ESRS 2 General Disclosures

Upstream impacts on water happen either during agricultural or production processes. In agricultural processes, the impact comes mainly from the use of chemicals that can compromise the quality of fresh water. In production processes, the impact is mainly present during the dyeing and tanning phases, as these are water-intensive processes and lead to potential discharge of chemicals.

Multiple chemicals used in our production (Tier 1, Tier 2 and raw material production) are classified as substances of concern. They are difficult to substitute in our industry, as alternatives either do not exist or are costly and/or difficult to obtain and manage. The use of substances of concern leads to adverse impacts on the environment.

For adidas, the risk associated with the use of substances of concern could be related to:

• Stricter regulations, either in sourcing or importing countries, potentially leading to higher operating costs for suppliers and/or market accessibility challenges.
• Increased requirements for traceability and transparency of substances of concern throughout the supply chain, leading to higher operating costs for adidas.

Microfibers are generated during the production and use phase of adidas products. Due to the lack of a holistic methodology in the textile industry, it remains difficult to define the exact extent and nature of the impact.