Annual Report 2025

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Close-up of a wet adidas running shoe. (Photo)
ESRS E5

Resource Use and Circular Economy

The apparel and footwear industry uses significant amounts of resources. The consumption of finite resources, and the intensive manufacturing processes negatively affect the environment. Equally, resource outflow has negative impacts, including waste generation during production, and the disposal of products at end-of-life. The lack of industry-wide circular solutions for end-of-life leads to waste generation and highlights the need for systemic change. To mitigate such impacts and risks, adidas applies criteria for responsible sourcing, follows product creation guidelines which mandate the use of recycled and sustainably sourced renewable materials1, and provides waste guidelines for upstream activities and own operations. Our circularity strategy provides a long-term vision and defines priorities for our actions and engagement.

Targets

To address the multifaceted challenges of resource use and the circular economy, we have defined specific targets to effectively steer these interconnected topics.

100%

third-party certified recycled polyester2

(achieved 99% since 2023)

This target applies to all polyester sourced for adidas products.
100%

third-party certified cotton

(achieved since 2018)

This target applies to all cotton sourced for adidas products.

Waste diversion

The target focused on having the waste from Tier 1 and Tier 2 suppliers diverted from landfills.
2025 result 95%
2025 target 98%
10%

of polyester to come from recycled textile waste by 2030

The first products with textile-to-textile recycled polyester are planned for 2026.

Key actions and metrics

Our key actions

In 2025, adidas advanced its circularity agenda through three key actions that delivered strategic and industry-wide impact:

  • Published internal Circularity Position Paper to guide circular practices in our value chain
  • Upskilled suppliers on textile waste segregation through a multi-stakeholder program
  • Led multi stakeholder initiatives (e.g., T-REX) to steer systemic change in the industry

Materials used in adidas’ products and packaging in 20253

16% 3% 7% 14% 23% Biological materials Technical materials 95% sustainably sourced 40% sustainably sourced 9% 5% 2% 1% Paper and cardboard Cotton Leather Natural rubber Other biological materials Other technical materials Polyurethane (PU) EVA Synthetic rubber Polyester 21%
43%use of secondary (recycled) materials 4 Virgin materials Secondary materials

1 Textile Exchange refers to these as fibers produced from renewable resources, such as plants or agricultural waste, using practices that minimizeenvironmental impact throughout the lifecycle.

2 Where technically possible.

3 Our product portfolio includes apparel, footwear, as well as accessories. For further details, refer to the following section in E5-4: Explanatory notes toour reported material use data.

4 This number is partly derived from primary data and partly based on LCA data.

Accessories
A product category that comprises equipment that is used rather than worn by the consumer, such as bags, balls, sunglasses, or fitness equipment.