
Climate Change
Climate change is a material issue for adidas across its entire value chain, with most GHG emissions arising upstream. Physical risks, including changing weather patterns and more frequent extreme events, could affect material availability, supplier operations, logistics and infrastructure, with implications for costs and continuity of supply. adidas also faces transition risks linked to emissions pricing, regulation and increased stakeholder scrutiny. Addressing these risks also creates strategic opportunities: increasing the share of renewable electricity, improving energy efficiency, accelerating the coal phase-out in the supply chain and reducing product carbon intensity to strengthen supply chain resilience and support long-term value creation.
Our climate strategy levers and actions
Our climate strategy is based on the defined decarbonization levers and actions to reduce GHG emissions across the value chain, with a focus on Scope 3 GHG emissions in our upstream value chain.
Scope 1 and 2 GHG emissions (own operations)
- Drive energy efficiency at our sites
- Increase the share of renewable electricity
- Conduct environmental risk assessment for our facilities
Scope 3 GHG emissions (supply chain)
- Maximize the use of renewable electricity and drive energy efficiency
- Phase out the use of coal wherever feasible
- Develop and scale lower-carbon materials and innovative solutions in material processing, manufacturing, and product assembly
Targets
Our climate strategy targets are validated by the SBTi and in line with a 1.5°C pathway – the most ambitious goal established by the Paris Agreement – contributing to a net-zero1 future.
Climate strategy targets
Progress during the year was supported by the delivery against key mitigation levers, including significant advances in phasing out coal from our suppliers (where feasible), increasing the use of renewable electricity across our own operations and supply chain, and continuing to scale lower-carbon materials. Baseline 2022, in kg CO2e
1 Net-zero: As per SBTi, net-zero GHG emissions are achieved when human-caused GHG emissions are balanced by removing the same quantity of emissions from the atmosphere over a specified period (‘net-zero’ future). This is necessary at the global level to stabilize temperature increase at 1.5°C. In line with the SBTi criteria, we aim to achieve net-zero by cutting all our possible GHG emissions (by more than 90%) through direct GHG emission reduction actions and neutralizing the residual GHG emissions through permanent carbon removal and storage.