Annual Report 2024

de

Topics Filter

Results

This is a photograph of two individuals. They both seem to be engaged in a conversation or observing something together that isn't visible in the photo. Both people are dressed in sport outfits and are standing near what looks like a fence of a stadium.

Basis for Preparation

BP-1 – General basis for preparation of the Sustainability Statement

This Sustainability Statement provides a comprehensive overview of the material sustainability matters of adidas in the 2024 financial year. It is part of our Annual Report, which is published as an online version and in .pdf format on our corporate website. The reporting period is the financial year from January 1 to December 31, 2024.

The Sustainability Statement has been audited with limited assurance by PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft (‘PwC’). It has been prepared for the adidas Group on a consolidated basis in accordance with the European Sustainability Reporting Standards (ESRS). It also fulfils the requirements for non-financial reporting obligations in accordance with §§ 289b ff. and 315b to 315c of the German Commercial Code (HGB) (combined non-financial statement).

The Sustainability Statement has been prepared on a consolidated basis and includes adidas AG and all its direct and indirect subsidiaries. An entity is considered a subsidiary if it is controlled by adidas AG. The scope of consolidation of the Sustainability Statement therefore follows the financial reporting scope. Further information on the scope of consolidation can be found in the Annual Report – Principles of consolidation in Note 2. SEE NOTE 2

The Sustainability Statement generally covers the value chain to the following extent: upstream, downstream, and our own operations. However, it does not cover all possible value chain activities or actors, it only does so where material information is present. We do not yet have full transparency, especially in our multi-tiered upstream supply chain, but also downstream. adidas has evaluated all ESRS standards and (sub-)sub-topics with a focus on its material impacts, risks and opportunities (IROs). The disclosures have been prepared in accordance with the guidance laid out in ESRS 1.

The safeguard clause does not apply; no information corresponding to intellectual property, know-how or the results of innovations has been omitted. The exemption from disclosure of impending developments or matters in the course of negotiations does not apply.

BP-2 – Disclosures in relation to specific circumstances

Time horizons

The general definition of the time horizons applied by adidas is in line with the ESRS definition in ESRS 1 section 6.4. The same time horizons are applied for the adidas risk management methodology:

  • Short-term: 1 year (equal to the reporting period of our financial statements)
  • Medium-term: 2 – 5 years
  • Long-term: ≥ 6 years

Measurement basis

The information on methodologies and, if applicable, calculation factors, estimations (including value chain estimations, sources, measurement and outcome uncertainties, planned actions to improve accuracy of metrics, approximations and judgements) and assumptions and limitations is listed in the topical standards with the relevant metrics along with references. Please note that the validation of the measurement of all disclosed metrics by an external body other than the assurance provider, if applicable, is outlined in the respective topical standards.

This Sustainability Statement contains forward-looking statements based on estimates that we have made using the information available to us at the time this Sustainability Statement was prepared. Such forward-looking statements are subject to uncertainties that are beyond the control of the company. In case the underlying assumptions turn out to be incorrect or the described risks or opportunities materialize, actual results and developments may deviate materially (negatively or positively) from those expressed in these statements.

In previous years, adidas reported the non-financial statement in alignment with the GRI standards. For the 2024 Sustainability Statement, we have changed the environmental, social, and governance (ESG) reporting framework to the European Sustainability Reporting Standards (ESRS). This has had a significant impact on the content and structure of the statement compared to previous years. Information and data previously reported have been re-sorted, expanded or replaced by newly required information. Cases lacking comparative figures for one or more previous periods are due to the fact that they are either not required by ESRS or due to impracticability.

Incorporation by reference

The following information is incorporated by reference into this Sustainability Statement.

ESRS 2 SBM-1 – Description of business model, strategy and value chain is incorporated by reference into the Sustainability Statement SEE OUR COMPANY

ESRS E1-6 – Gross Scope 1, 2, 3 and total GHG emissions: reference to Consolidated Income Statement for Net Sales. SEE INCOME STATEMENT

ESRS S1-6 – Characteristics of our employees: reference to Group Management Report – Financial Review SEE GROUP MANAGEMENT REPORT – FINANCIAL REVIEW

ESRS G1-4 – Incidents of corruption or bribery: reference to Risk and Opportunity Report SEE RISK AND OPPORTUNITY REPORT

Disclosure in relation to the German commercial code

This Sustainability Statement, which has been prepared in accordance with the ESRS also meets the requirements for the non-financial (group) statement prepared in accordance with §§ 289b ff. and 315b to 315c of the German Commercial Code (HGB) and thus represents the combined non-financial statement for the adidas Group and adidas AG.

In order to fulfil our reporting obligations under commercial law, we declare the following

The first-time and full application of the European Sustainability Reporting Standards (ESRS) as a framework in accordance with §§ 315c (3) in conjunction with 289d HGB is based on the importance of the ESRS as reporting standards for sustainability reporting adopted by the European Commission.

There are no significant risks arising from our own operations or from business relationships, products or services that are highly likely to have a serious negative impact on the non-financial aspects according to § 289c HGB.

Disclosures based on the EU taxonomy regulation

In addition, with this Sustainability Statement, the adidas Group is meeting the requirements of Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June on the establishment of a framework to facilitate sustainable investment and amending Regulation (EU) 2019/2088 (hereafter EU Taxonomy Regulation). SEE EU-TAXONOMY

Additional information on the non-financial statement of adidas AG in accordance with § 289b HGB

No recognized framework has been used for the non-financial statement of adidas AG because the ESRS Group Statement is of primary relevance to stakeholders.

adidas AG is the parent company of the adidas Group and is responsible for all corporate decisions. Therefore, with regard to the content of the non-financial statement for adidas AG in accordance with § 289b HGB, reference can be made to the statement concerning the Group.

There are no non-financial performance indicators that are reportable exclusively for adidas AG.