Resource Use and Circular Economy
The footwear and apparel industry is resource intensive and has impacts on the environment along the entire value chain, from raw materials extraction to product manufacturing and end-of-life. We strive to mitigate these impacts through responsible sourcing practices, the use of sustainable materials1 and strict waste management in our value chain. With our long-term circularity strategy, we are working toward gradually embedding circular economy principles into our business model.
Impacts, risks and opportunities
Impacts
- Dependency on renewable and nonrenewable resources leading to adverse environmental impacts
- Lack of circular product end-of-life solutions leading to waste generation
Risks
- Increased sourcing costs for materials mandated through regulations (e.g., ESPR: Ecodesign For Sustainable Products Regulation)
- Higher operating costs related to the establishment of circular infrastructure in our industry (e.g., EPR: Extended Producer Responsibility)
Targets
To address the multifaceted challenges of resource use and the circular economy, we have defined specific targets to effectively steer these interconnected topics.
Key actions & metrics
In 2024, our actions continued to address the key challenges to embed circular economy principles in our business.
Our key actions
- Strengthen our foundation, such as improving our product and material data tracking and accuracy
- Increasing the use of sustainably sourced materials in our products
- Engaging in multi-stakeholder initiatives to build a blueprint for a circular textile industry (e.g., EU-funded projects T-REX and New Cotton, Fashion for Good innovation platform)
Materials used in adidas’ products in 20241
|
|
Total material weight |
|
Share within total |
||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
Materials used for products |
|
456,227 |
|
77.6 |
||||||||
Materials used for packaging |
|
131,915 |
|
22.4 |
||||||||
Total materials |
|
588,142 |
|
100 |
||||||||
Thereof total recycled materials2 |
|
249,743 |
|
42.7 |
||||||||
Thereof total biological materials3 |
|
219,020 |
|
37.4 |
||||||||
|
||||||||||||
Policies
We have adopted multiple policies, guidelines and standard operating procedures that anchor our approach to resource use and circular economy in the management of our business. An overview of these policies can be found in the topical standard of E5.
1 We consider a material sustainable or sustainably sourced when it has a lower environmental and/or social impact than its conventional equivalent. We validate materials against a pre-defined set of impact criteria which is closely aligned with Textile Exchange’s Preferred Fiber and Materials Matrix (PFMM).
2 Where technically possible
3 Source: Textile Exchange Recycled Polyester Challenge Dashboard; 2024 value for global apparel industry is an estimate