Annual Report 2024

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Metrics and Targets

E4-4 – Targets related to biodiversity and ecosystems

The targets described below support the implementation of our biodiversity strategy and reflect our company commitment to reduce the described negative impacts and risks that arise in our upstream value chain.

Deforestation- and conversion-free (DCF) bovine leather by 2030

We want to ensure that the materials used in adidas’ products are free from deforestation and conversion. This is a global goal that covers all bovine leather sourced by adidas, excluding recycled leather and leather trims. Our target is informed by the EU Deforestation Regulation (EUDR) and the EU biodiversity strategy for 2030, as well as research by the World Resource Institute (WRI) ‘Global Forest Review’ and World Wildlife Fund (WWF) ‘Deforestation Fronts.’ With the deforestation focus of the target, we support the Paris Agreement, and it is also indirectly aligned with the Kunming-Montreal Global Biodiversity Framework (GBF), aiming to protect species by preserving their habitats (forests and ecosystems). We monitor progress toward target achievement based on the materials’ sourcing volumes and overview of country of origin, while assessing suppliers from high-risk areas with additional due diligence matters. The target relates to material impacts on biodiversity and ecosystems from climate change, land-use change, extent and conditions of ecosystems, as well as dependencies of ecosystems (all upstream). Furthermore, it addresses risks from rising raw material costs, potential fines for non-compliance with EU regulations, as well as potentially increasing operational costs. While, in 2024, we prioritized leather in terms of DCF, respective roadmaps for natural rubber and timber-derived materials are currently under development.

100% third-party certified wool by 2024

This target is connected to the objective of supporting biodiversity through better land management in the upstream supply chain, which is secured by certification standards, and it is aligned with the Kunming-Montreal Global Biodiversity Framework (GBF). Through the target, we aim to mitigate negative impacts by land-use change as well as dependencies on ecosystem services and risks linked to availability and costs of raw materials. As a global target, it covers the entire volume of wool sourced by adidas, with the exception of recycled wool. Progress is measured annually, based on the total percentage of third-party certified wool (gathered through primary data), and no base year is applied. In 2024, we sourced 100% certified wool, fully meeting the target.

Zero sourcing and processing of raw materials from endangered and/or threatened species

Our goal is to support biodiversity by avoiding the use or processing of raw materials from threatened species (based on the IUCN Red List of Threatened Species) and to avoid impacting species in the upstream part of our value chain. The target is aligned with the GBF and addresses negative impacts, dependencies on ecosystem services and risks. It is a global target that covers the entire volume of materials sourced by adidas without exception. As an ongoing target, there is no set end date, and the result should be zero every year. In 2024, the target was met successfully.

100% third-party certified cotton

Since the end of 2018, 100% of the cotton we use has come from more sustainable sources, including organic, recycled, and other third-party certified cotton, e.g., BCI-cotton. The target covers the entire volume of cotton sourced globally and is tracked on a yearly basis. For 2024 performance data around this target, please refer to ESRS E5 Resource use and circular economy (resource inflows section).

For our current targets, no ecological thresholds and/or allocation of impacts were applied because this was not yet necessary. Furthermore, no offsets were taken into account. All four targets are global targets focusing on adidas’ upstream value chain and its most important nature-derived materials, as presented earlier. They are all allocated to the avoidance layer of the mitigation hierarchy.

Further targets that have a relation to biodiversity and ecosystems were developed as part of our climate strategy, our water management and our resource approaches. These additionally contribute to reducing negative impacts on biodiversity and ecosystems and are described in detail in ESRS E1 CLIMATE CHANGE, ESRS E3 WATER AND MARINE RESOURCES and ESRS E5 RESOURCE USE AND CIRCULAR ECONOMY, respectively.