Metrics and Targets

S1-5 – Targets related to managing material negative impacts, advancing positive impacts, and managing material risks and opportunities

Gender equality: Women in leadership targets

adidas is committed to increasing female representation in management positions and furthering equal employment opportunities. We have established a policy and set measurable, aspirational targets to help us realize our diversity, equity, and inclusion (DEI) ambitions for gender balance.

Global target: We are committed to increasing the global share of women in leadership positions (Director level and above) to achieve a gender balance of 50% by 2033 for Director (M2) and above positions, from a 2023 baseline of 39.6%.

Target for adidas AG Germany: We have set a target to achieve 40% female representation at both the first and second management levels below the Executive Board by 2025. This target is based on a 2023 baseline of 35.5% for the first management level below the Executive Board and 37.4% for the second management level below the Executive Board.

As part of our target-setting process, our People Insights and HR Data teams collaborate to propose new targets. Their proposals are based on simulations, historical data, current organizational directives, exit data, and external market trends. They are approved by the Executive Board, such as for our global and adidas AG Germany targets. The progress made toward our women in leadership targets is shared annually with all employees globally during Women’s History Month in March. Additionally, HR reviews our women in leadership targets every quarter to ensure continuous monitoring of opportunities and challenges.

Performance against these targets

With regard to the 2033 ambition to increase the global share of women in leadership positions (Director level and above) to 50% by 2033, from a 2023 baseline of 39.6%. The data as of December 31, 2024, shows:

The share of women in leadership positions (Director level and above) had increased to 40.7% compared to 39.6% in the fiscal year 2023. The share of female executives (S-level leaders) had stabilized in 2024 compared to the fiscal year 2023.

With regard to the 2025 target for adidas AG Germany: 40% for both the first and the second management level below Executive Board. As of the end of December, 31, 2024, shows:

• First management level below Executive Board: 36.1% (compared to 35.5% in the fiscal year 2023) (13 women; 23 men)
• Second management level below Executive Board: 38.2% (compared to 37.4% in the fiscal year 2023)(92 women; 149 men)

Women in leadership data is tracked monthly and on a quarterly basis to understand pipeline issues or DEI-related challenges.

Health and safety targets

adidas sets KPIs to fulfill and track the progress of our Health and Safety Policy, with the goal of minimizing work-related incidents. In 2020, we developed our five-year targets plan, which includes a focus on health and safety as a key component of our strategy. As part of this initiative, we had integrated three KPIs related to health and safety. Target values have been defined for

• the Lost Time Incident Rate (LTIR) (<1.3 based on the Occupational Health and Safety Assessment Series (OHSAS),
• zero fatalities, and zero occupational illnesses for corporate offices, showrooms, and distribution centers/production sites.

We discontinue reporting based on OHSAS and report based on ESRS as of 2024. Therefore, we added new KPIs, had to change the KPI calculation and consequently, also had to adjust the LTIR target value. Thus, for 2024 and 2025 our target for LTIR is <2.0. In terms of number of fatalities as result of work-related injuries and work-related ill health and number of cases of work-related ill health, our target stays zero. With regards to percentage of own workers covered by (an internally audited and/or third-party certified) health and safety management system our target is 100% coverage for corporate buildings/distribution centers¹ larger than 4500 sqm or with more than 50 HC (internal + external) at the end of 2025. As we added retail after corporate to be covered by a (internally audited and/or third-party certified) health and safety management system to our responsibility, we have an internal target, which is to roll-out the ISO 45001 (Occupational Health and Safety Management System) in 100% of our European own retail stores and showrooms² for 2025. For the number and rate of recordable work-related accidents and the number of lost days lost to work-related accidents, ill health and fatalities, we are striving for continuous improvement.

• Scope of the target: These targets refer to offices, distribution centers, own production sites, own-retail stores, and showrooms.
• The targets for Lost Time Incident Rate (LTIR), fatalities, and occupational illnesses for corporate offices, showrooms, and distribution centers/production sites have been defined in the past based on OHSAS. Due to the new scope that includes adidas’ own retail stores, these targets were adjusted. Consequently, the calculation of the LTIR will be changed to 1,000,000 working hours in accordance with ESRS requirements.
• Baseline value and base year from which progress is measured: In the previous years we calculated this in accordance with OHSAS (Occupational Health and Safety Assessment Series). However, from 2024 onwards we will calculate in accordance with the ESRS requirements. Up until 2023 our baseline value for LTIR was <1.3 and the baseline year was 2020. For 2024 and 2025 , our baseline value is LTIR <2.0 and the baseline year is 2024.
• Period to which the target applies: As we are transitioning from OHSAS to ESRS we are updating our health and safety roadmap. In the meantime, we continue to track our progress of related KPIs to minimize work-related incidents.
• Methodologies and significant assumptions used: The development of our workforce health and safety targets is guided by our Health and Safety Manual, ISO 45001 (Occupational Health and Safety Management System) certification and ESRS.
• Whether and how stakeholders have been involved in the target setting, tracking the undertaking’s performance against them; and identifying any lessons or improvements as a result of the undertaking’s performance: The 2025 targets have been developed through cross-functional and global working groups involving multiple stakeholders. Additional KPIs have been formulated within the health and safety network and Health & Safety, Environment, and Energy team and have been agreed upon and approved. Every location tracks its own performance. On a global level, the performance is tracked by the Health and Safety, Environment, and Energy team and the Integrated Management System certification (Internal Audit department and external auditor).
• Any changes in targets and corresponding metrics or underlying measurement methodologies: Due to the requirements of the ESRS the calculation methodology was adjusted. The old baseline was based on Occupational Health and Safety Assessment Series (OHSAS) standards.
• Performance against its disclosed targets: We track performance against currently available data related to our target development. We identify and acquire further essential data in the course of our Health and Safety, Environment, and Energy (HSEE) own operations data strategy.

Equal pay gap target

Our ambition is to identify and monitor gender pay gaps and take concrete measures to close them. We intend to do this globally across all countries with adidas employees, in line with but not necessarily limited to the scope of the European Directives.

Based on our current calculation methodology (see section S1-16, ‘Remuneration Metrics – Pay Gap’), our current overall equal pay gap is below 1%, and we are committed to reducing it further.

Maintaining close collaboration between involved functions (HR DEI, HR Rewards, Talent Acquisition, and HR Business Partners) will help us expand our methods and analysis towards more granular population data, calculating investment budgets, and potentially investing in salary adjustments to close existing gaps.

• Defined target level to less than 5%.
• Scope of the target: Global, all countries.
• Baseline value and base year from which progress is measured: Less than 1% respectively specific figure reported in S1-16 for 2024.
• Period to which the target applies: Ongoing.
• Methodologies and significant assumptions used: Equal pay gap is an aggregated like-for-like comparison which considers employees in the same country, on the same grade, and within the same job family.
• Whether and how stakeholders have been involved in target setting: HR Rewards and HR DEI teams were involved in the target setting process. Since it is the first year of reporting, performance review will be conducted in 2025, after the first reporting year, while also assessing lessons learnt .
• Any changes in targets and corresponding metrics or underlying measurement methodologies: First year of reporting, hence no changes in measurement.
• Performance against its disclosed targets: See S1-16 for current performance.

S1-6 – Characteristics of the undertaking’s employees

The total number of employees by head count, and breakdowns by gender and country for countries in which the undertaking has 50 or more employees, represents at least 10% of our total number of employees by the end of the reporting period:

Please also refer to the Group Management Report – Financial Review in this report.

Total number by headcount (HC) of permanent employees as well as temporary employees is shown in the following table, including a breakdown by gender.

The numbers are reported in headcount and extracted from the central HC system. They reflect the actual headcount as of 31st of December 2024.

Our part-time employment contracts often include employees who, due to different circumstances, require flexibility around their working time. Part-time work is a particularly effective way of combining work and family life. Flexible working time arrangements are a part of our Job Security Company Agreement, and adidas supports the willingness of its employees with family commitments to reduce their working time when possible.

The non-guaranteed hours employees are employed without a guarantee of a minimum or fixed number of working hours. The employee may need to make themselves available for work as required, but the undertaking is not contractually obliged to offer the employee a minimum or fixed number of working hours per day, week, or month. Casual employees, employees with zero-hour contracts, and on-call employees are examples that fall under this category.

To gather data on non-guaranteed hours of employees, we established a questionnaire including all relevant data from the European Sustainability Reporting Standards (ESRS) framework. Through the annual European Sustainability Reporting Survey, the number of non-guaranteed employees is collected by the respective legal entity³. Local HR leads are responsible for reporting data back to the global HR Governance team, which consolidates the results to ensure all legal entities of adidas are considered. A list from the Supervisory Board Office is requested annually and cross-checked with the survey data of the previous year. From Q4 2024 onward, the collected data will be reviewed annually by the local HR leads via an online data collection process.

The total number of employees who have left the undertaking during the reporting period and the rate of employee turnover in the reporting period are explained in the following.

Turnover: 17,711 leavers in 2024 with an overall turnover rate of 30%.

Data is reported from the company’s global HR system on December 31 of the respective year. Turnover is reported across the reporting period according to the following methodology:

Turnover includes all leavers from corporate as well as volatile business areas of retail and distribution centers (higher turnover due to seasonality of business). Terminations include both voluntary and involuntary ones:

• Voluntary termination is defined as employee initiated. The termination date is the last day of the contractual relationship.
• Involuntary termination is defined as company initiated or death of an employee. The termination date is the last day of the contractual relationship.

Workforce definitions and categorizations

Employees are persons who have an established employment engagement with an adidas legal entity. The workforce is usually categorized into the following groups:

• Corporate: Responsible for the following job family groups:
  • Brand Management & Communications
  • Corporate Services
  • Data Analytics & Data Science
  • Design
  • Digital
  • Finance
  • General Management & Business Development
  • Legal & Regulatory
  • Merchandising & Planning
  • People & Culture
  • Product Development & Operations
  • Real Estate & Facilities
  • Sales
  • Sourcing
  • Supply Chain Management
  • Technology
• Distribution center employees: Responsible in our planning and services teams for productivity and logistics planning and services around inventory, quality, and reporting. In our distribution centers, operations teams oversee the receipt, storage, and shipment of products and related reporting.
• Retail employees: Responsible for adidas retail operations and the promotion and sale of in-store products and services directly to end-consumers. Their activities include store management, development, and sales.
• Production employees: Responsible for setting up, operating, maintaining, and troubleshooting manufacturing production (i.e., machining, processing, assembly, or modifying) equipment for any factories and centers. They help to ensure smooth, innovative, and cost-efficient production processes with optimal capacity utilization.

The following table provides an overview of adidas’ full-time employees, broken down by gender and region:

The following table provides an overview of adidas’ part-time employees, broken down by gender and region:

S1-8 – Collective bargaining coverage and social dialogue

The percentage of adidas employees covered by collective bargaining agreements is at 18%.

As there is no centralized tool for capturing the collective bargaining rate globally, we collect this data via a questionnaire, which includes all relevant data based on the ESRS framework⁴. Local HR leads are responsible for reporting this data back to the HR Strategy & Excellence team, which consolidates the results. From Q4 2024 onward, the collected data will be reviewed annually by our local HR leads. We will also use the results for purposes beyond the ESRS report, such as global HR projects to manage the involvement of local worker representative groups.

Collective bargaining agreements in the European Economic Area (EEA)

Germany is the only country with significant employment in the EEA, thus the collective bargaining coverage corresponds with the one in Germany and equals 53,3%. For the remaining approximately 50% of employees that fall under the German co-determination act, agreements with local works councils are in place. Collective bargaining rights are in place for all professional and management employees (P- and M-level grades). For all executive employees (S-level grades), individual contractual regulations and policies apply. Procedures outside of Germany are in line with local legislations.

Collective bargaining agreements outside of the European Economic Area (EEA)

Non-EEA countries that have significant workforce (following ESRS’ requirement defined as at least 50 employees by headcount representing at least 10% of its total number of employees) at adidas are China and the USA. Based on the survey results, adidas workforce in these countries is not covered by collective bargaining agreements.

adidas has concluded a company agreement with the European Works Council. Information gathering for works council-related set-ups, content, and agreements in place is currently manually conducted.

The adidas AG Labor Relations team is implemented for Germany and the European Works Council, but currently has no oversight role. Additionally, we have contact persons for labor relations in each region. The local entities are accountable for complying with statutory regulations and company-specific agreements.

S1-9 – Diversity metrics

The gender distribution at top management level was the following in 2024: 40.7% women in leadership (Director level and above); 1,441 women and 2,097 men.

Top Management consists of executive (VP and SVP level) and middle management (Director and Senior Director level). The target applies to anyone who is either executive or middle management.

For adidas Germany, there is a specific legal obligation to report on both the first and second management levels below the Executive Board, in compliance with German Second Leadership Positions Act (FüPoG II).

As of December 31, 2024:

• First management level below Executive Board (Board –1) was 36.1% women
• Second management level below Executive Board (Board –2) was 38.2% women

The following table provides an overview of the distribution of employees by age group, divided into the categories of under 30 years old, 30 – 50 years old, and over 50 years old:

The methodology is the same as described above regarding the characteristics of adidas’ workforce.

S1-10 – Adequate wages

All adidas employees are paid an adequate wage.

We mainly used data of our own HR systems complemented by data of an external data provider plus other publicly available data sources where relevant.

S1-14 – Health and safety metrics

Managing the health and safety of our global workforce is one of our highest priorities. Our infrastructure, assets, and operations are aligned with ISO 45001 (Occupational Health and Safety Management System). The certification of ISO 45001 is issued by the German accreditation office DAkkS (Deutsche Akkreditierungsstelle), and the compliance with the standard is audited by an external auditor. We also consistently perform internal and external audits to maintain a healthy, safe, and secure work environment for all employees. To track our progress and identify areas for enhancement, we closely monitor our performance and risk assessments. Our health and safety trainings have been carried out across the organization, and our distribution center framework guidelines have been rolled out.

In 2024, the percentage of our employees covered by adidas’ health and safety management system was 96% for our corporate and distribution center employees⁵. For our own retail employees (also covered by ISO 45001)⁶, the percentage was 10%, globally. The scope of the system is defined by locations ≥4,500 sqm or ≥50 employees (corporate buildings and distribution centers) and 100% of our European own retail stores and showrooms.⁷

During 2024, we recorded zero fatalities as result of work-related injuries and work-related ill health for our employees in corporate, distribution centers, retail and other workers, operating at the company’s sites.⁸ The number and rate of recordable work-related accidents in 2024 was 591 and 5.7, respectively, for our employees in corporate, distribution centers and retail.⁹

Regarding work-related ill health, we recorded zero cases among our employees in corporate, distribution centers and retail in 2024.¹⁰

The number of days lost to work-related injuries and fatalities from work-related accidents, work-related ill health, and fatalities from ill health were 2,366 days in 2024. These days lost refer to work-related accidents for our employees in corporate, distribution centers and retail.¹¹

In 2024, we recorded a Lost Time Incident Rate (LTIR) of 1.37 for our employees in corporate, distribution centers and retail.¹²

S1-16 – Remuneration metrics (pay gap and total remuneration)

Pay gap

We are firmly committed to fostering a culture of gender equality and equal pay for equal work. Therefore, we have developed and implemented the various policies, actions, and targets outlined in this report. To measure our progress and ensure we make well-informed decisions, it was first necessary to have clearly defined metrics and an in-depth understanding of the generated data.

Following our commitment of equal pay for equal work, we first calculated an equal pay gap. It provides a like-for-like comparison that considers employees in the same country and on the same grade. Then applying a weighted average to all calculated pay gaps, leads to an overall aggregated equal pay gap below 1.0%. This result highlights our efforts to achieve pay equity and our commitment to addressing any disparities.

However, the pay gap calculation logic as per the ESRS is based on a ‘gender pay gap,’ expressed as per below formula:

The result of this formula reflects the average pay difference between male and female employees, expressed as percentage of the average pay level of male employees across all functions, countries, and grades of our organization. This figure is influenced by several factors. The resulting gender pay gap per ESRS is 13.3%, mainly influenced by our share of women in leadership positions. As this share will grow (see ‘Gender equality: Women in leadership targets’), the gender pay gap according to ESRS will decline, while an equal pay gap may be relatively insensitive to it.

We used our employees’ hourly contractual/target Total Direct Compensation (TDC) data as per the key date of December 31, 2024. All active employees were included.

Total remuneration

To calculate the total remuneration metric, the median compensation of all employees was determined based on their annual contractual/target direct compensation (TDC), i.e., contractual base pay, target short term bonus (STI), and target long term bonus (LTI). We used our employees’ annual contractual/target TDC data as per December 31, 2024, projected to a full time employment. All active employees were included. All remuneration components (including typical benefits in cash/in kind) were then determined for the person with median remuneration. We then compared the total actual remuneration of this person with the total actual remuneration of the highest paid individual in 2024. Per the Disclosure Requirements of ESRS, the following formula is applied for the annual total remuneration ratio:

Based on the above formula, the annual total remuneration ratio of the highest-paid individual to the median annual total remuneration for all employees is 177. This ratio is heavily influenced by adidas’ global footprint and the high share of retail-related roles within the company. When comparing total actual remuneration to the average among employees in Germany in 2024, as disclosed in our Compensation Report, the ratio is 63. ADIDAS-GROUP.COM/S/COMPENSATION

S1-17 – Incidents, complaints, and severe human rights impacts

Regarding the total number of incidents of discrimination, including harassment, in 2024, there were 86 cases of harassment (all forms) and 59 cases of discrimination (all forms) reported for investigation.

Of these, 15 incidents of discrimination and 22 incidents of harassment were confirmed within adidas’ own operations. The outcomes of the cases were managed in line with our Consequence Management Policy.

For the 2024 fiscal year, 1,246 incidents were filed (via the Fair Play channels) relating to our own workforce. Of these, 1,049 incidents (including harassment and discrimination) are related to the social factor definition of the standard.

In 2024, there were no material fines, penalties, compensation for damages, or sanctions imposed on the company.

adidas is made aware of any incidents or concerns through our Fair Play channel (see more information on the Fair Play channel under S1-3). This channel can be used by employees and external stakeholders to raise any kind of concerns. This also includes potential allegations made regarding human rights violations. The information on incidents raised, investigations conducted, and their outcomes is maintained in our Case Management System (CMS). The CMS data can be extracted to report on incidents, outcomes, and/or potential fines paid. Every year, all market/country legal representatives are asked to confirm any fines, sanctions, or compensations paid in the year under review. This can be compared to CMS data to ensure accuracy and completeness.

1 In the context of ISO 45001 retail backoffice employees are also in scope.

2 In the context of ISO 45001 own retail stores refers to roles in retail stores who have direct consumer contact (shop floor, staff, cashiers, etc.).

3 The data query is conducted in September. Based on our experience, we assume that the number of non-guaranteed hours employees does not significantly change through months October to December, and therefore, we report these figures as an estimate as of the year’s end.

4 The data query is conducted in September. Based on our experience, we assume that the coverage by collective agreements does not significantly change through months October to December, and therefore, we report these figures as an estimate as of the year’s end.

5 In the context of ISO 45001, retail backoffice employees are also in scope.

6 In the context of ISO 45001 own retail stores refers to roles in retail stores who have direct consumer contact (shop floor, staff, cashiers, etc.).

7 We cover both S1-14 § 90 and § 88a with our KPI and it is calculated as follows: Corporate/distribution centers: number of employees covered by ISO 45001 divided by total number of employees multiplied by 100; own retail/showrooms: number of employees covered by ISO 45001 divided by total number of employees multiplied by 100; please refer to Health and Safety target section for methodologies and significant assumptions used. Validation by external body: please see the adidas ISO 45001 certificate and its appendix.

8 Number of fatalities as result of work-related injuries and work-related ill health: number of fatalities. Reporting of ill health fatalities relies on the respective local regulations; the reporting regarding fatalities is consistent with the incident reporting process; please refer to Health and Safety target section for methodologies and significant assumptions used.

9 Number of recordable work-related accidents excludes business travel commuting, sport and event accidents; the rate of recordable work-related accidents = number of accidents per month multiplied by 1,000,000 hours divided by total working hours per month – the total rate is the average out of all the rates for 12 months; please refer to Health and Safety target section for methodologies and significant assumptions used.

10 Number of cases of recordable work-related ill health (subject to legal restrictions of data collection): Reporting of ill health fatalities relies on the respective local regulations; please refer to Health and Safety target section for methodologies and significant assumptions used.

11 Number of days lost to work-related accidents, ill health and fatalities: sum of lost days to work-related accidents (excluding business travel commuting, sport and event accidents), ill health and fatalities. Reporting of ill health fatalities relies on the respective local regulations; please refer to Health and Safety target section for methodologies and significant assumptions used.

12 Number of work-related injuries with one or more lost days (excluding business travel, commuting, sport and event accidents) per month multiplied by 1,000,000 hours divided total working hours per month – the total rate is the average out of all the rates for 12 months. Please refer to Health and Safety target section for methodologies and significant assumptions used.