Annual Report 2024

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ESRS 2 General Disclosures

SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and business model

The results concerning material impacts, risks and opportunities for matters related to business conduct from our double materiality analysis are as follows:

SBM-3 – Business conduct and material impacts, risks and opportunities (IROs)

Sub-topic

 

Material IRO

 

Classifi­cation

 

Time Horizon

 

Value Chain

 

Description

Corporate culture

 

Negative Impact

 

Actual

 

n.a.

 

Up-stream, Own Operations, Down-stream

 

Unfair treatment might lead to financial loss and/or negatively impact the well-being of relevant stakeholder groups, e.g. our employees, suppliers, business partners, and customers.

Corporate culture

 

Risk

 

n.a.

 

Short-term

 

Own Operations

 

adidas relies on its people and leaders to achieve strategic goals. Failure to create an inclusive workplace for all employees that is non-exclusionary and is non-discriminatory, could reduce creativity, innovation, employee satisfaction, and engagement. This may hinder the ability of adidas to foster a performance culture, execute its strategy, and meet its objectives, which may ultimately have negative effects on our financial performance.

Protection of whistle-blowers

 

Negative Impact

 

Actual

 

n.a.

 

Up-stream

 

Even with elaborate whistleblower protections in place, there can still be negative personal impacts if these measures fail in certain cases.

Management of relationships with suppliers including payment practices

 

Negative Impact

 

Actual

 

n.a.

 

Up-stream

 

Managing relationships with suppliers, especially SMEs, is crucial to maintaining a healthy and sustainable supply chain. Effective communication and transparency are the foundation of these relationships. It’s important to maintain regular and open dialogue with suppliers, ensuring that any issues can be addressed promptly. Clearly outlining payment terms and conditions in contracts helps avoid misunderstandings and ensures that suppliers are fully aware of what to expect.

Prevention and detection including training

 

Negative Impact

 

Actual

 

n.a.

 

Own Operations

 

Unfair market practices, such as biased partner selection and inconsistent commercial terms (payment, price, delivery, etc.), might negatively impact business partners who have not been given a chance to present their products or services. This exclusion can lead to missed opportunities, reduced market presence, reputational damage, and financial challenges.

Prevention and detection including training

 

Risk

 

n.a.

 

Short-term

 

Own Operations

 

Allegations and cases of corruption or bribery could result in fines, criminal penalties and civil damage claims against adidas, its managers or employees, as well as reputational damage to the company. Allegations or cases of corruption or bribery might involve our business partners or suppliers and their respective employees, or agents acting on behalf of adidas.

Incidents

 

Negative Impact

 

Actual

 

n.a.

 

Up-stream, Own Operations, Down-stream

 

Confirmed incidents during the reporting period. Unfair market practices, such as biased partner selection and inconsistent commercial terms (payment, price, delivery, etc.), might negatively impact business partners who have not been given a chance to present their products or services. This exclusion can lead to missed opportunities, reduced market presence, reputational damage, and financial challenges.

We do not expect any presented business conduct related risks to result in any additional major risks for the forecast for the 2025 fiscal year compared to the explanations given in the Risk and Opportunity Report.