Impact, Risk and Opportunity Management

E1-2 – Policies related to climate change mitigation and adaptation

E1-3 – Actions and resources in relation to climate change policies

Our actions and measures that are guided by our climate change policies aim to address all identified material impacts, risks, and opportunities, such as improving our management of energy, reducing GHG emissions, mitigating our negative climate impacts, and adapting to climate-related risks as described in SBM-3 Resilience Analysis Table. Stakeholders affected are mainly our upstream suppliers and internal business areas. If not indicated otherwise, all actions mentioned are intended to be ongoing without a set completion date.

The levers presented in our climate strategy aim to reduce GHG emissions in the near term and lay the foundation for achieving our ambition to become net-zero by 2050. In this regard, we recognize the need for continuous innovation, cross-industry collaboration, and policy support.

Climate and financial impacts are integrated into adidas’ budgeting and financial planning processes. Initiatives within our operational control are first evaluated for feasibility, environmental benefits, and financial impacts before funding requirements are incorporated into the annual budgeting cycle. For Scope 3, we are working with industry peers and sector initiatives to explore financing and incentive models that can support decarbonization across the supply chain.

Scope 1 and 2 GHG emissions related actions

• Data coverage: In 2025, we increased primary energy data coverage for our own retail sites by two percentage points compared to the previous year, reaching 45% globally. Data coverage for administrative offices and distribution centers is 100%, while data for showrooms and smaller offices was estimated.

• Renewable energy and energy efficiency: At our own sites, we continuously increase the share of renewable electricity. In 2025, we expanded our on-site solar PV at the distribution center in Colón and implemented efficiency upgrades across regions, as well as secured on-site Power Purchase Agreements (PPAs) for our Herzogenaurach headquarters and the e-commerce Fulfillment Center (EFC) in Rieste. Our European Virtual Power Purchase Agreement (VPPA) project became operational in 2025, resulting in a 23% reduction in absolute emissions across our European operations for the year. The North American VPPA is scheduled to become operational in 2026.

• Environmental risk assessment: We carry out environmental risk and opportunity assessments for our facilities (by 2025, 317 facilities were covered by ISO 50001 and 75 facilities were covered by ISO 14001) to identify improvement opportunities and, at an early stage, any potential risks which could affect our ability to meet our GHG emissions reduction targets.

Scope 3 GHG emissions related actions

• Renewable energy (RE) and energy efficiency (EE): We collaborate with our key Tier 1 and Tier 2 suppliers to adopt energy-efficient equipment and processes. Our Environmental Good Practices Guidelines (EGPG) provide a comprehensive list of best practices for reducing energy use. We encourage suppliers to periodically conduct energy audits, identify energy-reduction initiatives, and implement them. Our suppliers are also asked to scale up the use of electricity from RE sources and move toward our aspirational goal of maximizing RE usage, wherever possible, by 2030. During 2025, suppliers participating in our environmental program sourced 26.4% of their electricity from renewable sources through on-site electricity generation and/or procurement via PPAs, as well as high-quality Energy Attribute Certificates (EACs) where sourcing or scaling up of electricity from rooftop solar and/or RE PPAs was not possible/limited. 8% of the electricity used by our key suppliers is sourced from rooftop solar PV systems, with the majority of our suppliers having maximized the viable potential of rooftop solar PV electricity generation within existing policy constraints. In many of our sourcing countries, governments have initiated targeted policies to transition their national power grids toward renewable sources. The steady – albeit slow – progress on the path to greening the grids will provide additional, external tailwind for our supplier base to increase the usage of RE.

• Coal phase-out: Coal-based thermal energy remains a material source of Scope 3 emissions in the manufacturing of adidas products. In line with our Climate Transition Action Plan, adidas implemented a dedicated coal phase-out program with Tier 1 and Tier 2 suppliers to replace coal-fuelled boilers with lower-carbon energy solutions, such as biomass or natural gas, wherever feasible. By the end of 2025, most of targeted supplier sites had either completed the transition or were exited from the supply base, making this a key driver of product carbon-intensity reduction.

• Process improvement and innovation: Developing and scaling innovative solutions in material processing, manufacturing, and product assembly can help adidas reduce its GHG emissions. Through our innovation team, we scout, pilot, and explore the scaling of such innovations as part of our climate strategy.

• Material innovation: Scaling the use of low-carbon materials. The materials we use in our products are a key contributor to our carbon footprint. This impact is mainly attributable to the use of five materials: (animal) leather, recycled polyester, ethylene-vinyl acetate (EVA), cotton, and rubber. In 2025, we continued our efforts to evaluate low-carbon material alternatives, including recycled and bio-based options. As part of this commitment, we have made significant progress in transitioning from virgin polyester, with 99% of all polyester – our most widely used material – sourced from recycled polyester since 2023. see ESRS E5-3 – Targets related to resource use and circular economy see ESRS E5-4 – Resource inflows

• Other levers:

  • Inbound transportation: Most of our transportation is by sea and truck, and only a very small proportion is by air freight (2% in 2025). We recognize the role that biofuels and alternative fuels could play in reducing emissions from maritime transport. Therefore, in 2025, we began exploring with our logistics partners the feasibility, benefits, and constraints of a progressive transition. We also focus on continuously improving our planning and go-to-market capabilities to minimize the use of air freight for delivering products.

  • Packaging: Although packaging accounts for only a small proportion of our GHG emissions, we focus on using more recycled and sustainably sourced renewable materials,¹ while optimizing box sizes and the number of shipments. In 2025, 85% of our primary cardboard packaging was recycled, while 98% of our polybags were made of recycled plastic.

Industry collaboration-related actions

• Suppliers’ SBTi targets: We regularly engage with various industry experts and provide assistance to our key suppliers to establish their SBTi targets. In 2025, we completed the delivery of the SBTi upskilling program for our suppliers, providing them with the skills needed to identify and quantify their Scope 1, 2, and 3 GHG emissions and to build roadmaps for reducing these emissions.

• Advocacy and industrial engagement: adidas collaborates with industry associations and organizations to support government policies that accelerate the energy transition, including those related to PPAs and rooftop solar projects. We are part of several organizations that promote lower-carbon processes and renewable energy in sourcing countries and across the industry. adidas is a member of the UNFCCC Fashion Industry Charter for Climate Action Steering Committee and the Fashion Pact, both focused on enabling suppliers to adopt renewable energy and advocating for stronger energy policies. We are also a member of Fashion for Good (FFG) to help identify and scale innovations in materials and production processes for the industry. As a member and ESG Committee chair of the World Federation of the Sporting Goods Industry (WFSGI), adidas helps shape the WFSGI decarbonization strategy and roadmap, supporting the industry’s collective decarbonization efforts.

• Circular business models: adidas supports the ecosystem and different organizations to set up the necessary infrastructure to enable circular business models, extend the life cycle of products, and aim to reduce GHG emissions at end-of-life. We will continue refining our approach and identifying relevant actions to be implemented across our entire value chain operations. SEE ESRS E5 – RESOURCE USE AND CIRCULAR ECONOMY

• Advocacy and ‘just transition’: We are committed to contributing to a net-zero future by creating pathways that are inclusive, equitable, and just. This means empowering communities, protecting workers' rights, and fostering sustainable opportunities (a ‘just transition’). To achieve this, we collaborate with a range of external stakeholders, including athletes, sports organizations, and civil society partners, to support community-based initiatives that strengthen resilience and promote sustainability through sport.

• Move For The Planet: This global initiative is focused on sustainability education through sport and on improving places where we play sports. Its goal was to encourage adidas’ stakeholders to sign up for the Move For The Planet challenge and turn collective movement into collective impact for local communities. As a result of the 2025 activation, more than 2.8 million participants worldwide tracked almost 735 million minutes of movement on the adidas Running app and STRAVA. adidas pledged to donate € 1 to its partner organizations Common Goal and United Nations Climate Change for every ten minutes of movement logged – up to € 1.5 million. The funds support projects that provide education on sustainability through sport and help make sports facilities more resilient against extreme weather conditions, such as heat waves and flooding.

Data and transparency-related actions

• Product footprint calculation: Data and transparency are critical enablers for translating our climate strategy into measurable action. Decisions made during product design and development have a significant influence on environmental impact and our carbon footprint. We use an in-house tool to measure the environmental footprint, including GHG emissions, of our footwear and apparel products. Aligned with ISO 14067:2018 and independently verified, this tool is integrated into our product creation systems to enhance speed, accuracy, and decision-making. It also supports key accounts and partners by providing product-level data for Scope 3 emissions reporting, fostering shared accountability for reducing impact.

• Data accuracy: We collaborate with our suppliers to gather primary data on fuel consumption, electricity use and its sources, water, waste, chemicals, and other inputs to track their progress on our sustainability and decarbonization initiatives. We drive better data accuracy by providing our suppliers with clear guidance and making them accountable for timely and accurate reporting. We also engage with third-party assessors to verify that these data are documented in line with the defined standards.

1 Textile Exchange refers to these as fibers produced from renewable resources, such as plants or agricultural waste, using practices that minimize environmental impact throughout the lifecycle.