Metrics and Targets

E5-3 – Targets related to resource use and circular economy

To address the multifaceted challenges of circular economy, resource use, and waste management, and to effectively steer our various efforts across these interconnected topics, we have defined specific targets related to these issues. For all target setting, we rely on scientific evidence and recognized frameworks where they exist. Targets are benchmarked against industry practice and validated in informal interactions with stakeholders.

• 90% of our articles to be sustainable by 2025: This target is specific to the increase of circular material use, the minimization of virgin materials and sustainable sourcing of renewable resources. We define articles as sustainable when they show environmental benefits versus conventional articles due to the materials used, meaning that they are – to a significant degree – made with environmentally preferred materials. Our definition of sustainable materials references the framework of Textile Exchange’s Preferred Fiber and Materials Matrix and is documented in the Sustainable Ingredient and Concept Standard SOP, see section E5-1. The majority of the environmentally preferred materials currently used are recycled materials or more sustainable cotton. To qualify as a sustainable article, environmentally preferred materials have to exceed a certain predefined percentage of the article weight. The applied criteria for environmentally preferred materials and the percentage of the article weight are defined based on standards reflecting the latest industry developments, competitor benchmarks, and expert opinions: for apparel, the environmentally preferred material content is required to be at least 70% of the article weight, for accessories and gear,at least 50%; and for footwear, at least 20%¹. There is no baseline value or base year associated with the target. In 2023, almost eight out of ten of our articles were sustainable according to our definition. However, over the course of 2024, we decided that the maturity of the foundational capabilities we built over the last few years – to create more transparency and higher accuracy for material and product data – has reached a level that allows us to now operationalize the capability without specifically incentivizing it in the future. As a result, we will not apply this target for 2024 and 2025, but keep monitoring the sustainable article share of business units against the 2023 achievement level.
• Use 100% recycled polyester wherever technically possible by the end of 2024: This target is specific to the increase of circular material use and the minimization of virgin raw materials. It applies to all polyester used in our products. In 2017, adidas made a commitment to replace all virgin polyester with recycled polyester by the end of 2024, where technically possible. In 2024 we achieved 99%, which puts us very close to our target. We focus on the use of recycled polyester because it reduces resource use and has a significantly lower environmental impact compared to virgin polyester (based on Life Cycle Analysis). As polyester is the material most used in our products, this is also a significant lever for our decarbonization roadmap. With our roadmap and target achievement, we are significantly exceeding the level of recycled polyester adoption within the global apparel industry since 2018. The integrity of the recycled materials used is certified by recognized third-party certifications such as the Global Recycled Standard (GRS) and the Recycled Claim Standard (RCS). These certifications guarantee a robust chain of custody and minimize the risks of unauthorized mixing or swapping of materials.

Recycled polyester share of total polyester use¹

• 10% of polyester to come from recycled textile waste by 2030: This target is specific to the increase of circular material use and the minimization of virgin raw materials. It applies to all polyester used in our products. To raise our ambition, we have set a new target in our recycled polyester roadmap. Moving from plastic bottles to textile waste as a feedstock for recycled polyester is aligned with Ellen MacArthur Foundation’s framework of circular fashion², and is the start of scaling circularity with the material most used in our products. This goal also prepares us for anticipated regulatory changes that will most likely require companies to responsibly manage the end-of-life of their products. The first products with textile-to-textile recycled polyester are planned for 2026.
• 100% third party certified cotton: This target is specific to the sustainable sourcing and use of renewable resources. 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. Textile Exchange’s Preferred Fiber and Materials Matrix serves us as a framework to define sustainable types of cotton based on scientific criteria. The target covers the total volume of cotton sourced globally and is tracked on a yearly basis. In 2024, we again met this target. For detailed data on the 2024 performance, please refer to the resource Inflows section below.
• Deforestation and conversion free (DCF) bovine leather supply chain by 2030: This target is specific to sustainable sourcing and use of renewable resources. SEE TARGETS SECTION OF ESRS E4 BIODIVERSITY AND ECOSYSTEMS.
• 98% of waste is diverted from landfills at Tier 1 and Tier 2 suppliers by 2025: This target is specific to waste management. It was set in 2021 based on industry benchmarks and is aligned with our waste management guidelines and waste diversion program to assist our suppliers in enhancing waste segregation during manufacturing, reuse of non-hazardous waste, and focusing on recycling or waste-to-energy. There is no baseline value and base year for the target. Expanding this program globally has led to a collective landfill diversion rate of 96.2% among our enrolled suppliers in 2024. This target refers to the recycling and waste-to-energy layers of the waste hierarchy.

As explained under E5-2 Actions – Circular Economy, the circular ecosystem in the apparel and footwear industry is in early stages of development. Industry average durability and recyclability metrics and standards are still under development. Product design guidelines for these important areas can only be provided once such standards are in place, which is currently under discussion in different research and policy forums related to EU Product Environmental Footprint Category Rules (PEFCR) and Ecodesign for Sustainable Product Regulation (ESPR).

All of the above targets are voluntary and not mandated by law.

E5-4 – Resource inflows

Materials used in products: adidas’ product portfolio includes apparel, footwear as well as accessories and gear. We outsource almost 100% of our production to independent manufacturing partners and do not purchase any significant amounts of materials or components directly. While we do not track the individual weight of products (due to large variations in sizes and models), we keep record of the materials used in our products through our systems. For this information, we rely on receiving accurate data from our suppliers.

Materials used in packaging: Products are packaged in the factory for protection, i.e., against humidity and dust. The packaging material is either paper-based (i.e., shoe boxes) or recycled low-density polyethylene (rLDPE) (i.e., polybags for apparel and some types of accessories). Additionally, paper-based transport packaging (i.e., cartons, corrugate) is used to ship products.

Other resource inflows: For water withdrawal during production processes, please SEE ESRS E3 WATER AND MARINE RESOURCES for more information. For other resource inflows we currently still lack reliable data.

Our packaging is 97.2% paper-based, with 84.5% made from recycled content. Plastic packaging represents 2.8% of our packaging materials, of which 82.5% is recycled LDPE. Several of our distribution centers have started to implement reusable transport packaging and continue to reduce packaging volume by optimizing box sizes and number of shipments. However, we are not yet able to report quantitative information on the impact these initiatives have on packaging reduction.

The share of biological materials in our overall materials portfolio is 37.4%, thereof 86.3% are sustainably sourced materials. For the definition of sustainably sourced biological materials, the cascading principle has been applied. In addition, we use the following certifications for sustainably sourced biological materials:

• For cotton: Better Cotton (mass balanced), US Cotton Trust Protocol, Organic Content Standard (OCS), Global Organic Textile Standard (GOTS), Global Recycled Standard (GRS), Recycled Claim Standard (RCS)
• For leather: Leather Working Group (LWG)
• For wool: Responsible Wool Standard (RWS)
• For down: Responsible Down Standard (RDS)

The share of recycled materials in our overall materials portfolio is 42.7%. Recycled textile materials are GRS or RCS certified. For EVA and rubber, we partly rely on supplier self-declaration, as certification is not yet available for some of the recycling processes used in footwear production. We do not purchase or track components or intermediary products, and therefore, the reuse of such components or intermediary products is not a business situation we encounter. For packaging materials data are based on LCA data.

Explanatory notes to our reported material use data

The presented product and packaging material use data are based on the following calculation methodologies and sources:

• Materials used in adidas products: Use data is based on Spring/Summer 2024 and Fall/Winter 2024 seasons.
• Materials used for packaging: Due to the decentralized nature of our distribution, it is difficult to collect primary data for packaging. Packaging material consumption is calculated based on 2024 sales data (volume by channel) and average packaging weights per product division (based on primary data collected in 2021). The ratio between virgin and recycled materials for polybags is based on primary data collected in 2021 and recycled content for cardboard is based on LCA data (EU-28: Corrugated board 2018). The average weights for secondary (transport) packaging are based on PEFCR. Due to the fact that we use recognized and widely applied data sources and methodologies, we consider our assumptions and calculations to be solid. However, we aim to start collecting primary packaging data for key parts of the supply chain in the upcoming years to improve accuracy in the future.
• For the purpose of presenting materials use data, the term “sustainable” includes recycled and sustainably sourced materials.
• Polyester, cotton, polyamide, wool, man-made cellulosic fibers, down as well as leather: Material use is derived from actual consumption data in the bill of materials as reported by Tier 1 suppliers and the material composition information provided by our Tier 2 suppliers. Due to the complexity stemming from the product construction of leather based footwear, we perform control checks on the weight of leather used for the main footwear models and apply a correction factor to calculate the final leather consumption.
• Polyester trims: Material use is reported in “Other synthetic materials”.
• Rubber, EVA, PU, TPU, TPR/TPE and other synthetic polymers for footwear bottom parts: Material use is based on actual consumption data in the bill of materials as reported by Tier 1 suppliers, supplemented by a calculated additive ratio, which is derived from the respective material formulation.
• Silica: Material use is calculated by applying a ratio, which is derived from the respective material formulation.

E5-5 – Resource outflows

There is currently no industry standard that clarifies circular economy principles for designing apparel and footwear products. Nonetheless, we are already following an approach that aims to consider sustainable resource use and circularity principles where possible SEE POLICIES SECTION FOR MORE INFORMATION. We will eventually adjust our approach when the expected adoption of the ESPR and other similar regulations provides more clarity on definitions and standards.

Durability, repairability and recyclability are neither legally defined nor standardized in the apparel and footwear industry, yet. One reason for this is the wide variety of product types and product purposes in scope. As part of the EU’s PEFCR and ESPR, several multi-stakeholder working groups are working to define standards in these areas. We are planning to align our approach with regulations and standards as soon as they become available.

• Durability: While there are currently no industry average metrics or standards in place that determine durability of apparel and footwear, we are constantly testing the quality and performance of our products (see section E5-2 on durability for more information regarding our testing protocols).
• Repairability: There is no average metric or standard for repairability in the apparel and footwear industry. Most of our apparel products can be repaired by consumers themselves or by any tailor. Our footwear can be repaired by shoemakers, however, some of our technical footwear products and sports accessories may not be repairable due to their design or construction. In case of defective products, we provide the legally mandated warranty. We have also piloted consumer repair services to understand how we can better serve customers in this area SEE E5-2 CIRCULAR SERVICES.
• Recyclability: As mentioned in earlier sections, recycling technology for apparel and footwear is in the early stages of development. Due to the lack of a standardized definition of recyclability and the respective infrastructure (collecting, sorting and recycling), it is not possible to claim recyclability for our products at this time. In the EU today, there is not yet an established process for the treatment of textile waste. While some countries have initiated efforts in this area, current practices vary significantly from country to country. In most cases, textiles still end up in the mixed waste stream (e.g., ‘residual waste’ in Germany), where they are mixed with all other types of waste. According to the Waste Framework Directive,³ textiles will have to be captured in a separate waste stream in all EU countries as of January 1, 2025. adidas expects that these waste streams will contain the materials disclosed in our resource inflow section E5-4.

As per the packaging materials table, we use only monomaterial packaging, which is fully recyclable. All our paper packaging is recyclable. The LDPE polybags used for apparel and some types of accessories are also recyclable.

1 Source: This standard is being applied since 2022. Percentage of sustainable articles (by count) offered at points of sale (average of Fall/Winter season of the current financial year and Spring/Summer season of the following financial year). When calculating the article weight, trims are excluded for apparel, footwear, and accessories and gear. Only articles with verified content of environmentally preferred materials are included. Licensed articles are excluded.

2 Ellen MacArthur Foundation: Fashion and the circular economy: Quote: “In such a system, clothes, textiles, and fibers are kept at their highest value during use and re-enter the economy after use, never ending up as waste”.

3 Source: Waste framework directive: As part of the revision of the Waste Framework Directive in 2023, the European Commission proposed harmonized Extended Producer Responsibility (EPR) regulations for textiles. This initiative aims to establish an economy focused on collecting, sorting, reusing and recycling textiles, while also ensuring that products are designed with circularity in mind. To achieve these objectives, the European Commission proposes to allocate a significant portion of the EPR contributions paid by textile producers to waste prevention measures and preparing items for reuse (EC, 2023).