Inside Adidas’ Approach to Growth and Sustainability
adidas’ 2024 annual report shows it had a year of strong financial performance – it improved its operating profit by more than €1bn (US$1.08bn) to €1.337bn (US$1.45bn).
The brand also continues to position itself as a sustainability leader in the sportswear industry.
Its sustainability information is reported in line with the CSRD and corresponding ESRS on a voluntary basis.
“I am confident we have the product pipeline and marketing plans to continue to drive brand heat globally," says Bjørn Gulden, CEO of adidas.
“Of course there is a lot of macroeconomic uncertainty right now, but with products that we think are on trend and the attitude of being agile and more local, I cannot see why we should not be successful.”
adidas’ emissions reductions
adidas’ main target is to reach net zero by 2050 and it is following SBTi guidance to be aligned with a 1.5°C pathway.
In 2025 it aims to achieve a 9% reduction in carbon intensity.
By 2030, adidas says its targets are to achieve a 70% reduction in Scope 1 and 2 emissions and a 43% reduction in Scope 3 emissions.
In 2024, it achieved reductions of:
- 17% in Scope 1 and Scope 2
- 20% in Scope 3
- 5.3% carbon intensity
- 20% across all three scopes.
Sustainable materials
“In 2024, climate change, pollution, water, biodiversity and ecosystems, and resource use and circular economy were confirmed as material environmental impact areas for us to continue to focus on in the future,” the report says.
To address this, it is not just focussing on greenhouse gas emissions, but also the materials it uses.
It is committed to a deforestation-free supply chain for leather by 2030 at the latest and is evolving its approach to circularity.
adidas is engaging in cross-industry projects focussed on circularity including T-REX and Sorting for Circularity.
T-REX stands for Textile Recycling Excellence, a project that aims to demonstrate the full recycling process of polyester, polyamide 6 and cellulosic materials from textile waste into new garments.
The project has a consortium of 13 partners including adidas, Veolia and Fashion for Good.
adidas has also achieved a 99% rate of use for recycled polyester where possible, replacing virgin materials.
Value chain responsibility
adidas recognises the importance of responsible business practices throughout its value chain.
The company conducts due diligence to identify and address potential negative impacts related to human rights and the environment.
This includes assessing risks associated with its suppliers and working to improve their environmental and social performance.
adidas also aims to ensure fair labour practices and safe working conditions across its supply chain.
Investing in innovation
adidas is actively investing in research and development to create more sustainable products and processes.
This includes exploring innovative materials, such as bio-based alternatives to conventional synthetics, and developing new manufacturing techniques that reduce waste and energy consumption.
The company is also working to optimise its logistics and transportation operations to minimize its carbon footprint.
adidas also supports initiatives that promote environmental conservation and biodiversity.
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