Adidas Sustainability: Lessons and pitfalls for global companies

Is Adidas truly setting the pace in sustainable fashion?

As the global climate crisis intensifies, multinational brands are under growing scrutiny to deliver measurable environmental and social progress. Adidas has positioned itself as a frontrunner in sustainable fashion in the last years, integrating more and more environmental and social responsibility into its operations.

In recent years, the company has made measurable strides: In 2024, Adidas reported significant reductions in greenhouse gas emissions across all scopes: a 17% decrease in Scope 1 and 2 emissions, and a 20% reduction in Scope 3 emissions compared to the previous year. These efforts contributed to an overall 5.3% decrease in carbon intensity per product . The company aims for a 30% absolute reduction in GHG emissions by 2030, relative to 2017 levels, and strives for climate neutrality across its entire value chain by 2050.

However, questions remain. From greenwashing allegations and lack of deforestation transparency, to ongoing concerns about wage practices in supplier factories, the company’s progress has not been without setbacks. For ESG managers and sustainability consultants, Adidas offers not only inspiration but also cautionary lessons about the challenges of turning ambitious targets into systemic, credible change. Let’s take a closer look at what the brand is doing well, where it still falls short, and what other organisations can learn from its sustainability strategy.

Sustainable innovation: Projects and partnerships that make a difference

Adidas has launched several projects and partnerships to welcome sustainable innovation:

T-REX (Textile Recycling Excellence): Coordinated by Adidas, this EU-funded project brings together 13 major players to develop a circular system for post-consumer textile waste, aiming to transform the supply chain into a circular model

Sorting for Circularity: In collaboration with Fashion for Good and other partners, Adidas is working to enhance the sorting of re-wearable textiles using innovative AI technologies, facilitating better recycling and reuse of materials.

Adidas x Parley for the Oceans: This long-standing partnership focuses on turning ocean plastic into performance sportswear, addressing marine pollution while delivering high-demand products.

Adidas x Allbirds: In 2021, this collaboration produced a running shoe with a carbon footprint of just 2.94 kg CO2e, representing a 63% reduction compared to traditional models.

Working with suppliers: How Adidas embeds sustainability in the value chain

A sustainable business model must extend far beyond a company’s direct operations and Adidas understands this as well. The majority of its environmental footprint stems from its vast and complex supply chain, encompassing raw material sourcing, manufacturing, logistics, and product end-of-life management. These indirect emissions, classified as Scope 3 under the Greenhouse Gas Protocol, often account for the largest share of a company’s carbon footprint.

To gain a better understanding of how Scope 1, 2, and 3 emissions differ, and why Scope 3 is often the hardest to control, read our introductory guide on carbon emissions.

Human rights and ethical supply chain management

Adidas has implemented a robust framework for human rights due diligence (HRDD), recognising that social responsibility is foundational to any credible ESG strategy. Over the last 25 years, the company has built a compliance system that proactively monitors for labour violations, child labour risks, and workplace safety issues within tier-1 and tier-2 suppliers.

Suppliers are required to adhere to Adidas’s Workplace Standards, a code of conduct rooted in international human rights frameworks such as the UN Guiding Principles on Business and Human Rights and the ILO Core Conventions. Independent audits are carried out to verify compliance, and suppliers found in breach may be placed on improvement plans or, in more serious cases, removed from the supply chain.

In its latest ESG disclosures, Adidas reported that over 90% of its strategic suppliers had undergone third-party social and environmental audits in the past year, underscoring the brand’s commitment to rigorous oversight.

Capacity building and supplier education

Beyond enforcement, Adidas understands that long-term sustainability requires investment in supplier capability. To this end, the company conducts training programmes to improve suppliers’ knowledge of climate mitigation, waste management, and chemical safety. Workshops, toolkits, and ongoing dialogue are used to build shared ownership of environmental goals across its global production base.

This collaborative approach reflects a broader lesson for ESG professionals: supplier engagement isn’t just about auditing - it’s about enabling partners to grow with your sustainability ambitions. Practical support can transform compliance-driven relationships into co-innovative partnerships.

Data transparency and ESG integration

In a maturing regulatory landscape, transparency in the value chain is no longer optional. Adidas encourages suppliers to disclose emissions data, certifications, and improvement targets. While Scope 3 data collection remains a challenge industry-wide, Adidas is moving towards integrating supplier environmental metrics into its enterprise ESG systems.

Here, digital tools like Zuno Carbon can be helpful. By centralising ESG data and supplier emissions tracking, platforms like these help companies gain visibility across their supply chains, making it easier to monitor progress, benchmark suppliers, and prepare audit-ready sustainability reports.

Strengthening supplier relationships: Key practices for responsible supply chain management

For ESG managers looking to emulate Adidas’s international supply chain sustainability model, there are actionable lessons grounded in practical implementation. Adidas’s ability to embed sustainability across its vast supplier base is a result of clearly defined standards, rigorous oversight, and long-term collaboration.

Establish a clear code of conduct‍

Adidas developed its supplier code based on international benchmarks like the ILO conventions and UN Guiding Principles. Companies should adopt similar frameworks to define labour, environmental, and ethical standards from the outset.

Prioritise independent audits

Adidas uses third-party audits to monitor compliance across tiered suppliers. Independent verification helps identify early risks and improves credibility in reporting.

Invest in supplier training‍

Many suppliers lack ESG expertise or technical capacity. Adidas addresses this by providing resources, workshops, and regular support, building long-term sustainability rather than enforcing short-term compliance.

Use digital ESG platforms‍

Tools like Zuno Carbon help track emissions across Scope 3, ensure traceability, and generate accurate and transparent sustainability reports. This is particularly useful in identifying hotspots and driving continuous improvement. Learn more in our guide to ESG goal-setting.

Design for sustainability from the beginning
Adidas integrates ESG thinking into its product development process, choosing materials and manufacturing techniques that minimize     environmental impact.

Where Adidas still needs to improve

While Adidas is often spotlighted for its sustainability innovations, the company’s environmental and social governance (ESG) record is far from flawless. A closer look reveals several persistent blind spots -ranging from greenwashing to wage disparities-that challenge the brand’s credibility as a true sustainability leader. These issues provide a valuable reminder for ESG managers that setting ambitious targets must go hand-in-hand with transparency, measurable outcomes, and accountability.

Misleading climate claims: the greenwashing controversy

In 2024, Adidas came under fire when a German court ruled that its use of the term “climate neutral” in marketing campaigns was misleading to consumers. The court found that Adidas had relied primarily on carbon offsetting schemes rather than implementing actual operational emissions reductions.

This case is emblematic of a broader industry trend where brands overstate their environmental achievements without disclosing the underlying methodology or trade-offs. While offsetting can be part of a responsible carbon strategy, it should never replace real, science-based reductions. For companies pursuing net-zero, the Adidas ruling highlights a crucial lesson: ESG credibility cannot rely on opaque offsets. Brands must clearly differentiate between emissions avoidance, reduction, and compensation in their communications to avoid reputational damage and regulatory penalties.

Deforestation and biodiversity impact

Despite its increasing use of recycled and circular materials, Adidas has yet to publish a formal policy on deforestation or biodiversity preservation. This omission is particularly significant given that the brand relies on natural fibres such as cotton and rubber -  materials often linked to deforestation and ecological degradation in high-risk sourcing regions.

According to a 2024 analysis by Weavabel, Adidas in fact made efforts to reduce water usage and improve the traceability of its materials, but there remains a lack of transparency regarding the environmental impact of raw material sourcing. Unlike some of its competitors, Adidas does not publicly disclose a deforestation-free commitment or robust biodiversity targets.

Given the increasing regulatory focus on land-use change, especially under upcoming EU deforestation regulations, this gap could present both legal and reputational risks. ESG professionals should note that sustainability cannot be achieved without a clear stance on land stewardship, particularly for companies with extensive textile supply chains.

Wage justice: the living wage debate

One of the most consistent criticisms levelled at Adidas concerns the failure to ensure living wages for all workers within its global supply chain. While Adidas requires suppliers to pay at least the local minimum wage, this threshold is often insufficient to support workers and their families, particularly in countries such as Bangladesh, Vietnam, and Cambodia, where the cost of living has outpaced wage growth.

A 2024 report from Karma Wallet notes that despite Adidas’s vocal commitment to social responsibility, the company has yet to provide a transparent plan to ensure all workers across its supply chain receive a fair, living wage. Campaigns by workers’ rights organisations andNGOs have repeatedly called on Adidas to commit to wage justice, but progress has been slow and fragmented.

From an ESG management perspective, ensuring living wages is not just a moral imperative, it is a cornerstone of a socially sustainable business model. Companies that neglect wage fairness face risks related to worker turnover, labour unrest, and reputational backlash from increasingly values-driven consumers and investors.

Here are some takeaways for ESG professionals

Each of these shortcomings -greenwashing, lack of deforestation policy, and wage inequality- highlights the complexities of corporate sustainability in a global supply chain context. Adidas’s experience serves as a cautionary tale: innovation alone does not guarantee impact.

For other companies aiming to build resilient and ethical ESG strategies, the message is clear:

• Ensure clarity and honesty in sustainability communications to avoid legal challenges and consumer mistrust.
• Establish robust policies on biodiversity and  deforestation and disclose progress transparently.
• Treat fair wages as a non-negotiable part of responsible sourcing, not a future aspiration.

Sustainability is not a marketing label, it is a rigorous and ongoing process that demands consistency, transparency, and a willingness to confront uncomfortable truths. By acknowledging where Adidas still needs to improve, ESG managers can build smarter, more ethical frameworks for their own organisations

Why ESG tracking and carbon accounting matter

As ESG regulations tighten, Adidas and companies like it must reinforce the systems behind their sustainability claims. Carbon accounting and emissions tracking are no longer optional, they are essential.

What ESG software enables

End-to-end emissions tracking: Gain full visibility overScope 1, 2, and 3 emissions across owned operations, suppliers, and downstream activities. ESG software provides consistent data collection and real-time monitoring, enabling a complete and auditable carbon footprint.

Unified ESG data management: Break down data silos by centralising ESG and sustainability metrics across departments, business units, and external partners. This integration supports strategic decision-making and improves reporting efficiency across global operations.

Automated, audit-ready disclosures: Streamline regulatory compliance with ready-to-export reports aligned with frameworks such as the GRI and IFRS. Built-in templates and auto-validation tools reduce manual workload and ensure reporting accuracy.

Emissions hotspot analysis and strategy alignment: Use AI-powered analytics to identify emissions hotspots across your value chain, then design targeted interventions tied to science-based targets and business goals. This transforms data into action and keeps decarbonization efforts focused where they matter most.

Real progress requires real accountability

Adidas sustainability offers both inspiration and caution. Its partnerships, material innovation, and supplier accountability offer valuable lessons but its shortcomings remind us that sustainability is not a destination but an evolving practice.

For global ESG managers and sustainability consultants, the Adidas case emphasises the importance of:

• Define goals transparently and measure them accurately
• Treat suppliers as partners, not liabilities
• Use carbon accounting software to track, improve, and disclose performance

Want to simplify your own ESG journey? Book a demo with Zuno Carbon to explore how our technology can help your organisation deliver on its sustainability strategy—accurately and confidently.

Frequently Asked Questions

What is Adidas doing to be socially responsible?

Adidas has implemented a code of conduct for all suppliers, promotes workplace safety, and invests in labour rights training. However, the brand has been criticized for not ensuring living wages across its supply chain, showing room for improvement in its social responsibility commitments.

What is Adidas doing for climate change?

Adidas sustainability goals include reducing carbon intensity by 9% by 2025 and achieving long-term net-zero targets by 2050. The company uses recycled materials, collaborates with organizations like Parley for the Oceans, and pilots circularity projects. Yet critics argue its reliance on carbon offsets and limited transparency in some areas call for stronger action and disclosure.

‍