company published its first Sustainability Report. Still today, adidas is the only company in the sporting goods industry which publishes a Sustainability update on an annual basis.

In the following year, adidas launched its Environmental, Health & Safety Guidelines, as well as the Guide to Best Environmental Practice. These are comprehensive and detailed standards for suppliers on handling, storage and disposal of chemicals, waste water treatment and effluents. As part of this, it was the first company in the industry to introduce a ban on six high-risk and hazardous chemicals used in our manufacturing facilities. The guidelines were published and several brands in the apparel and sportswear industry have asked for permission to use our guidelines when dealing with their own suppliers. That year marks the birth of the Better Cotton Initiative (BCI), of which adidas was the founding member. The BCI addresses the negative social and environmental impacts of mainstream cotton farming, such as excessive pesticide and water use. Better Cotton is grown in a way that reduces the amount of chemicals used.

Virtualisation became a strategic initiative for adidas. It allowed a reduction of the quantity of physical samples required to design and sell new products. With virtualisation, resources and money are saved by reducing material waste, transportation and distribution costs. And with fewer samples being flown around the globe, carbon emissions are also reduced! In that same year, adidas also spearheaded the introduction of Human Resources Management Systems in major footwear factories, a key step towards improved supply chain management. Adidas became a member of the Fair Factories Clearinghouse, an industry-leading compliance data-sharing platform, which Reebok had co-founded, as well as the Leather Working Group, key to the establishment of an audit protocol for all of their leather suppliers

In 2010 adidas voluntarily disclosed its global supplier factory list. While adidas was not the first in the industry to do so, but they raised the bar for the whole industry a few years later when, in 2010, as the Official Sponsor, Licensee and Outfitter of the 2010 FIFA World Cup South Africa™, adidas disclosed the list of factories involved with the production of World Cup products. They were the first and only FIFA sponsor to do so. Since then, they have disclosed the list of factories manufacturing 2014 FIFA World Cup Brazil™ products, as well as the list for the London 2012 Olympic Games. Here as well, they were the first Olympic partner to disclose its supply chain for the Olympic Games.

2007 was also a cornerstone moment for the adidas brand, with the set-up of its product sustainability program, aimed at increasing the sustainability attributes of the brand’s global product offering. One of the earliest outputs of this new program was the adidas Grün collection, one of the very first adidas sustainable product ranges. The auditing program expanded its scope, as they started dedicating environmental audits at our supplier sites – based on a rigorous environmental audit protocol that includes chemicals management (risk management, handling, use and storage of chemicals). As of 2010, mills and dyehouses were included into the audit scope as well.

Adidas has been looking at the issue of fair wages since 2002 and continues to explore possible solutions that the whole industry might adopt. In 2011, 25 adidas suppliers in eight countries – Philippines, Indonesia, Mexico, Brazil, Vietnam, China, El Salvador and Thailand – participated in a Fair Wage self-assessment questionnaire. The assessments have helped to improve the way to monitor compensation and pay issues at supplier factories and have integrated the Fair Wage idea into the supplier training on Human Resources Management Systems.

Also, adidas was one of the founding members of the Zero Discharge of Hazardous Chemicals (ZDHC) Initiative, launched to drive change in industry practices when it comes to responsible chemical management. In this framework they have committed to the phase-out of long-chain PFCs by no later than January 1, 2015.

The collection for the London 2012 Olympic Games was the most sustainable adidas collection ever produced. At the same time, adidas DryDye was launched: a new technology which eliminates the need for water in the dyeing process, therefore also reducing the use of chemicals. Within a year, we were able to achieve 1 million yards of DryDye fabric produced! Then adizero Primeknit hit the market, introducing a new way of making products with no textile waste.

In the supply chain, adidas introduced an SMS for workers project at one of the company’s main footwear suppliers in Indonesia to improve the communication between factory workers and management.

After the successful launch of the Element Soul shoe in fall/winter 2012, the Element Voyager shoe was brought to market in the summer season 2013. With 95% pattern efficiency, the Element Voyager is down to 5% waste. The complete Element Voyager shoe is made with environmentally preferred materials. In apparel, adidas produced a full activewear line featuring t-shirts, tanks, tights, skirts and shorts with 95% pattern efficiency (only 5% waste). Low Waste is an innovative way to create the products in a more intelligent way.

On top of that, all adidas Sport Performance footwear newly created for 2013 use sustainable components such as environmentally preferable materials In spring, adidas presents its '4 P' sustainability framework. The strategy is rooted in the company’s values and built on the achievements and learnings from previous years, while taking into account the societal landscape and future global trends.

Taking chemical innovation to the next level: in June, adidas announces a strategic partnership with bluesign technologies to further drive sustainable solutions in the company’s global supply chain. Furthermore, adidas commits to being 99% PFC free by no later than December 31, 2017.

In November, adidas celebrated more than 25 years of manufacturing in Indonesia, one of the key sourcing locations. This long history of manufacturing in the country is testament to the adidas sourcing strategy, which focuses on key strategic partnerships with its supplier base.

Saving ever more water thanks to DryDye: by the end of 2014 the company has produced 4 million yards of DryDye fabric, saving 100 million liters of water. In April, adidas announces a partnership with Parley for the Oceans, an environmental organization and collaboration network that raises awareness for the beauty and fragility of the oceans and implements comprehensive strategies to end their destruction. In June, in the surroundings of the United Nations Headquarters adidas showcases an innovative footwear concept born from this collaboration, the first footwear made with Ocean Plastic.

In September, the adidas joins the UN Climate Neutral Now initiative to promote a wider understanding of the need and the opportunities for society to become climate neutral.

adidas presents ‘Sport Infinity’, a research project led by adidas and funded by the European Commission, bringing together a variety of industry and academic experts. The aim of the project is to develop a material that can be endlessly recycled using a waste-free, adhesive-free process.

In December, on the occasion of COP21, adidas and Parley for the Oceans showcase strategic sustainability for the industry presenting an innovative footwear concept, the 3D-printed Ocean Plastic shoe midsole. Click here to watch a recap video from the event.

n April, adidas launches its Sustainability Strategy for 2020. Deeply rooted in the company’s core belief that through sport we have the power to change lives, the strategy translates the company’s sustainable efforts into tangible goals and measurable objectives until 2020.

adidas goes plastic-bag free in its stores: As of April, plastic shopping bags are removed from the company’s own retail stores globally.

In 2016, adidas ranks second in the Apparel sector, and fifth in the overall ranking out of 98 corporations in the newly launched Corporate Human Rights Benchmark (CHRB). Also, adidas ranks first in the KnowTheChain evaluation of forced labor in the global Apparel and Footwear sector.

adidas is awarded an unprecedented third re-accreditation of its social supply chain program by the Fair Labor Association, and is the overall winner, heralded as “‘Outstanding Achiever’ at Thomson Reuters Foundation’s Stop Slavery Awards.

adidas produces more than 1 million pairs of shoes made with Parley Ocean Plastic and calls on its global community to sign up for the adidas x Parley Run for the Oceans, a global movement that takes place for the first time on World Oceans Day 2017 to raise awareness for the state of the oceans.

adidas successfully delivers against its commitment to be 99% free of poly- and perfluorinated substances (PFCs) by no later than the end of 2017.

adidas commits to go plastic-free at adidas offices worldwide.

adidas launched its product take-back program in fall 2017. The program piloted in selected adidas stores in four key cities (New York, Los Angeles, London and Paris).

Run for the Oceans returns: In June, adidas and Parley for the Oceans are calling on their global communities to unite for the second consecutive year in one movement against marine plastic pollution and host over 12 major running events across six key cities including weekly running activities with 50 adidas Runners communities worldwide. The money raised has helped directly educate and empower 100,000 youth and their families who are living in coastal areas affected by plastic pollution to take action as part of the Parley Ocean School Program.

adidas creates more than 5 million pairs of shoes containing Parley Ocean Plastic.

100% of the cotton we sourced globally was 'sustainable cotton', that means cotton sourced according to the standards of the Better Cotton Initiative or oganic cotton.

adidas strengthens its commitment to tackling plastic waste with the reveal of Futurecraft.Loop - the first fully recyclable running shoe. It has been in the test phase since 2019. The market launch is planned for 2021.

adidas produces more than 11 million pairs of shoes using recycled plastic waste from beaches and coastal regions. compared to five million in 2018 and one million in 2017.

adidas and Stella McCartney presented the jointly developed prototype of a tennis dress made of bio-fabricated materials based on cellulose and protein prior to last year’s Wimbledon tournament.