Annual Report 2024

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Metrics and Targets

E3-3 – Targets related to water and marine resources

Water intensity reduction target

We set a five-year water intensity reduction target for our global supply chain. Such a target has been established to consider water quantity and water quality from intensive water usage manufacturing processes, and it is not yet connected with a specific water risk level. Moreover, it is a voluntary target and not required by legislation. The target requires our suppliers to improve their water efficiency on a yearly basis, resulting in a reduction in the amount of water used – e.g., through increasing the recycling rate of water used in production and minimizing freshwater intake. The target contributes to the achievement of water consumption and withdrawal reduction, as stated in the adidas Environmental Guidelines.

By 2025, our target is to reduce the overall water intensity at adidas’ water-intensive Tier 2 production facilities by 40% (baseline: 2017; baseline value: approximately 0.0157 m3/US $ – m3/total product output value in US $). In this context, single facilities are expected to reduce their water intensity by at least 5% each year. These targets are based on the facilities’ water use in activities and processes; geographical locations of the facilities were not taken into account. In the future, we aim to align our targets with the requirements of the Science Based Targets Network (SBTN) for nature-related targets.

The target performance is tracked and verified on an annual basis, based on primary consumption data reported by each facility to the adidas system. In 2024, we achieved a 34.5% (2023: 32.9%) reduction in water intensity. This achievement is the result of the ongoing commitment and collaboration of our Tier 2 suppliers in improving sustainable water management practices in their production. We conduct an annual assessment process with suppliers and third-party auditors to gather improvement opportunities and continuously bring efficiency to the overall process.

For water quality targets, please see ESRS E2 POLLUTION. Targets to reduce plastic use (connected to water resources) are disclosed in ESRS E5 RESOURCE USE AND CIRCULAR ECONOMY.