Annual Report 2024

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The image shows three men posing towards the camera. They are wearing cricket uniforms with logos indicating they are part of the Indian cricket team. One player is smiling directly at the camera while the other two are laughing and looking away from it.
ESRS G1

Business Conduct

We consider adequate business conduct to be imperative and adidas has established high ethical standards that we are committed to upholding. Supplier management is a fundamental aspect of our success, as we do not produce ourselves, and our Human Rights and Environmental Risk Due Diligence (HREDD) system supports us in fulfilling our legal obligations.

Impacts, risks and opportunities

Impacts

Corporate culture
  • Unfair treatment might lead to financial loss and/or negatively impact the wellbeing of relevant stakeholder groups, e.g., our employees, business partners

Relationships with suppliers, including payment practices
  • Clearly outlining terms and conditions in contracts helps avoid misunderstandings, and our HREDD system provides a framework for managing risks

Corruption and bribery
  • Unfair market practices, such as biased partner selection and inconsistent terms and conditions might negatively impact business partners
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Key metrics & actions

adidas maintains several standard processes, systems, and practices to ensure that we conduct our business in line with internal policies as well as external legal requirements.

Compliance management system (Fair Play)

Establishes the organizational framework for company-wide awareness of our internal rules and guidelines and for the legally compliant conduct of our business.

Prevention and detection of corruption and bribery

In line with our Code of Conduct and our Compliance Policy, adidas strictly prohibits all acts of corruption and bribery, regardless of the identity or position of the parties involved: adidas does not and will not engage in bribery or corruption or any activity that could be perceived as such.

Management of relationships with suppliers

Our HREDD framework guides internal risk assessment and risk management processes in accordance with the United Nations Guiding Principles on Business and Human Rights & OECD Guidelines for Multinational Enterprises. With various supplier assessment tools as well as our supplier selection practices, we believe we are well equipped to ensure that we select the right partner for the success of our business and to manage adverse impacts on human rights and on the environment.

Payment practices

60 days standard payment terms
92%1 on-time payment 1 Out of our 51% suppliers that are in line with the 60 days of standard payment terms.
0 legal proceedings currently outstanding for late payments

Policies

We have adopted multiple policies, guidelines and standard operating procedures that anchor our approach to business conduct in the management of our business. An overview of these policies can be found in the topical standard of G1.