Annual Report 2024

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ESRS E1

Climate Change

The climate crisis and global warming represent some of the biggest challenges the world faces. With the adidas climate strategy we 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, aiming to reach net-zero1 by 2050.

Impacts, risks and opportunities

Impacts

  • Energy-intensive supply chain
  • 87 % of adidas total GHG emissions from upstream activities

Physical risks

  • Reduced material availability due to changing weather patterns, leading to higher material costs
  • Extreme weather events and shifting weather patterns causing physical damage to properties and inventories

Transition risks

  • Exposure to GHG emissions pricing mechanisms and/or related regulation and litigation
  • Increased stakeholder scrutiny resulting in reputational risks
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Our climate strategy levers & actions 2030

Our climate strategy is based on well defined decarbonization levers and actions to reduce GHG emissions across our entire value chain with a particular focus on Scope 3 GHG emissions in our upstream supply chain.

Climate strategy levers

Scope 3SBTi approved target reduction Scope 1 & 2SBTi approved target reduction Scope 3 GHG emissions Scope 1 & 2 GHG emissions ~18% ~10% ~6% ~5% ~3% ~2% 3.9 1 6.7 1 ~42% ~70% 2022 Business growth Coal phase-out Other levers Target 2030
1 CO2e in million tons read more

Scope 1 & 2 GHG emissions (own operations)

  • Drive energy efficiency at our sites
  • Increase on-site renewable energy generation and procurement
  • Fleet electrification
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Scope 3 GHG emissions

  • Maximize usage of renewable electricity (RE) and drive energy efficiency (EE) in our supply chain
  • Replace use of coal in the boilers at our Tier 1 and Tier 2 suppliers’ facilities
  • Develop and scale lower-impact solutions in material processing, manufacturing, and product assembly
  • Drive low-impact materials innovation
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Targets

Our climate strategy targets are approved by the SBTi and in line with a 1.5°C pathway – the most ambitious goal established by the Paris Agreement.

Climate strategy targets

SBTi APPROVED Achieve net-zero GHG emissions for Scope 1, 2 and 3 by 2050
SBTi APPROVED Reduce Scope 3 GHG emissions: –42% by 2030 (baseline 2022)
SBTi APPROVED Reduce Scope 1 & 2 GHG emissions: –70% by 2030 (baseline 2022)
Achieve a 9% reduction in carbon intensity per product by 2025 (baseline 2022)

Carbon intensity per product

Current status 2024 –5%
Target 2025 –9%
Baseline 2022

Scope 3 GHG emissions

Current status 2024 –20%
Target 2030 –42%
Baseline 2022

Policies

We have adopted multiple policies, guidelines and standard operating procedures that anchor our approach to climate change in the management of our business. An overview of these policies can be found in the topical standard of E1.

1 Net-zero: As per SBTi, net-zero GHG emissions are achieved when human-caused GHG emissions are balanced by removing the same quantity of emissions from the atmosphere over a specified period (“net-zero” future). This is necessary at the global level to stabilize temperature increase at 1.5°C. In line with the SBTi criteria, we aim to achieve net-zero by cutting all our possible GHG emissions (by more than 90%) through direct GHG emission reduction actions and neutralizing the residual GHG emissions through permanent carbon removal and storage.