Impact, Risk and Opportunity Management

S2-1 – Policies related to value chain workers

Our Human Rights Policy outlines our commitment to respecting and promoting human rights across our upstream value chain and own operations. Our Human Rights Policy identifies salient human rights risks, including: labor rights, wages, discrimination and harassment, freedom of association and collective bargaining, child labor, forced labor and human trafficking as well as occupational health and safety.

Our commitment is implemented through our Human Rights and Environmental Due Diligence (HREDD) system and supported by key policies, including the adidas Workplace Standards – our supply chain code of conduct outlining our expectations on human rights and employment standards, including those regarding forced labor, child labor, discrimination, wages, benefits and compensation, working hours, freedom of association and collective bargaining, worker health and safety, and environmental practices.

The policies in the table below are grounded in international standards such as the International Bill of Human Rights, the International Labour Organization (ILO) Declaration on Fundamental Principles and Rights at Work and related conventions, the UN Guiding Principles on Business and Human Rights (UNGPs), and the OECD Guidelines for Multinational Enterprises. While adidas maintains robust human rights due diligence processes and risk mitigation measures, cases of non-respect of international labor standards in the upstream value chain can occur and have occurred during the reporting period. These include: unauthorized subcontracting, fraudulent practices (e.g., double bookkeeping, falsified wage documents), repeated wage and benefit violations, non-compliance with minimum wage and overtime laws, health and safety breaches including a fatality, and instances of gender-based violence. All cases triggered formal remediation and enforcement mechanisms, including 21 warning letters (17 ‘Warning Letters 1’, four ‘Warning Letters 2’) issued to suppliers.

These enforcement actions reflect our commitment to uphold the UNGPs, ILO Declaration, and OECD Guidelines across the supply chain. They also reflect our obligations under the ‘Lieferkettensorgfaltspflichtengesetz (LkSG)’ – the German Supply Chain Due Diligence Act. All remediation efforts are integrated into adidas’ human rights due diligence system to ensure accountability and continuous improvement.

We have established our Human Rights and Environmental Due Diligence (HREDD) framework to guide internal risk assessment and risk management processes in accordance with the international standards mentioned above. This framework is in line with our Human Rights Policy commitments and other regulatory obligations, including the LkSG. For an overview of our Human Rights and Environmental Due Diligence (HREDD) processes, please refer to: see ESRS G1-2 – Management of relationships with suppliers

S2-2 – Processes for engaging with supply chain workers about impacts

adidas has several processes for engaging with workers in our upstream supply chain – directly and indirectly – about actual and potential material impacts which may affect their health and safety, well-being, or may otherwise adversely impact their fundamental human and labor rights. Such processes ensure that workers can voice concerns and submit complaints or grievances related to material risks and impacts – as well as the full range of human rights and labor rights risks that workers in the upstream value chain may face.

Worker perspectives are integrated into adidas’ decision-making through continuous engagement with worker representatives, including civil society and trade unions, real-time feedback from WOVO (Workers’ Voice) grievance cases and Worker Pulse surveys, and systematic review by the Social & Environmental Affairs (SEA) team to inform sourcing practices, corrective actions, and strategic priorities.

Regular engagement occurs with supply chain workers through processes such as the WOVO operational grievance mechanism and the Worker Pulse survey – conducted twice per year – as well as through regular engagement with their credible proxies or legitimate representatives via trade unions that are active in the manufacturing facilities. See ESRS S2-3 – Processes to remediate negative impacts and channels for value chain workers to raise concerns

We also maintain an active and open dialogue with stakeholders – local and international non-governmental organizations (NGOs), labor rights and human rights advocacy groups, and trade unions, as well as investors, analysts, national and international government agencies, and academics – to better understand and address the most significant impacts on supply chain workers and improve our mitigation efforts. We actively seek stakeholder feedback through our annual stakeholder dialogue. See ESRS S2-4 – Taking action on material impacts, risks and opportunities related to workers

S2-3 – Processes to remediate negative impacts and channels for value chain workers to raise concerns

We are committed to providing for or cooperating in the remediation of adverse impacts, including those which we have caused or contributed to through our business relationships. Whenever negative impacts are identified either through our audit process or through one of the various grievance channels available to workers, we engage directly with our business partners to support them in remediating the issue and addressing root causes within a specified period of time.

Monitoring suppliers’ social compliance — identifying negative impacts

adidas outsources most of its production and relies heavily on its upstream supply chain workforce. In 2025, we partnered with 444 Tier 1 manufacturing facilities (2024: 388) and their subcontractors across nearly 40 countries. Our supply chain spans multiple tiers and includes a diverse mix of directly contracted suppliers and indirect partners managed through intermediaries, licensees, and agents.

We monitor social compliance of suppliers with a multi-level monitoring and enforcement system guided by our policies. This approach helps us identify and address risks of harmful working conditions and human rights violations in our upstream value chain, shaping responsible business practices.

Beyond our suppliers, we also require our licensees – independent partners producing adidas products under license – to adopt our internal monitoring approach to ensure compliance across indirect supply chains. Audits are conducted by adidas-approved external monitors to verify the effectiveness of the compliance programs.

Managing supplier compliance — remediating negative impacts

When an audit identifies that a supplier is not compliant with one or more of the criteria in adidas’ Workplace Standards, a corrective action plan is developed in alignment with best practice guidance on remediation provided to suppliers. adidas provides or contributes to remedy for material negative impacts on value chain workers through these corrective action plans, and assesses effectiveness via verification in follow-up audits, via worker satisfaction surveys, and through key performance indicators such as case closure rates and recurrence reduction.

If the issues are not sufficiently addressed within the specified time, the supplier will either not be authorized for production if it is a newly proposed supplier or will trigger adidas’ enforcement process if it is an existing supplier. When suppliers fail to meet our Workplace Standards, we apply the sanctions and remedies from our Enforcement Guidelines. adidas-group.com/sustainability/Policies

While we aim to support supplier improvement, unresolved severe or repeated non-compliance may result in contract termination, following our Termination Guideline, which ensures that the actions are undertaken in a transparent and ethical manner. When making such a decision, we always seek to balance the adverse impacts arising from the unresolved non-compliance against the impact of termination on workers, especially where layoffs may occur. Our Guidelines on Redundancy and Layoffs address risks to secure employment in such cases. adidas-group.com/sustainability/policies (Termination guideline) adidas-group.com/sustainability/policies (Redundancy and Layoffs guidelines)

For complex issues that require additional remedial action – such as child labor – we have developed specific guidelines for strengthening Human Resources (HR) systems at factory level to prevent child labor, ensure protection for juvenile workers, and to respond to violations by providing appropriate remedy, if they occur. adidas-group.com/sustainability/policies

Channels for workers to raise concerns

adidas provides multiple grievance channels for workers in our supply chain and external third parties to report grievances. These channels include:

• Workers’ Voice (WOVO) – a digital operational grievance platform used across all core Tier 1 supplier facilities

• Worker Hotlines – direct communication managed by our Social & Environmental Affairs (SEA) department

• Complaint Procedure for Human Rights and Environmental Impacts – a confidential channel for anyone, including affected individuals, advocacy groups, and organizations to report human rights and environmental concerns linked to adidas' operations, products, or services.

Additionally, as part of our membership in the Fair Labor Association (FLA), any third party can report violations of workers' rights in adidas facilities via FLA’s Third Party Complaint procedure. fairlabor.org

We prohibit any form of retaliation against workers making complaints about their employment conditions or individuals or other third-party organizations raising issues related to human rights violations or environmental damage. This is clearly outlined in our Non-Retaliation clause in the Complaint Procedure for Human Rights and Environmental Impacts.

adidas suppliers are required to have grievance systems in place where workers can freely and – if they choose – anonymously submit any complaints or suggestions they may have. This includes the app-based WOVO platform. In 2025, workers submitted close to 47,200 human and labor rights complaints (2024: around 35,700), with 99% of these complaints resolved by year-end. Top issues included: internal communication (approximately 13,300), benefits (approximately 8,300) and general facilities (approximately 5,800). Worker satisfaction with case resolution rose from 39% in 2019 to nearly 79% in 2025, driven by faster response times – down from 49 hours in 2020 to under 11 hours in 2025.

Through close engagement and cooperation with suppliers, we have increased both awareness of and trust in the grievance mechanisms made available to workers, particularly the WOVO app. This is evident by the consistent, widespread usage of the app within our supply chain. We have progressively improved and expanded the use of this grievance mechanism, and in 2025, more than 402,500 workers employed in 92 manufacturing facilities across ten countries had access, covering 100% of our core Tier 1 manufacturing partners. adidas tracks the input received through the WOVO platform using KPIs and dashboard reviews, case satisfaction ratings, and on-site worker interviews. This enables real-time issue tracking, timely interventions, and insights into widespread, frequent, or systemic labor challenges. It also informs how factory management resolves cases and contributes to the supplier social impact (S-KPI) rating.

Workers in our supply chain also have access to worker hotlines managed by our SEA department. In 2025, we received a total of 65 individual complaints through the SEA worker hotlines from workers in 16 countries. The most common complaints were related to: employment practices (35%), compensation and benefits (29%), and discrimination and harassment (20%).

Complementing our grievance channels, we use the Worker Pulse survey to capture workers’ perception and awareness of their labor rights. In 2025, 96 facilities in 13 countries participated, with favorable responses rising from 78% in 2020 to nearly 91% in 2025.

Feedback from all of these channels informs our due diligence and helps improve our practices, processes, and remediation efforts.

S2-4 – Taking action on material impacts, risks and opportunities related to workers

Risk mapping and mitigation

We prevent and mitigate actual and potential negative impacts on value chain workers through a robust human rights due diligence process embedded in our Human Rights and Environmental Due Diligence (HREDD) system. This system identifies, prevents, and addresses human and labor rights risks across our operations and supply chain. In 2025, adidas formalized key steps to embed HREDD across our upstream value chain and own operations, with targeted expansion to high-risk non-trade procurement (NTP) and downstream logistics.

Our due diligence process prioritizes high-risk locations, processes, and activities where we can influence outcomes. Country-level risk assessments enable rapid, targeted responses and draw on public databases, direct engagement with stakeholders, including civil society organizations and trade unions, as well as direct worker engagement. At factory-level, risk assessment processes include regular audits, social impact performance (S-KPI) assessments, and factory risk-rating analysis, covering all material human and labor rights risks, as outlined in our Human Rights Policy and Workplace Standards.

Based on risk mapping, materiality assessments, and grievance data, we identified key areas for targeted action to mitigate risks and address negative impacts. All actions disclosed in this section correspond to the material topics identified in our double materiality assessment and apply to workers in our upstream value chain.

All actions taken during the reporting period were led by the Social & Environmental Affairs (SEA) department, a specialist function within Global Legal. SEA is responsible for implementing our HREDD system and ensuring compliance with adidas’ Workplace Standards across the supply chain. The team comprises 37 full-time experts located in major sourcing countries, Germany, and the United States. Each member is fully dedicated to due diligence and social and environmental compliance. This global structure provides local expertise and oversight, enabling adidas to identify, mitigate, and remediate material impacts effectively.

We systematically track and assess the effectiveness of all actions and initiatives taken during the reporting period through several mechanisms. This includes: our social impact KPIs program (S-KPI), worker feedback mechanisms including worker surveys and grievance data, and through stakeholder feedback and engagement – ensuring that intended outcomes for value chain workers are achieved and that we work toward continuous improvement.

Human rights and other work-related rights

Child labor and forced labor

• To address impacts related to child labor in our upstream cotton supply chain, we continued our partnership with the Fair Labor Association (FLA) on the Harvesting the Future (HTF) – Cotton in India initiative, targeting child and forced labor in Madhya Pradesh’s cotton sector. In 2025, the project completed surveys of 16 Child Labor Free Zones and 32 villages, trained field staff on child labor and health and safety, developed monitoring tools and wage standards, and strengthened multi-stakeholder engagement and local capacity.

• In 2025, we advanced industry collaboration with the American Apparel & Footwear Association (AAFA), the FLA, and leading brands to strengthen responsible recruitment and address forced labor risks for foreign migrant workers (FMWs) in Taiwan. We engaged independent experts to assess recruitment fees and develop remediation plans, reinforcing our ‘no fee’ commitment. To monitor progress, we launched worker surveys for direct feedback and transparent tracking. These actions reflect measurable steps toward addressing forced labor risks and ensuring accountability across the Tier 2 supply chain.

Working conditions

Health and Safety

To address material risks related to health and safety, including workplace accidents and unsafe conditions, and to strengthen opportunities for improved occupational health and safety, we implemented the following actions during the reporting period:

• Building on the initiative launched in 2023, we delivered targeted training to enhance machine and electrical safety for compliance and safety teams at Tier 1 factories in Vietnam and Indonesia, and expanded coverage to a selected Tier 1 supplier in Cambodia.

• In India, following the 2024 pilot, we continued third-party assessments on machine and electrical safety for selected local sourcing factories.

• Through the Pakistan Accord on Fire and Building Safety, which we joined in 2023, we supported workplace safety assessments at supplier facilities in Pakistan and related supplier follow-up actions, including supporting remedial actions.

• To further reinforce safety systems and mitigate fire safety risks, we implemented a dedicated program focusing on fire and electrical safety for selected Tier 2 material suppliers – specifically fabric mills, dye houses, leather tanneries, and component manufacturers. Selected Tier 1 suppliers in Vietnam and Indonesia also participated.

Fair compensation

To support our Fair Compensation ambitions, in 2025, we focused on key impact areas, including applying the lever of freedom of association and taking steps to advance our target on gender pay parity. These actions mitigate risks of wage inequality and enhance opportunities for adequate wages in our upstream supply chain. For the details of our actions in these respective areas, see the following sections on freedom of association, gender equality, and equal pay for equal work.

Freedom of association (FOA) and social dialogue

To mitigate risks related to restrictions on freedom of association and to strengthen opportunities for effective social dialogue, we implemented the following actions during the reporting period:

• In Cambodia, we continued our collaboration with the Cambodia Arbitration Council, which provided capacity-building support to factory management and trade union leaders on developing protocols for labor dispute resolution. This addresses the risk of labor conflicts and supports the opportunity for constructive industrial relations. To date, eight of our manufacturing partners have participated in this program and of these, three have reached agreements with their respective trade unions on the implementation of these protocols.

• In Myanmar, we partnered with the Multi-stakeholder Alliance for Decent Employment in the Myanmar Apparel Industry (MADE in Myanmar) program to support one of our manufacturing partners in conducting an open and fair election process for the Workplace Coordination Committee (WCC) to reduce the risk of worker representation gaps and promoting democratic workplace governance.

• In Indonesia, we delivered training sessions on the FOA Protocol for new manufacturing partners, mitigating compliance risks and enabling effective implementation of freedom of association standards within factory operations.

• In El Salvador, we began implementing the Americas Group’s FOA Guidance for Employers across five Tier 1 suppliers, supported by a local subject-matter expert. This initiative addresses risks of non-compliance with FOA and industrial relations standards while creating opportunities for stronger partnerships between factories, workers, and unions.

• In Jordan, we engaged with the FLA, International Labour Organization (ILO) and local stakeholders on the terms of the current Collective Bargaining Agreement (CBA), which provides a lesser set of rights to workers in the garment and textile sector compared to other industries and national standards. This engagement aims to mitigate the risk of unequal treatment of foreign migrant workers. In 2026, an independent study will be conducted on wage deductions affecting foreign migrant workers, creating an opportunity for systemic improvement.

Equal treatment and opportunities for all

Gender equality and equal pay for equal work

• Supplier Gender Equality Program: We continue to implement the gender equality program for suppliers to address risks of gender discrimination and unequal pay, and to create opportunities for inclusive workplaces. The program includes an annual self-assessment to help suppliers identify gender gaps in their operating practices and procedures as well as an annual gender equality worker survey to evaluate worker sentiment on gender equality, and targeted capacity building. In 2025, more than 51,000 (2024: 46,000) workers participated in the worker survey across 102 factories (2024: 105). Since the program’s launch in 2023, worker survey results have improved, from 85 (out of 100) in 2023 to nearly 87 in 2025. These improvements indicate that the program is delivering tangible benefits for workers by strengthening gender equality practices, enhancing workplace inclusivity, and fostering a more equitable working environment.

• Women Leadership Program: We continue to provide tailored training under our Women Leadership Program. In 2025, more than 1,600 (2024: 1,600) female supervisors from 80 (2024: 76) factories in Cambodia, China, India, Indonesia, Myanmar, and Vietnam participated in the training. We closely track the progress of workers graduating from this training initiative and, since 2016, approximately 500 female supervisors have been promoted to higher positions because of their participation in the program.

• Equal Pay for Equal Work: In 2025, we launched a dedicated Gender Pay Parity e-learning course, commissioned by adidas and another FLA participating company, in collaboration with the Anker Research Institute and improvingworklife. The course was designed to raise awareness, build supplier capacity, and promote equitable compensation practices. It was rolled out across 70% of our core Tier 1 suppliers in 2025, equipping them with tools to assess and address gender-based pay gaps and foster inclusive workplace policies. ANKERRESEARCHINSTITUTE.org IMPROVINGWORKLIFE.com

Training and skills development

To mitigate risks of non-compliance and to strengthen opportunities for capacity building and increased worker awareness of labor standards, we continue to provide regular training and capacity building to suppliers and workers employed at our suppliers’ facilities, through digital training and targeted in-person sessions on topics including: our Workplace Standards, labor rights, health and safety, and environment.

In 2025, we conducted 78 training sessions (2024: 104) for 2,419 individuals (manufacturing partners, licensees, workers and adidas employees). We expanded our use of the FLA’s e-learning materials to include adidas’ direct supply chain, which include training courses covering topics such as human rights, forced labor, responsible manufacturing, and worker engagement. We also provided access to the Better Buying Institute’s e-learning course on responsible purchasing practices to the appropriate cross-functional teams within adidas and to licensee partners.

Digital training for workers in the supply chain has been successfully rolled out via the WOVO app. The tool assesses workers’ awareness of their labor rights (e.g., fire safety, harassment and abuse), available remedies and use of grievance channels. Over 59,500 workers participated in 2025 (2024: 68,800) and averaged a score of approximately 91 out of 100 in the post-test questions, demonstrating high levels of worker awareness of their core rights and available remedies.

Cooperation with stakeholder groups

In addition to taking action to address material impacts, adidas actively engages with stakeholders to inform and strengthen our programs’ effectiveness and our overall approach. We work with leading organizations to advance capacity-building efforts on supply chain-related topics. Key engagements in 2025 included:

• Americas Group (AG): We continued to actively contribute and play a leading role to this long-standing multi-stakeholder initiative. Key activities included: (1) Reporting to local labor stakeholders on compliance with childcare and severance laws and regulations in El Salvador – systemic and widespread issues we've addressed in partnership with a local women’s organization and trade union federation since 2016; (2) Hosting in-country stakeholder engagements with labor partners in El Salvador to strengthen collaboration and transparency; (3) Preparing for the initiative’s responsible conclusion in late 2025, with plans to explore new stakeholder collaborations in 2026. maquilasolidarity.org

• Anker Research Institute (ARI): We continued to support the Anker Research Institute by continuing our corporate sponsorship, partnering on developing and launching the Gender Pay Parity e-learning program, and consulting on technical areas of data collection. ANKERRESEARCHINSTITUTE.org

• Better Buying Institute: We continue to participate in the Better Buying Purchasing Practices Index (BBPPI). In 2025, we continued collecting supplier feedback through anonymous Better Buying Institute surveys. Our score was 67 out of 100, consistent with 2024 results. We reviewed the results in September 2025 with senior Sourcing leaders, identified areas for improvement, and shared these insights with suppliers in October 2025.

• Better Work: Over the past three years, we have enrolled 23 Tier 2 material suppliers in Indonesia and Vietnam in the Better Work program, with 95% of participating factories either improving or maintaining their compliance performance. Notably, 52% of these facilities demonstrated significant progress, successfully remediating non-compliance issues related to labor contracts, social insurance, and workplace safety.

• Fair Labor Association (FLA): We maintained our accreditation as an industry leader with the Fair Labor Association. In 2025, the FLA also made the evaluation’s scores public for the first time in the organization’s history via the FLA website for a select number of participating companies, including adidas.

• International Accord for Health and Safety in the Textile and Garment Industry: We remain a committed signatory to the International Accord and an active participant in the Pakistan Accord, advancing fire, building, and electrical safety across our supply chain. In 2025, we strengthened capacity-building efforts and supported the delivery of a joint training on enhancing the effectiveness of internal audits for Accord staff and our suppliers in Pakistan. internationalaccord.org

• MADE in Myanmar: Through our continued support of the MADE program, we have remained committed to addressing labor risks in Myanmar. In 2025, all our manufacturing partners made significant progress in implementing the remedial actions identified through the MADE program assessments. Additionally, MADE provided targeted support to one of our manufacturing partners in conducting an open and fair election for Workplace Coordination Committee members. The program also shared valuable insights on wage trends, which we used as a reference for wage benchmarking to help align our partners’ compensation practices with industry standards. These efforts have contributed to greater wage transparency, fostered constructive dialogue between employers and employees, and strengthened compliance with international labor standards, despite the challenging operating environment. Our engagement with MADE underscores adidas’ ongoing commitment to responsible sourcing and human rights due diligence in high-risk regions. madeinmyanmar.eu

Beyond programmatic engagement, adidas hosted an in-person stakeholder dialogue in November 2025 at our headquarters in Herzogenaurach, Germany. The event focused on our current and future strategies to address the important issues of climate change, circularity, and just transition. The feedback and insights gained through this engagement will inform future strategy, policy, and systems development on these topics.

The 2025 stakeholder dialogue builds on the event held in Zurich in November 2024, which focused on human rights due diligence, sports sponsorships, and biodiversity and deforestation topics. We published a report summarizing the stakeholder feedback received in 2024 and key areas which will inform our approach going forward. adidas-group.com/sustainability/reports