Annual Report 2025

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Football player in a blue Japan adidas jersey smiling in a stadium. (Photo)

Impact, Risk and Opportunity Management

E2-1 – Policies related to pollution

E2-1 – Policies related to pollution

Policies1

 

Content

 

Scope

 

Senior level responsible

 

Third-party standards/ initiatives2

 

Stakeholder consideration

 

Availability

Environmental Guidelines

(P, S)

 

Describes ways to prevent pollution, manage and control environmental impacts, and avoid depletion of natural resources; includes wastewater and chemical management and adidas restricted substances.

 

Upstream
(Tier 1 and Tier 2 suppliers)

 

SVP Product Development & Sourcing

 

ZDHC Wastewater Guidelines and ZDHC Chemical Management System Technical Guide, ZDHC MRSL, ISO 14001

 

ZDHC and adidas suppliers

 

Accessible on corporate website

Policy for the Control and Monitoring of Hazardous Substances (AO1)

(S)

 

Prohibits the use of chemicals considered harmful or toxic and includes the restrictions of using animal-derived materials.

 

Upstream
(Tier 1 and Tier 2 suppliers)

 

SVP Product Development & Sourcing, General Counsel

 

WFSGI, IUCN, ILO, AFIRM

 

External stakeholders (NGOs), legislation, and consumers expectations

 

Accessible on corporate website

1

Material matters addressed by policies and guidelines are abbreviated as follows:

P – Pollution of Water

S – Substances of Concern

 

2

Explanation of acronyms for third-party standards and initiatives:

ZDHC – Zero Discharge of Hazardous Chemicals Group

WFSGI – World Federation of the Sporting Goods Industry

IUCN – International Union for Conservation of Nature

ILO – International Labour Organization

AFIRM – Apparel and Footwear International RSL Management

adidas Environmental Guidelines

adidas commits to reducing the environmental impacts of our upstream manufacturing activities. Our policies and guidelines lay out business practices that apply to our suppliers, with whom we closely partner and to whom we provide training for continuous improvement. We set clear expectations for our suppliers regarding the management of pollution-related impacts across water, air, and soil. First, our suppliers as well as their partners should adhere to the respective local regulations and legal requirements, at a minimum. adidas always aims to adopt the industry standard if it is stricter than local regulations. Second, our suppliers must adhere to the adidas Environmental Guidelines, which have been developed to minimize and mitigate environmental impacts. The adidas Environmental Guidelines draw on good industry practices and provide guidance on preventing pollution. They also establish environmental and chemical management systems, including the handling of substances of (high) concern. Our approach prioritizes the proactive prevention of pollution incidents and lays out guardrails to minimize the impact of emergencies if they occur.

To ensure compliance with our guidelines and policies, our suppliers are required to conduct audits and assessments (managed by third-party verifiers) on a yearly basis. Any facilities that fail to meet our expectations must immediately follow the mitigation process defined in the adidas Workplace Standards and the Remediation Guide and take action to address any adverse impact. In addition, we encourage our suppliers to develop pollution prevention strategies. Our regional teams track and monitor our suppliers’ environmental performance through monthly reporting into the adidas data-collection platform. See ESRS E2-3 – Targets related to pollution

Control and monitoring of hazardous substances in our supply chain and products

adidas is highly committed to responsible chemical management across its global supply chain, taking an end-to-end approach to eliminate any restricted substances used in production. As a founding member of the Zero Discharge of Hazardous Chemicals (ZDHC) Foundation, we have been actively supporting the development of industry standards on chemical management and wider policy requirements since 2011. Our engagement includes promoting standardized measurement across the apparel and footwear industry by developing and implementing a commonly accepted testing methodology and related acceptable thresholds, as well as setting strict industry requirements that go beyond legal mandates. Since 2015, adidas has adopted the ZDHC MRSL (Manufacturing Restricted Substances List) industry standard, which outlines the chemical substances prohibited from any intentional use in the processing of textiles, leather, rubber, foam, adhesives, and trims. adidas additionally uses its own comprehensive restricted substance policy in products – the adidas Policy for the Control and Monitoring of Hazardous Substances1 to avoid and control the use of any restricted substances, such as APEO, PFAS etc., in its products and to ensure consumer safety, going beyond the legal requirements.

This dual approach also reinforces adidas’ commitment to PFAS-free production, in response to growing awareness and regulation around the environmental and health impacts of perfluorinated compounds (PFCs). We continue to enhance product performance while collaborating with industry partners to identify and implement safer alternatives.

Other guidelines

To monitor wastewater effluent (chemical output management), we apply the ZDHC Wastewater Guidelines Version 2.2 which establishes a unified approach to wastewater parameters and limits. These guidelines ensure a high standard of wastewater quality treatment, minimizing environmental harm when wastewater is discharged from suppliers’ facilities. We collaborate with the ZDHC Foundation to drive industry engagement to improve the wastewater quality standards beyond legal requirements.

End-to-end chemical management requires not only controlling inputs and outputs, but also oversight during production processes, where pollution incidents can occur through chemical leaks or emissions. To mitigate these risks, adidas expects suppliers to implement comprehensive environmental, health and safety (EHS) management systems as well as continual risk management and remediation measures. These expectations are laid out in our adidas Environmental Guidelines, the ZDHC Chemical Management System Technical Guide and our Health and Safety Guidelines. SEE ESRS S2-1 – Policies related to value chain workers

By stipulating process control through guidelines, we aim to prevent contamination incidents and uphold the chemical safety standards throughout our supply chain.

Microplastics2 – Microfiber Position Paper

adidas recognizes that the release of microplastics – also referred to as microfiber shedding or fiber fragmentation – during production, consumer use, and end-of-life is a multidimensional environmental challenge. Scientific research3 shows that both synthetic and natural fibers shed, and that biodegradability does not eliminate environmental risk. A holistic and standardized approach is essential to accurately quantify the release of microfibers and assess its environmental impact. However, the industry currently lacks a comprehensive, reliable, and scalable methodology for the different stages of the value chain, hindering effective action. Over the past few years, adidas has actively partnered with different industry experts, including The Microfibre Consortium (TMC), the Zero Discharge of Hazardous Chemicals Group (ZDHC), and Fashion for Good (FFG), to collectively drive progress in microfiber research and testing development. In addition, the ZDHC Group and TMC have recently partnered to explore practical indicators of microfiber release from production, based on wastewater metrics.

In 2025, we published the adidas Microfiber Position Paper internally to share our approach to this topic and to reinforce our commitment to transparency and collective action. adidas is committed to implementing evidence-based interventions, standardized pollution measurement methodologies, and fostering industry collaboration across the sector. As research into microfiber shedding continues to evolve, adidas aims to define a policy, actions, and targets to avoid or minimize microfiber release during production and provide consumers with clear guidelines for product use and disposal.

E2-2 – Actions and resources related to pollution

As outlined in our adidas Environmental Guidelines, our actions aim to prevent and minimize pollution, avoid the depletion of natural resources, and further minimize the impacts of our suppliers in the upstream value chain.

The coordination and monitoring of actions is performed by our Sourcing Sustainability team, which operates within our key sourcing countries. Unless explicitly described otherwise, all checks, tests, and verifications of the measures described were carried out by an independent third party for both pollution prevention and minimization of substances of concern. The majority of actions are reported and monitored on a monthly basis, with the exception of wastewater testing and annual verification checks. All of the measures described are designed to be ongoing in order to achieve adidas' targets.

Pollution prevention

In the reporting year, adidas carried out the following actions based on our standard practices:

  • We conducted an annual environmental compliance check with 80% of Tier 1 and Tier 2 facilities, based on sourcing value.4 No critical findings regarding air, water, or soil pollution were identified in the 2025 annual assessments, consistent with the results from 2024.

  • To increase environmental transparency and accountability in our supply chain, since 2015 we have encouraged our suppliers’ facilities located in China to report their water pollution data annually to the IPE Pollutant Release and Transfer Register (PRTR) platform. In 2025, 85% of our suppliers’ facilities disclosed their performance metrics on the PRTR platform. We expect that this disclosure will drive supplier differentiation and showcase each supplier’s individual environmental commitment. Based on our suppliers’ disclosure in the PRTR, adidas was ranked number one in 2025 in the IPE CITI rating.

  • Since 2017, in line with the ZDHC Wastewater Guidelines and the ‘right to know’ principle, we expect our Tier 2 suppliers (80% of Tier 2 suppliers performing wet processes, based on sourcing value) to test their wastewater twice a year and to disclose the results on the Institute of Public & Environmental Affairs (IPE) DETOX platform or the ZDHC Gateway platform. In the event of a noncompliance case, the supplier is required to address the issue and perform a follow-up audit to confirm the new wastewater quality results.

  • To strengthen wastewater management across our supply chain, we have partnered with service providers, e.g., ZDHC-approved laboratories and third-party consultants, to guide suppliers in advancing their wastewater treatment capabilities. Through on-site evaluations and consultations, suppliers receive tailored guidance to enhance their treatment capabilities and operational practices. This support is designed to improve the quality of their wastewater, enabling it to be recycled or safely discharged, surpassing legal requirements. The findings are also shared at our regional supplier summit to foster knowledge exchange among industry peers. The initiative covers 80% of Tier 1 and Tier 2 suppliers with wet processing facilities, based on sourcing value.

  • We have implemented an effluent treatment plant evaluation initiative to enhance the operation of on-site effluent plants. This initiative contributed to adidas’ goal of having 90% of its suppliers achieve the ZDHC Wastewater Foundational Level for their wastewater quality by 2025. Furthermore, it aims at facilitating suppliers’ continuous improvement in wastewater quality monitoring and control, ensuring environmental standards are met. SEE ESRS E2-3 – Targets related to pollution

  • Furthermore, adidas has been a member of the Leather Working Group (LWG) since 2006. The LWG certification emphasizes responsible water and chemical management in tanneries, particularly through wastewater treatment practices, aiming to reduce water pollution derived from tanning processes.

Our action to lay the foundation for our future focus:

To drive continuous improvement in minimizing the environmental impact, adidas has reviewed its current approach to monitoring the water pollutants in its supply chain. Building on our ongoing adoption of the ZDHC Wastewater Guidelines and in alignment with SBTN’s science-based targets for nature framework, we are introducing targeted controls for the two common pollutants nitrogen and phosphorus. We have defined a clear target for our facilities to reach the ZDHC Aspirational Level for both pollutants, reaffirming our commitment to reducing discharges into bodies of water.

For information on our approach to addressing actual or potential negative impact on affected communities with regard to water and sanitation, please refer to: see ESRS S3-3 – Processes to remediate negative impacts and CHANNELS FOR AFFECTED COMMUNITIES TO RAISE CONCERNS

Minimization of the use of substances of concern

In the reporting year, adidas carried out the following actions based on our standard practices:

  • We continuously take a precautionary approach and monitor the chemical formulations used in our production to avoid any restricted substances from being intentionally used. We adhere to the latest version of the ZDHC MRSL for our restricted substances list. Each year, our suppliers (80% of Tier 1 and Tier 2 suppliers with chemical usage facilities, based on sourcing value) undergo an on-site assessment focusing in particular on their chemical usage, compliance status, and improvement progress.

  • Our Tier 1 and Tier 2 suppliers continued to report on their chemical inventory and consumption on a monthly basis through a third-party online chemical inventory platform (BV Ecube). We monitor our chemical profiles monthly to avoid any intentional use of restricted substances and to ensure overall compliance, environmental protection, and worker safety. Additionally, annual ZDHC MRSL targets are established at the facility level to promote the adoption of safer chemicals. Their usage performance is also reviewed monthly.

  • We actively engage and collaborate with several industry organizations. This includes our engagement with the ZDHC Group, which has been externally recognized, and for which we received the Champion Level in the ZDHC ‘Brands to Zero’ program in 2025.5 This is the third consecutive year that adidas achieved the highest level in this program, demonstrating our efforts to drive chemical management in our supplier base and our achievement in avoiding any restricted substances used in our manufacturing process. Besides our engagement with the ZDHC Group, we actively collaborate with key industry organizations including the Apparel and Footwear International Restricted Substances Management Working Group (AFIRM), the International Chemical Secretariat (ChemSec) Business Group, the Better Cotton Initiative (BCI), and the LWG. Our collective efforts with organizations that shape the environmental requirements for our raw materials are important to advance chemical management in the industry and to minimize the use of substances of concern in production processes. For more information: SEE ESRS E4-3 – actions and resources related to BIODIVERSITY AND ECOSYSTEMS SEE ESRS E5-2 – actions and resources related to RESOURCE USE AND CIRCULAR ECONOMY

Our action to lay the foundation for our future focus:

In response to evolving requirements, adidas took a decisive step in 2025 to define a clear target for managing substances of concern in our supply chain. Building on our continued adoption of the ZDHC MRSL, this target will assist in guiding our facilities to source chemicals that meet the highest level of the MRSL. As part of this commitment, we have established a target to limit the use of substances of concern to no more than 5%. We expect this action to reinforce our efforts to reduce environmental and health impacts associated with chemical use.

Microfiber approach

In previous years, adidas conducted extensive internal research, using advanced analytical techniques, such as Fourier Transform Infrared (FTIR) spectroscopy, to distinguish textile-derived particles from background contamination. These efforts have helped to build a more accurate understanding of fiber fragmentation. The findings also provided foundational insights to support the development of methodologies to measure shedding during the consumer use phase.

In the reporting year, adidas carried out the following actions to establish a standardized industry approach to addressing microfiber pollution:

  • To advance industry knowledge and solutions, adidas collaborated with TMC, FFG, and academic institutions as part of the ‘Behind the Break’ initiative in 2025, exploring fiber fragmentation. Through this collaboration, adidas contributed research findings and participated in evaluating shedding test methods focusing on identifying potential root causes associated with the manufacturing process of various fiber types.

  • adidas partnered with TMC and the ZDHC program to launch a twelve-month wastewater study project, which will be finalized in 2026. adidas plays a key role in the project to contribute a supply chain perspective and aims to translate conceptual ideas into actionable items. This includes adopting Dynamic Image Analysis (DIA) to monitor fiber output in effluent streams, with the goal of developing reliable and standardized microfiber measurement protocols. Since there is currently no universal standard for testing microfiber in industrial wastewater, the ZDHC uses total suspended solids (TSS) as a practical indicator of microfiber release. Lower TSS levels in ZDHC wastewater test results reflect the reduction of microfiber discharge, making TSS a potentially critical metric for evaluating progress.

1 Restricted substances list can be found on our website. adidas-group.com/sustainability/policies

2 oceanconservancy.org

3 microfibreconsortium.com

4 Unless described otherwise, this scope always applies in E2-2 and E2-3 when referring to ‘Tier 1 and Tier 2 suppliers’.

5 Our achievement in implementing the MRSL conformance has been recognized and featured on ZDHC’s official communication channel. Linkedin.com

Per- and polyfluoroalkyl substances (PFAS)
Meanwhile commonly understood as an established term, aligned with the OECD definition, for the multi-thousand substance group formerly communicated as ‘PFCs.’
Wet processes
Wet processes are defined as water-intense processes, such as dyeing and finishing of materials.