Annual Report 2024

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ESRS E4

Biodiversity and ecosystems

Managing the impact of our business operations on biodiversity and ecosystems along the value chain is a key focus of our sustainability strategy. For this, we follow holistic frameworks such as SBTN’s science-based targets for nature and the Accountability Framework to guide our approach: Assess, Reduce, and Restore.

Impacts, risks and opportunities

Impacts

  • Our demand for natural and naturederived materials can lead to land-use change (i.e., deforestation, conversion and degradation of natural ecosystems)
  • Unfit agricultural practices can reduce biodiversity, and therefore negatively impact ecosystems and ecosystem services

Risks

  • Increased costs and/or unavailability of raw materials
  • Increased operational costs due to the need for an end-to-end traceability system
  • Reputational risks
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Targets

Our biodiversity strategy outlines our overall approach and aims to ensure our company’s readiness to achieve deforestation- and conversion-free (DCF) supply chains for high-risk commodities by 2030 or earlier. Our targets fully support our strategy implementation.

ONGOING 100% third-party certified cotton
(achieved in 2018) This target applies to all cotton sourced by adidas.
ONGOING 100% third-party certified wool
(achieved in 2024) This target applies to all sheep wool sourced by adidas.
Deforestation- and conversion-free (DCF) bovine leather supply chain by 2030 This target applies to all bovine leather sourced by adidas (excluding recycled leather and leather trims).
ONGOING 0 sourcing and processing of raw materials from endangered and/or threatened species This target applies to the entire volume of materials sourced by adidas.

Key metrics & actions

In 2024, we focused on enhancing transparency and traceability of materials by mapping upstream value chains of key natural materials. We also continued to focus on innovation and collaboration, to drive change in the industry.

Leather

  • Improved transparency into our supply chain (visibility upstream to the slaughterhouse and in some cases even to farm level)
  • Collaboration to drive the creation of industry standards and targeted joint action
  • Raising awareness among our suppliers

Cotton

  • Enhanced country of origin transparency based on supplier self-declaration
  • Steering our cotton portfolio towards a verified country of origin for all cotton sourced

Innovation and collaboration

  • Continuously scouting and piloting innovative material solutions that can reduce our impact
  • Collaboration with industry organizations such as Textile Exchange, Fashion for Good, Better Cotton, and Leather Working Group with the goal of creating industry standards that help reduce the impact of raw materials on biodiversity and enhance transparency and traceability in the upstream supply chain

Timber-derived materials

  • Initial supply chain mapping of man-made cellulosic fibers, in collaboration with Canopy Planet, to be refined in the next years
  • Optimization of packaging in our distribution centers to reduce packaging material consumption

Natural rubber

Initial supply chain mapping of natural rubber to be refined in the next years

Policies

We have adopted multiple policies, guidelines and standard operating procedures that anchor our approach to biodiversity and ecosystems in the management of our business. An overview of these policies can be found in the topical standard of E4.