Impact, Risk and Opportunity Management

E4-2 – Policies related to biodiversity and ecosystems

Nature Strategy and Biodiversity and Ecosystems Policy

adidas’ Nature Strategy outlines our commitment to achieving deforestation- and conversion-free (DCF) supply chains by 2030 or earlier, integrating human rights considerations and aligning with our decarbonization goals. The strategy focuses on our upstream supply chain, particularly sourcing materials with deforestation risks – such as leather, natural rubber, and timber – while also targeting compliance and the reduction of indirect carbon emissions from land use.

In 2025, we launched the adidas Biodiversity and Ecosystems Policy¹ to embed this strategy across our operations and supply chain. The policy formalizes our DCF targets and actions to address our most significant impacts, risks, and opportunities (IROs) related to climate change, land-use change, ecosystem health, and ecosystem services. It serves as an umbrella for functional policies and standard operating procedures (SOPs) that guide biodiversity-related measures throughout the organization, applying to all adidas sites, including those in or near biodiversity-sensitive areas. Following its launch, we initiated the biodiversity policy implementation phase, engaging all relevant functions to co-create action plans aligned with policy objectives. By publicly stating our commitments, we reinforce our dedication to collaboration and innovation in the areas of our supply chain where pressures on nature are greatest. We believe that this policy, in conjunction with our broader strategy, will help us address key biodiversity dependencies and pressures in our supply chain.

Policy for the Control and Monitoring of Hazardous Substances

Our A-01 Policy for the Control and Monitoring of Hazardous Substances prohibits the use of harmful or toxic chemicals in production and restricts the use of animal-derived materials from endangered or threatened species, as defined by the IUCN Red List. This policy further supports our efforts to protect ecosystems and species.

Standards on animal-derived materials²

adidas is committed to sourcing animal-derived materials in a humane, ethical, and sustainable manner, prioritizing animal welfare and species conservation. Our standards on animal-derived materials prohibit the use or processing of certain materials and set minimum requirements for material sourcing. By prioritizing certified materials, we promote sustainable land and agricultural practices, protect pasture landscapes, and mitigate negative impacts from land-use change. These standards are operationalized through SOPs detailing certification, traceability, and responsible sourcing requirements.

Responsibly Sourced Synthetics SOP

To reduce dependence on fossil fuel-based resources, adidas is moving away from virgin fossil-based materials in favor of recycled or renewable alternatives, such as bio-based feedstocks. This transition helps conserve finite resources, lower our carbon footprint, and reduce pressure on nature. More details on sustainably sourced renewable materials³ are provided in ESRS E5 – Resource use and circular economy. In plastics and synthetic production, bio-based feedstocks can substitute certain chemical building blocks traditionally sourced from fossil fuels. Before integrating bio-based feedstocks into our material portfolio, we conduct a comprehensive impact assessment using multi-factor analysis. Feedstocks linked to deforestation are either excluded or require certification to ensure responsible forestry and land management. Additionally, all feedstocks are evaluated based on sourcing origin, environmental impact drivers, and potential social and human rights risks. These requirements are embedded in our Biodiversity and Ecosystems Policy and operationalized through the Responsibly Sourced Synthetics SOP. see esrs E5-1 – Policies related to resource use and circular economy

Additional considerations

• Traceability and ecosystem impacts: Traceability is central to understanding and addressing our biodiversity IROs. By increasing traceability of materials, adidas can better assess and mitigate local impacts on ecosystems and ecosystem services and engage collectively in solutions that decrease pressure on nature. Traceability expectations are outlined in our Biodiversity and Ecosystems Policy and related SOPs.

• Human rights considerations: adidas upholds internationally recognized human rights throughout its operations and value chain. Our Biodiversity and Ecosystems Policy explicitly incorporates human rights and livelihoods, with cross-references to our Human Rights Policy, recognizing the interlink between environmental and social risks and ensuring that our approach to biodiversity also addresses human rights considerations across the value chain. See ESRS S2 – WORKERS IN THE VALUE CHAIN See ESRS S3 – AFFECTED COMMUNITIES

• Other policies: Our approach to biodiversity is supported by policies on climate change, pollution, water and marine resources and resource use and circular economy. For example, our climate strategy promotes alternative materials and processes that address land-use change, while our adidas Environmental Guidelines minimize pollution and safeguard habitats. These integrated policies support a holistic approach to reducing pressures on biodiversity and align with international frameworks such as the Kunming-Montreal Global Biodiversity Framework and Science Based Targets Network (SBTN). The policies can be found in the respective topical standards.See ESRS E1-2 – Policies related to climate change mitigation and adaptation SEE ESRS E2-1 – Policies related to pollution See ESRS E3-1 – Policies related to water and marine resources See esrs E5-1 – Policies related to resource use and circular economy

E4-3 – Actions and resources related to biodiversity and ecosystems

Due to the complex supply chain structures in our industry, a key focus of our actions is to understand the origin and the respective biodiversity impact of the raw materials we use. Therefore, in 2025, we continued to focus on enhancing transparency and traceability of materials by mapping upstream value chains of key materials and by actively contributing to the development of industry-wide solutions for material traceability through our participation in several working groups. The highest priority was given to materials associated with a man-made deforestation risk (which for us are leather, natural rubber, and timber-derived materials), followed by cotton as the largest nature-derived material used in our portfolio. We also established the Biodiversity and Ecosystems Policy, along with standard operating procedures (SOPs), to facilitate the implementation of our Nature Strategy.

adidas recognizes the importance of Indigenous Peoples’ and local communities’ (IPLC) rights and knowledge in effective biodiversity management. While we did not engage directly with IPLCs in 2025, their perspectives are incorporated indirectly through our adherence to internationally recognized standards and certifications – such as the FSC, Better Cotton Initiative (BCI), and Organic Cotton Accelerator –, which include criteria for respecting indigenous rights, land tenure, and the integration of local knowledge into sustainable land management and sourcing practices. In 2025, adidas did not focus on direct nature-based solutions. Biodiversity offsets are not currently part of our short- or mid-term action plans, as our strategy prioritizes prevention, responsible sourcing, and avoiding negative impacts.

Overall, the actions stated below contribute to achieving our targets and tackling all of our material IROs in the field of biodiversity and ecosystem by individually addressing one or more of the identified material IROs. For the coordination and monitoring of actions, we rely on internal resources (mainly from the Sustainability and ESG Team). Unless explicitly stated otherwise, all actions are ongoing.

In the reporting year, adidas carried out the following actions related to biodiversity:

• Biodiversity and Ecosystems Policy development and implementation: In June 2025, adidas launched its Biodiversity and Ecosystems Policy, formalizing our commitments and expectations to address the company’s impacts on nature, supporting our target to eliminate deforestation and ecosystem conversion from our supply chain. The policy includes the feedback from the stakeholder dialogue held in 2024 with selected external stakeholders. Examples of the feedback received and included was: integration of specific wording on reduction of virgin resources and reference to restoration plans linked to adidas business operations. The Biodiversity and Ecosystems Policy implementation phase began in the second half of 2025, involving all relevant functions across the business. As part of this, Standard Operating Procedures (SOPs) for nature-derived materials were created, and functions started to embed the policy in their business, co-creating strategies to achieve adidas biodiversity targets. adidas-group.com/sustainability/policies adidas-group.com/sustainability/Planet

• Leather: In 2025, our actions on leather were guided by three main objectives under the Biodiversity and Ecosystems Policy: increasing supply chain transparency, strengthening industry collaboration, and raising supplier awareness. To enhance transparency, we conducted a new comprehensive supply chain mapping for all leather suppliers we worked with in 2025, aiming to trace raw material origins up to the slaughterhouse and, where possible, to the farm level. In this mapping exercise, with support of our suppliers, we were able to increase our understanding of our upstream supply chain. This mapping supports our goal of achieving deforestation- and conversion-free (DCF) bovine leather supply chains by 2030 or earlier. We also engaged with indirect suppliers and cross-industry partners to explore certification and due diligence solutions for deforestation-free sourcing. adidas actively contributed to industry working groups, including Textile Exchange’s Deforestation-free Call to Action for Leather initiative and the Leather Working Group’s Chain of Custody task team, to advance the development of standards for traceability and deforestation-free protocols. Additionally, we participated in a pilot for the Global Traceability Framework for Beef and Leather to help develop robust data standards. To build awareness, we communicated our DCF targets to suppliers through a formal communication, dedicated meetings and workshops. As part of the policy implementation, we finalized our Responsible Leather SOP, translating DCF commitments into actionable sourcing requirements for our suppliers. Following the decision taken in 2024, adidas stopped purchasing kangaroo leather and ended manufacturing products with this material in 2025.

• Endangered or threatened species: In 2025, adidas continued its commitment not to source or process any raw materials from endangered or threatened species. This was emphasized through our policies and creation guidelines for our products as well as through active engagement with our development teams on this topic. This supports biodiversity by protecting vulnerable species, based on the IUCN Red List, and helps prevent negative impacts in the upstream part of our value chain. This action applies to all materials sourced by adidas and aligns with our Biodiversity and Ecosystems Policy, our Policy for the Control and Monitoring of Hazardous Substances (A-01) and the Global Biodiversity Framework (GBF), addressing ecosystem dependencies and risks.

• Natural rubber: In 2025, we conducted a more comprehensive supply chain mapping for our natural rubber suppliers we worked with in 2025, aiming to enhance transparency to understand possible impacts and risks related to deforestation that may be present in this supply chain. This more comprehensive exercise was led by the Traceability team, and, in contrast to the previous exercise, responses were obtained from Tier 4+ in this supply chain in 2025. This mapping directly supports the implementation of our Biodiversity and Ecosystems Policy and Nature Strategy. Another implementation step conducted in 2025 was the translation of adidas’ expectations into actionable steps to our suppliers by developing the Natural Rubber SOP. Communications about our deforestation- and conversion-free (DCF) targets to suppliers were conducted through trainings and specific meetings. Additionally, adidas actively participated in the Natural Rubber Round Table hosted by FSC (Forest Stewardship Council), fostering dialogue among stakeholders including tappers and their representatives to address challenges and promote a more equitable, DCF supply chain.

• Timber-derived materials – specifically man-made cellulosic fibers (MMCFs) and paper packaging: To steer our journey toward deforestation-free MMCFs and paper packaging (covering our total volume globally), adidas joined CanopyStyle and Pack4Good in 2023, two initiatives from Canopy Planet setting the framework for good sourcing practices to protect ancient and endangered forests. These requirements were included in our Biodiversity and Ecosystems Policy. In collaboration with Canopy Planet, adidas has embarked on a supply chain mapping exercise for MMCFs as part of our deforestation-free supply chain targets, linked to our biodiversity strategy. We identified the Tier 4 suppliers (fiber producers) our suppliers source from, and we will continue to monitor risks and progress toward our DCF 2030 targets. Through the MMCF SOP launched in 2025, we specified the criteria for sourcing MMCF that includes only suppliers classified as ‘Dark Green’ in the Canopy Hot Button Report⁴ and using certified raw materials. This will assist in achieving our targets related to biodiversity but also encourage the use of more environmentally friendly chemicals in manufacturing processes – aligned with ZDHC parameters and our expectations shared in ESRS E2 – Pollution. For paper packaging, many internal teams were once again consulted to better understand the volumes sourced, certifications used, and country of origin of the material. In 2025, a cross-functional taskforce was created to address challenges related to our deforestation and conversion commitments and future regulatory requirements. A strategy to assess baseline and develop targeted action plans was shared. While our distribution centers continue to optimize packaging sizes to minimize the consumption of packaging material and improve transportation efficiency, adidas already included criteria related to the Biodiversity and Ecosystems Policy into the new Request for Quotation (RFQ) for sourcing of packaging.

• Cotton: Since 2018, adidas has solely sourced third-party certified cotton (organic, recycled, and other cotton standards). Most of the cotton in our portfolio is sourced through BCI, a program which uses a mass balance approach and therefore is not traceable to the country of origin. Our measures in 2025 revolved around gaining more transparency on the country of origin through the supply chain mapping exercise targeting the relevant upstream supply chain globally and diversifying our cotton portfolio in order to ultimately have a verified country of origin for all cotton we source. Additionally, after signing up for Traceable Better Cotton, aiming to start sourcing product-segregated cotton from BCI with traceability up to the country of origin, we communicated our plans to our suppliers to solidify our commitment. We also partner with the US Cotton Trust Protocol, which provides a chain of custody to the country of origin for cotton. Finally, we developed our Responsibly Sourced Cotton SOP, which formalizes adidas’ guidance on cotton sourcing and traceability. These actions are in line with our target to source 100% certified cotton and the objectives of the newly developed Responsibly Sourced Cotton SOP.

• Innovation: We continuously explore innovative solutions that can replace current natural materials and may reduce pressures on land and ecosystems, in alignment with the direction provided by our Biodiversity and Ecosystems Policy. Scouting and piloting is done by our own innovation team as well as through Fashion for Good (FFG), a multi-stakeholder platform for sustainable innovation in the fashion industry. Our focus in 2025 was the exploration of new man-made cellulosic fibers that can replace conventional viscose. See ESRS E5 – RESOURCE USE AND CIRCULAR ECONOMY

• Collaboration and advocacy for nature: During 2025, we continued to contribute to several working groups from Textile Exchange, BCI, and Leather Working Group, with the goal of generating knowledge and ultimately creating industry standards to reduce impacts of raw materials and processes on biodiversity, for example through improved agricultural practices. As a member of Textile Exchange’s Regenerative Agriculture Outcome Framework working group, we contributed to the creation of a cross-industry basket of indicators for regenerative agriculture and their piloting, which was updated in 2025.⁵ We are also an active member of the Fashion Pact Unlock Project, which tests the carbon accounting and other environmental benefits of cotton, and Textile Exchange’s Leather, Cotton, Biosynthetics, and Manmade Cellulosic Round Tables. These groups focus on advancing important topics in the sector, such as improving traceability and developing environmental impact analyses and guidance for the industry. In 2025, adidas joined leading voices at Climate Week NYC, participating in the Science Based Targets Network (SBTN) event focused on corporate sustainability. Business leaders came together to discuss why investing in nature is critical for achieving science-based targets and ensuring long-term business resilience. Through the participation of adidas’ SVP Sustainability and ESG in the panel discussion, adidas publicly reinforced its commitment to stepping up for nature, highlighting how protecting ecosystems is integral to its sustainability vision and future-proofing of the business. This activity followed the expectations shared in our Biodiversity and Ecosystems Policy and its implementation, where adidas aims to support industry transformation through collaboration.

• Laying the Foundation for Science-Based Nature Targets: In 2025, adidas completed Steps 1 and 2 of the Science-Based Targets for Nature process, which were submitted for external validation according to the official framework processes. Step 1 involved conducting a materiality assessment to identify key areas where our own operations and value chain interact with nature. In Step 2, we performed a scoping exercise to prioritize locations and environmental pressures for target-setting, focusing on freshwater and land systems. See ESRS E3-2 – Actions and resources related to water and marine resources

Further measures to reduce negative impacts on biodiversity and ecosystems related to climate change, pollution, water or resource use are described in detail in the relevant chapters, respectively: SEE ESRS E1-3 – Actions and resources in relation to climate change policies SEE ESRS E2-2 – Actions and resources related to pollution SEE ESRS E3-2 – Actions and resources related to water and marine resources SEE ESRS E5-2 – Actions and resources related to resource use and circular economy

1 adidas-group.com/sustainability

2 adidas-group.com/sustainability

3 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.

4 Canopyplanet.org

5 textileexchange.org