Annual Report 2025

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Metrics and Targets

E4-4 – Targets related to biodiversity and ecosystems

The targets described below support the implementation of our Nature Strategy, are embedded in our policies, and reflect adidas’ commitment to address all material impacts, risks and opportunities (IROs).

Deforestation- and conversion-free (DCF) supply chains for high-risk commodities by 2030

adidas aims to have deforestation- and conversion-free (DCF) supply chains for all high-risk commodities used in our products – specifically bovine leather, natural rubber, and timber – by 2030. This global target, which excludes recycled leather and leather trims, is formalized in our Biodiversity and Ecosystems Policy and related documentation. The target and its associated metrics are based on leading external frameworks, including the Accountability Framework, and are informed by the EU Deforestation Regulation (EUDR), the EU Biodiversity Strategy for 2030, as well as research from the World Resources Institute’s Global Forest Review and WWF’s Deforestation Fronts.

By focusing on eliminating deforestation and conversion from our supply chain, we support the objectives of the Paris Agreement and align with the Kunming-Montreal Global Biodiversity Framework (GBF), contributing to the protection of species and their habitats. We continuously monitor our performance by tracking sourcing volumes, country of origin, and enhancing due diligence for suppliers in high-risk areas. Currently, we obtain information about leather volumes by country of origin from our leather suppliers through self-declaration. This information is then passed through a country deforestation-risk assessment carried out by the Sustainability and ESG team. This DCF target addresses material impacts on biodiversity and ecosystems, including those related to climate change, land-use change, and ecosystem services. Additionally, it mitigates risks associated with rising raw material costs, regulatory non-compliance, and potential increases in operational costs.

100% third-party certified wool

This target supports biodiversity by promoting responsible land management practices in our upstream supply chain, primarily through adherence to recognized certification standards. It is aligned with the Kunming-Montreal GBF expectations and is reflected in Standards for animal-derived materials. By implementing this target, adidas aims to mitigate negative impacts from land-use change, address dependencies on ecosystem services, and manage risks related to the availability and cost of raw materials. As a global commitment, the target applies to all wool sourced by adidas, excluding recycled wool. Progress is assessed annually by calculating the percentage of third-party certified wool sourced, based on primary data, without reference to a base year. In 2025, adidas sourced 100% (2024: 100%) certified wool, fully achieving the target and maintaining consistent performance compared to the previous year.

100% third-party certified cotton

Since the end of 2018, 100% of the cotton we use has come from certified sources, including organic, recycled, and other third-party certified cotton, such as cotton from the Better Cotton Initiative (BCI) and the US Cotton Trust Protocol. This global target covers the entire volume of cotton used in our products and is tracked annually through robust supply chain management processes. This target follows the expectations of the Kunming-Montreal GBF. Our commitment to sustainable cotton sourcing directly supports our Nature Strategy, Biodiversity and Ecosystems Policy, as well as our decarbonization goals. It also aligns with our broader ambition to reduce environmental impacts related to resource inflows, by promoting responsible agricultural practices, reducing pesticide and water use, and supporting farmer livelihoods. See ESRS E1 – climate change see ESRS e5 – resource use and circular economy

This target is embedded in our Standard Operating Procedures (SOPs) and forms a key component of our materials roadmap, which guides our transition to sustainably sourced renewable materials. By prioritizing the use of virgin or recycled cotton that is certified and traceable, we aim to minimize land-use change, protect ecosystem services, and contribute to circular economy principles. Progress toward this target is monitored annually, and performance data for 2025 can be found in ESRS E5 – Resource Use and Circular Economy. This approach not only advances our sustainability objectives but also helps mitigate risks related to raw material availability, regulatory compliance, and reputational impact. See ESRS E5-4 – Resource inflows

Basis for target setting: scientific evidence, frameworks, and stakeholder involvement

Our current targets were established based on best industry practices and recognized external frameworks, which are underpinned by conclusive scientific evidence regarding the impacts of material sourcing on biodiversity and ecosystems. In setting these targets, we have reviewed relevant scientific literature and guidance, such as those referenced in the Accountability Framework and the EU Biodiversity Strategy for 2030, to ensure alignment with the latest research and regulatory expectations. No ecological thresholds or allocation of impacts were applied, and no offsets were considered in the target-setting process. All three targets are global in scope, focusing on adidas’ upstream value chain and its most significant nature-derived materials, as previously outlined. Each target is allocated to the avoidance layer of the mitigation hierarchy, prioritizing the prevention of negative impacts at the source.

Stakeholder engagement was an integral part of our target-setting process. We consulted with key internal and external stakeholders, including suppliers, industry experts, and NGOs, to ensure that our targets are both ambitious and practical, and that they reflect the expectations of our broader stakeholder community. In addition to these core targets, further objectives related to biodiversity and ecosystems have been developed as part of our climate strategy, water management, and resource use approaches. These additional targets contribute to reducing negative impacts on biodiversity and ecosystems and are described in detail in the target sections of the following chapters: See ESRS E1-4 – Targets related to climate change mitigation and adaptation see ESRS E3-3 – Targets related to water and marine resources See ESRS E5-3 – Targets related to resource use and circular economy