Adidas is the world’s second-largest sportswear company by revenue, generating €24.1 billion in net sales in fiscal year 2024 across footwear, apparel, and accessories in more than 160 countries. The company structures its sustainability program around six pillars: climate action, circularity, nature, materials, human rights, and supply chain accountability. Its most current public disclosures are the Adidas Annual Report 2024 (published March 5, 2025) and the Adidas Annual Report 2025 (published March 2, 2026), the latter being the most recent, with the 2024 report representing the first Adidas disclosure prepared in full accordance with the EU Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS).

The program carries significant real progress on emissions, recycled polyester, and circular product design alongside a material legal risk: in March 2025, a German court ruled against Adidas for misleading advertising related to its “climate neutral by 2050” claim, ordering the company to remove the statement from all advertising. The ruling, secured by Environmental Action Germany (DUH), reflects the sharpening regulatory environment for corporate sustainability claims across the EU and globally.

Source

report.adidas-group.com/2024/en
https://www.adidas-group.com/en/sustainability/resource-center/reports

Sustainability Strategy and Goals

Adidas’ formal sustainability strategy is anchored in SBTi-approved science-based targets for Scope 1, 2, and 3 and a net zero commitment by 2050. The company’s strategy aligns with the 1.5°C pathway of the Paris Agreement and explicitly references the Kunming-Montreal Global Biodiversity Framework, the EU Biodiversity Strategy for 2030, the EU Deforestation Regulation (EUDR), and the UN Guiding Principles on Business and Human Rights (UNGP). Sustainability and ESG reporting now directly reaches the CEO following a governance change made in 2024.

Net Zero and Carbon Emissions

Adidas reported a 17% reduction in Scope 1 and 2 emissions and a 20% reduction in Scope 3 emissions in FY2024, both measured against the prior year. Against its 2022 SBTi baseline of approximately 6.74 million MTCO₂e (Scope 1, 2, and 3 combined), the company targets a 70% reduction in Scope 1 and 2 by 2030 and a 43% reduction in Scope 3 by 2030. The net zero target of 90% reduction across all scopes is set for 2050.

• 2022 SBTi baseline (Scope 1, 2, and 3): approximately 6.74 million MTCO₂e​
• FY2024 emissions reduction: 17% in Scope 1 and 2; 20% in Scope 3; 20% combined; 5.3% reduction in carbon intensity per product​
• 2030 targets: 70% reduction in Scope 1 and 2; 43% reduction in Scope 3 (both vs. 2022 baseline)​
• Net zero target: 90% reduction across Scope 1, 2, and 3 by 2050​
• Carbon intensity per product: 5.3% reduction in FY2024; interim target of 9% reduction by 2025​
• Own operations total energy consumption: 494,489 MWh (FY2023), down from 510,539 MWh in FY2022​

Water Stewardship

Adidas’ water strategy focuses primarily on its upstream manufacturing supply chain, where dyeing, finishing, and washing processes drive the largest water withdrawals. The company does not have a water positive or water replenishment target for its own direct operations but requires suppliers in water-stressed regions to disclose water use and implement reduction plans through its HREDD system.​

• Water and sanitation protections in supply chain communities identified as a material impact area in FY2025 ESRS disclosure​
• Supplier rooftop solar program indirectly reduces water intensity by shifting energy sources away from water-intensive thermal power; total rooftop solar capacity at key suppliers reached 267 MWp in 2023, up 44% year over year​
• Adidas is a member of the Better Cotton Initiative (BCI), which embeds water efficiency standards in cotton farming across key origin countries​
• No standalone corporate water positive or replenishment target disclosed as of the 2024 Annual Report

Regenerative Agriculture

Adidas does not operate a formal regenerative agriculture program. Its closest analogous strategy covers sustainable cotton sourcing through BCI membership, responsible wool certification, and the deforestation-free leather supply chain commitment.

• 100% third-party certified wool by end of 2024 target: confirmed met in FY2024; adidas uses Responsible Wool Standard (RWS) and equivalent certified schemes​
• BCI membership commits adidas to sourcing cotton from farmers trained in water-efficient and reduced-pesticide practices​
• Adidas does not disclose acreage or farm-level regenerative agriculture metrics for cotton, rubber, or other bio-based commodities as of the FY2024 Annual Report
• Nature Strategy launched in FY2025 outlines integration of human rights and deforestation commitments in upstream supply chain with focus on leather, natural rubber, and timber​

Deforestation and Biodiversity

Adidas formally targets deforestation- and conversion-free (DCF) supply chains for all high-risk commodities, specifically bovine leather, natural rubber, and timber, by 2030 or earlier. This commitment is formalized in the Adidas Biodiversity and Ecosystems Policy, launched in 2025, and is informed by the EU Deforestation Regulation and the Kunming-Montreal Global Biodiversity Framework.

• DCF bovine leather target: all sourced bovine leather (excluding recycled leather and trims) to be deforestation- and conversion-free by 2030​
• High-risk commodity coverage: bovine leather, natural rubber, and timber under the Nature Strategy (2025)​
• 100% certified wool achieved in FY2024 (Responsible Wool Standard or equivalent)​
• Zero sourcing of raw materials from endangered or threatened species (IUCN Red List): ongoing target, met in FY2024 with zero violations recorded​
• Adidas actively participates in Textile Exchange’s Deforestation-free Call to Action for Leather and the Leather Working Group’s Chain of Custody task team​

Packaging and Circular Economy

Adidas achieved 99% recycled polyester usage across all products where technically possible in FY2024, one percentage point short of its 100% target set in 2017 and brought forward to end of 2024. The company has shifted its circular ambition from plastic bottle recycling toward textile-to-textile recycling, setting a new target of 10% of polyester from recycled textile waste by 2030.

• Recycled polyester in products (FY2024): 99%, versus target of 100% by end of 2024; target set in 2017​
• New recycled polyester roadmap target: 10% from recycled textile waste feedstock by 2030 (aligned with Ellen MacArthur Foundation’s circular fashion framework)​
• T-REX (Textile Recycling Excellence) project: cross-industry initiative involving 13 partners including Adidas, Veolia, and Fashion for Good, targeting full textile recycling of polyester, polyamide 6, and cellulosic materials​
• Sorting for Circularity project: improving sorting infrastructure for mixed textile waste to enable higher-grade recycling inputs​
• Parley for the Oceans partnership: upcycles marine plastic waste and intercepted deep-sea fishing nets into product materials; planned production of 11 million pairs of Parley shoes annually​
• 100% recycled low-density polyethylene (LDPE) transport bags in use since end of 2021, with a 20% weight reduction achieved through bag re-engineering​
• Futurecraft Loop: 100% TPU recyclable running shoe design; all components are one material type with no adhesive, enabling full closed-loop recovery; commercial rollout phase completed in 2022​
• Made to Be Remade take-back program: launched globally in 2023, allowing customers to return worn Futurecraft Loop products for reprocessing​

Human Rights and Responsible Sourcing

Adidas’ Human Rights and Environmental Due Diligence (HREDD) system governs labor and human rights across its operations and supply chain, embedded in the adidas Workplace Standards, its supply chain code of conduct. In FY2025, adidas formalized HREDD expansion to high-risk non-trade procurement (NTP) and downstream logistics, extending accountability beyond direct manufacturing.

• HREDD system covers forced labor, child labor, discrimination, wages, working hours, health and safety, freedom of association, and collective bargaining​
• Social and Environmental Affairs (SEA) team conducts regular on-site worker interviews and tracks independent worker hotlines and internal complaint systems​
• Key identified salient human rights risks: excessive working hours, fair wages, freedom of association, gender equality, and risk of child and forced labor​
• FY2025 HREDD expansion: formalized integration of NTP suppliers and downstream logistics as new due diligence categories​
• Adidas Fashion Transparency Index score: 51 to 60% (consistent across 2021 to 2023), reflecting mid-range disclosure levels among global apparel brands​

Nutrition and Health

Adidas is a sportswear and footwear manufacturer with no food product portfolio, and holds no nutrition commitments. Its health-related sustainability contributions are expressed through product safety standards, chemical management policies, and consumer-facing programs that promote physical activity and environmental awareness.​

• No nutrition or food-related sustainability commitments​
• Product safety covers chemical management across dyeing, finishing, and manufacturing processes, with restricted substance lists (RSL) applied to all product categories​
• Run for the Oceans campaign mobilizes consumer physical activity alongside ocean plastic awareness and raises funds for Parley Ocean School educational programs​

Community and Social Impact

Adidas’ community sustainability work focuses on supply chain community protections, particularly around water and sanitation access near factory operations, and on consumer engagement through sport-linked environmental campaigns. The ESRS S3 disclosure in the FY2025 Annual Report identifies upstream supply chain factory operations as the most significant source of community impact, particularly where factory water use affects local clean water access.​

• Supply chain community risks: clean water and sanitation access near factory sites, and protection of human rights defenders (HRDs) facing potential retaliation​
• Community grievance reporting channels and timely remediation are core metrics in the FY2025 ESRS S3 disclosure​
• Run for the Oceans: annual event linking sport participation to funding for Parley Ocean School, which provides ocean literacy education in coastal communities globally​
• Adidas Workplace Standards apply to all direct and relevant indirect suppliers, covering community-level environmental and social standards​

Governance and Transparency

The FY2024 Annual Report marks adidas’ first CSRD-compliant disclosure, prepared voluntarily ahead of the mandatory CSRD deadline. A Double Materiality Assessment (DMA) was completed in 2024, identifying climate change, pollution, water, biodiversity and ecosystems, and resource use and circular economy as material environmental impact areas. The central Sustainability and ESG team now reports directly to the CEO, a governance change formalized in 2024.

• First CSRD and ESRS-compliant sustainability statement published with the FY2024 Annual Report in March 2025​
• Double Materiality Assessment confirmed five material environmental impact areas: climate, pollution, water, biodiversity and ecosystems, and circular economy​
• SBTi-approved science-based targets for Scope 1, 2, and 3​
• CDP rated; disclosure covers GHG emissions, water security, and forests​
• Greenwashing court ruling (March 2025): Nuremberg-Fürth Regional Court ordered adidas to stop advertising “climate neutral by 2050” due to lack of concrete post-2030 pathway and absence of offset disclosure​

Technology and Innovation

Adidas’ sustainability innovation centers on textile-to-textile recycling infrastructure, closed-loop footwear design, ocean plastic upcycling, and supplier renewable energy deployment. The T-REX project and Futurecraft Loop represent the company’s most advanced material circularity technologies.

• Futurecraft Loop: single-material 100% TPU shoe design with no adhesive, enabling full closed-loop mechanical recycling via the Made to Be Remade take-back system​
• T-REX project: 13 partners including Adidas, Veolia, and Fashion for Good, targeting complete recycling of polyester, polyamide 6, and cellulosic materials from textile waste into new garments​
• Supplier rooftop solar: total installed capacity at key supplier facilities reached 267 MWp in 2023, up 44% year over year​
• Off-site renewable energy at suppliers: 35 supplier factories using over 50% renewable electricity in 2023; suppliers sourced over 447,268 MWh from off-site renewable projects in 2023, up 38% year over year​
• Virtual PPA for Europe signed in 2023: ten-year contract supplying approximately 50,000 MWh of solar-generated renewable electricity per year to European operations starting 2025​

Global Partnerships and Advocacy

Adidas’ key external partnerships span ocean plastic recovery (Parley), textile recycling infrastructure (T-REX, Sorting for Circularity, Fashion for Good), sustainable cotton (BCI), deforestation-free leather standards (Leather Working Group, Textile Exchange), and water stewardship.

• Parley for the Oceans: ocean plastic interception and upcycling partnership; planned 11 million pairs of Parley shoes annually​
• T-REX and Sorting for Circularity projects: cross-industry circular textile initiatives co-funded with Veolia, Fashion for Good, and 11 other partners​
• Better Cotton Initiative (BCI): sustainable cotton sourcing with water efficiency and reduced chemical use standards​
• Leather Working Group and Textile Exchange Deforestation-free Call to Action: industry standard development for traceability and DCF protocols​
• Ellen MacArthur Foundation circular fashion framework: informs adidas’ new textile-to-textile recycled polyester roadmap​

Source

report.adidas-group.com/2024/en
report.adidas-group.com/2025/en
https://www.adidas-group.com/en/sustainability/resource-center/reports

Progress vs. Target Tracker

Commitment	Target	Current Status	Assessment
70% reduction in Scope 1 and 2 emissions	By 2030 vs. 2022 baseline	17% reduction in FY2024 vs. prior year; cumulative trajectory not confirmed against 2022 baseline	On track
43% reduction in Scope 3 emissions	By 2030 vs. 2022 baseline	20% reduction in FY2024 vs. prior year; cumulative trajectory not confirmed against 2022 baseline	On track
9% carbon intensity reduction per product	By 2025	5.3% achieved in FY2024; 3.7 percentage points remaining to hit 2025 target	At risk
Net zero (90% reduction Scope 1, 2, and 3)	2050	“Climate neutral by 2050” advertising claim banned by German court in March 2025 for lack of disclosed pathway	At risk
100% recycled polyester wherever technically possible	By end of 2024	99% achieved in FY2024; one percentage point short of target	Missed
10% of polyester from recycled textile waste	By 2030	New target set in FY2024; program in early development via T-REX and Sorting for Circularity	On track
100% third-party certified wool	By end of 2024	Met in FY2024 (Responsible Wool Standard and equivalent)	On track
DCF bovine leather supply chain	By 2030	Country-of-origin mapping underway; engagement with indirect leather suppliers in progress	On track
DCF natural rubber and timber supply chains	By 2030	Covered under Nature Strategy (2025); mapping in early phase	Needs monitoring
Zero sourcing from endangered/threatened species	Ongoing	Met in FY2024 with zero violations recorded	On track
100% LDPE transport bags from recycled material	End of 2021	Achieved; 20% weight reduction also delivered	On track
HREDD expanded to NTP and downstream logistics	By 2025	Formalized in FY2025 Annual Report; expansion underway	On track
Climate neutral product advertising	Removed post court ruling	“Climate neutral by 2050” claim removed from adidas website following March 2025 court order	Compliance required

Source

report.adidas-group.com/2024/en
https://www.downtoearth.org.in/climate-change/german-court-orders-adidas-to-desist-from-saying-it-would-be-climate-neutral-by-2050
https://report.adidas-group.com/2024/en/group-management-report-sustainability-statement/esrs-e5-resource-use-and-circular-economy/metrics-and-targets

Key Sustainability Innovations and Technologies

Adidas’ most significant sustainability innovations cluster around closed-loop product design, textile-to-textile recycling infrastructure, ocean plastic upcycling, and supply chain renewable energy.

Futurecraft Loop and Made to Be Remade

Futurecraft Loop is adidas’ most structurally significant circular product innovation. The shoe is made entirely from 100% thermoplastic polyurethane (TPU), with no adhesive bonding any component to another. When a consumer returns a worn pair under the Made to Be Remade take-back program, the shoes are washed, ground into pellets, and melted into material for new product components, with no waste generated in the process. The commercial version launched in 2022 and the global take-back program scaled in 2023. This closed-loop design philosophy has no equivalent in commercial-scale production among adidas’ major competitors at the time of launch.

Parley for the Oceans

Adidas’ partnership with Parley for the Oceans converts intercepted marine plastic waste and illegal deep-sea fishing nets into yarn for footwear uppers, apparel, and accessories. The partnership targets annual production of 11 million pairs of Parley footwear. Products in the Parley range carry the Parley Ocean Plastic certification, with material sourced from beaches, remote islands, and coastal communities before it can enter marine ecosystems. The program has expanded beyond footwear to include football jerseys, tennis equipment, and swimwear.

T-REX and Textile-to-Textile Recycling

T-REX (Textile Recycling Excellence) is a 13-partner cross-industry initiative in which adidas participates alongside Veolia and Fashion for Good. The project aims to demonstrate the complete industrial recycling pathway for polyester, polyamide 6, and cellulosic materials from post-consumer textile waste into new garments, closing the loop on the apparel industry’s most used fiber types. This builds on adidas’ new 2030 target to source 10% of all polyester from recycled textile waste rather than plastic bottles. The shift from bottle-to-fiber to fiber-to-fiber recycling is aligned with the Ellen MacArthur Foundation’s circular fashion framework and represents a more advanced form of material circularity.

Supplier Renewable Energy Deployment

Adidas is advancing supplier decarbonization through a combination of rooftop solar incentives and off-site renewable energy contracting. Supplier rooftop solar capacity reached 267 MWp in 2023, a 44% year-over-year increase. Thirty-five supplier factories had converted to more than 50% renewable electricity in 2023, and suppliers collectively sourced over 447,268 MWh from off-site renewable projects, a 38% increase from 2022. Adidas also signed a ten-year virtual PPA in 2023 to supply its European operations with approximately 50,000 MWh of solar electricity annually from 2025.​

Source

report.adidas-group.com/2024/en
report.adidas-group.com/2025/en
https://parley.tv/journal/2019/4/17/the-next-step

Measurable Impacts

Adidas’ FY2024 Annual Report and FY2025 Annual Report provide the following multi-year performance data.

• Scope 1 and 2 emissions reduction (FY2024 vs. FY2023): 17%​
• Scope 3 emissions reduction (FY2024 vs. FY2023): 20%​
• Combined Scope 1, 2, and 3 reduction (FY2024 vs. FY2023): 20%​
• Carbon intensity per product (FY2024): reduced 5.3% vs. FY2023; interim target of 9% by 2025​
• SBTi baseline (2022): approximately 6.74 million MTCO₂e across Scope 1, 2, and 3​
• Own operations total energy consumption (FY2023): 494,489 MWh, down from 510,539 MWh (FY2022)​
• Supplier rooftop solar capacity (FY2023): 267 MWp, up 44% from FY2022​
• Supplier off-site renewable electricity (FY2023): 447,268 MWh, up 38% from FY2022​
• Recycled polyester in products (FY2024): 99%, up from 96% in FY2022
• Certified wool (FY2024): 100% third-party certified, meeting target​
• Zero sourcing violations from endangered/threatened species (FY2024): confirmed​
• Made to Be Remade take-back program: global rollout completed in 2023​
• Fashion Transparency Index score: 51 to 60% (FY2021 to FY2023), consistent​

Source

report.adidas-group.com/2024/en
https://supplychaindigital.com/sustainability/inside-adidas-approach-to-growth-and-sustainability
https://manufacturingdigital.com/sustainability-esg/inside-adidas-approach-to-growth-and-sustainability

Challenges and Areas for Improvement

Adidas faces four material challenges that carry legal, reputational, and operational risk for its sustainability program.

Greenwashing Court Ruling and Claims Credibility

In March 2025, the Nuremberg-Fürth Regional Court ordered adidas to stop advertising its “climate neutral by 2050” claim, ruling that the statement was misleading because adidas had not explained how it would achieve climate neutrality beyond 2030 or whether it would rely on carbon offsets. The case, filed by Environmental Action Germany (DUH), resulted in the removal of the claim from the adidas website. No financial penalty was imposed, but the reputational and legal precedent is significant. Adidas is now the second major European consumer brand, alongside Lufthansa, to lose a greenwashing lawsuit in Germany in 2025.

Carbon Intensity Target at Risk

Adidas’ interim target of a 9% carbon intensity reduction per product by 2025 was only 5.3% achieved as of FY2024, leaving a 3.7 percentage point gap to close in a single year. Given that this is the most near-term quantified milestone in adidas’ climate roadmap, missing it in the same year as the greenwashing ruling would compound credibility pressure on the company’s broader 2030 targets.​

Supply Chain Scope 3 Complexity

Adidas’ Scope 3 emissions represent the dominant share of its total footprint, driven by Tier 2 and Tier 3 raw material production, dyeing and finishing processes, and consumer product use. The company has acknowledged that supplier data quality across indirect procurement is uneven, and HREDD coverage was only extended to non-trade procurement and downstream logistics in FY2025, meaning full value chain emissions accounting has historically been incomplete.

Living Wages and Labor Rights in Supply Chain

Adidas’ salient human rights risks include fair wages and excessive working hours across its supply chain, particularly in Asia. As of the most recent disclosure, adidas has not published a specific living wage implementation target with a percentage of supply chain workers covered or a defined timeline. The company acknowledges that “more should be done to improve wages” in its Eastern European supplier facilities, a gap first noted publicly by the Clean Clothes Campaign and not yet formally closed in published targets.

Source

report.adidas-group.com/2024/en
https://www.downtoearth.org.in/climate-change/german-court-orders-adidas-to-desist-from-saying-it-would-be-climate-neutral-by-2050
https://trellis.net/article/adidas-greenwashing-lawsuit-warning-climate-claims/

Future Plans and Long-Term Goals

Adidas’ forward roadmap through 2030 and 2050 centers on supply chain decarbonization, textile-to-textile circularity, DCF commodity sourcing, and expanded HREDD coverage.

• Achieve 70% reduction in Scope 1 and 2 emissions and 43% reduction in Scope 3 emissions by 2030 vs. 2022 baseline​
• Achieve net zero across Scope 1, 2, and 3 by 2050 (post-court ruling: without the “climate neutral” label in advertising, pending pathway disclosure)​
• Source 10% of all polyester from recycled textile waste feedstock by 2030​
• Achieve DCF supply chains for bovine leather, natural rubber, and timber by 2030 or earlier​
• Expand supplier renewable energy coverage through rooftop solar incentives, PPA facilitation, and Green Tariff support​
• Fully embed HREDD across NTP categories and downstream logistics by 2026​
• Scale Made to Be Remade take-back and Futurecraft Loop circular product range across additional product categories​
• Develop and communicate a transparent post-2030 pathway to net zero to address the requirements raised by the DUH greenwashing ruling​

Compared to Nike, adidas lags on Scope 1 and 2 operational emission reduction, where Nike achieved a 69% absolute reduction in FY2024 against its FY2020 baseline, versus adidas’ 17% reduction in FY2024 against the prior year. Adidas leads Nike on formal circular product design, specifically the Futurecraft Loop system, which has no equivalent in Nike’s commercial product range at scale.​

Source

report.adidas-group.com/2024/en
report.adidas-group.com/2025/en

Comparisons to Industry Competitors

Adidas is benchmarked here against Nike (the world’s largest sportswear company and its closest global peer) and Puma (the third-largest sportswear brand with disclosed ESG targets).

Sportswear Sustainability Metrics

Metric	Adidas	Nike	Puma
Scope 1 and 2 emission reduction	17% in FY2024 vs. prior year; 70% target by 2030 vs. 2022	69% absolute reduction in FY2024 vs. FY2020 baseline	Climate neutral own operations target by 2030; 88% reduction achieved at headquarters
Scope 3 emission reduction	20% in FY2024 vs. prior year; 43% target by 2030 vs. 2022	36% absolute reduction in FY2024 vs. FY2020 baseline (manufacturing and transportation)	SBTi-approved Scope 3 target; no equivalent published reduction figure
Net zero target	2050 (net zero advertising banned in Germany, March 2025)	2050 (Move to Zero initiative)	2050
Renewable electricity (own operations)	Virtual PPA covering European operations from 2025; global coverage not at 100%	96% of global operational electricity from renewables in FY2024	Climate neutral operations by 2030; renewable target not separately quantified
Recycled materials in products	99% recycled polyester (FY2024); 100% certified wool	96% renewable electricity does not directly translate; high recycled content across Flyknit and key footwear lines	RE:SUEDE biodegradable sneakers; RE project with recycled and repurposed materials
Circular product program	Futurecraft Loop (100% TPU, closed-loop); Made to Be Remade take-back	Move to Zero waste program; Reuse-A-Shoe for end-of-life	Puma RE collection; biodegradable sneaker development
Waste diversion (operational)	Not separately disclosed at equivalent granularity	100% operational waste diverted from landfill by strategic finished goods suppliers in FY2024	Not separately disclosed at equivalent granularity
Greenwashing legal risk	German court ruling against “climate neutral by 2050” claim (March 2025)	No equivalent ruling	No equivalent ruling
SBTi-approved targets	Yes (Scope 1, 2, and 3)	Yes (Scope 1, 2, and 3)	Yes (Scope 1, 2, and 3)

Nike’s FY2024 performance on operational emissions (69% reduction from FY2020) is substantially stronger than adidas’ FY2024 position and reflects a longer runway of concentrated operational investment in renewable energy. Nike sourced 96% of its global operational electricity from renewables in FY2024, compared to adidas’ ongoing transition that has not reached an equivalent operational coverage figure. Puma’s RE project and biodegradable sneaker development represent a third design philosophy that prioritizes end-of-life biodegradability over adidas’ mechanical closed-loop approach and Nike’s take-back and recycling model.

Source

report.adidas-group.com/2024/en
https://about.nike.com/en/mission/focus-areas/sustainability
https://consulting.groyyo.com/embracing-sustainability-how-global-sports-brands-are-leading-the-way/

What to Watch: 12 to 18 Month Indicators

Three signals over the next 12 to 18 months will determine whether adidas’ sustainability trajectory strengthens or remains under legal and operational pressure.

Carbon Intensity Target: FY2025 Performance

Adidas set a target of 9% carbon intensity reduction per product by 2025, measured against its 2022 baseline. As of FY2024, it had achieved 5.3%, leaving a 3.7 percentage point gap to cover in a single year. The FY2025 Annual Report, published March 2, 2026, will either confirm this target was met or document a second consecutive year of underperformance against the most quantified near-term milestone in adidas’ climate roadmap. A confirmed miss would add evidence to the concerns already raised by the March 2025 German court ruling over the credibility of adidas’ climate commitments.

Post-Court-Ruling Climate Claims Framework

Following the March 2025 DUH court ruling, adidas removed its “climate neutral by 2050” advertising claim but has not yet published a replacement communication framework or a detailed post-2030 decarbonization pathway. The next 12 to 18 months will show whether adidas responds with a revised, evidence-backed net zero narrative that satisfies both the German Act Against Unfair Competition and the incoming EU Green Claims Directive requirements, or whether it adopts a more conservative claims posture without a clear consumer-facing climate message. This choice will directly affect brand credibility among sustainability-conscious consumers in the European market, where adidas generates a large share of revenue.

Textile-to-Textile Recycled Polyester Scaling

Adidas’ new 2030 target of sourcing 10% of all polyester from recycled textile waste feedstock requires scaling the T-REX processing infrastructure from pilot to commercial volume within the next four to five years. Given that recycled textile polyester currently accounts for a very small share of global recycled fiber supply, the FY2025 and FY2026 reports will reveal whether T-REX and Sorting for Circularity projects are advancing toward commercial scale or remaining at demonstration phase. Early indicators include volumes processed by T-REX partners and the share of adidas’ recycled polyester sourced from textile waste rather than plastic bottles.

Source

report.adidas-group.com/2024/en
report.adidas-group.com/2025/en
https://trellis.net/article/adidas-greenwashing-lawsuit-warning-climate-claims/

Adidas’ sustainability record through FY2024 presents a genuinely mixed picture. The 20% combined Scope 1, 2, and 3 reduction in a single year, 99% recycled polyester at commercial scale, and 100% certified wool are real achievements that reflect years of supply chain investment. The Futurecraft Loop system remains the most structurally credible circular footwear design in commercial sportswear. At the same time, the March 2025 German court ruling on the “climate neutral by 2050” advertising claim is a significant governance failure: adidas made a public climate commitment without a disclosed, credible post-2030 pathway, and a court found that this constitutes misleading advertising.

Three strategic takeaways for practitioners benchmarking or replicating this approach:

• CSRD-first disclosure architecture: Adidas is one of the first major global sportswear brands to produce a fully CSRD and ESRS-compliant sustainability statement, doing so voluntarily ahead of the mandatory deadline. This positions it well for the incoming EU regulatory reporting wave, but it also exposes a gap between disclosure quality and claims quality: comprehensive reporting did not prevent the greenwashing ruling. Practitioners should ensure that their public marketing language tracks precisely with what is disclosed in CSRD filings, particularly around future-dated climate neutrality claims.​
• Fiber-to-fiber recycling as the next material frontier: Adidas’ shift from bottle-to-fiber to fiber-to-fiber recycled polyester as the basis of its 2030 circular materials target reflects an important industry transition. Organizations in textile and consumer goods industries should begin mapping their polyester supply chains for textile waste feedstock access, as regulatory pressure (EU Textile Strategy, extended producer responsibility schemes) and consumer scrutiny are both moving in this direction faster than supply chain infrastructure is currently able to absorb.​
• Legal risk in climate advertising: The DUH ruling against adidas, combined with the parallel DUH ruling against Lufthansa and EU Directive 2024/825 on Green Claims, signals that vague future climate neutrality advertising carries growing legal exposure across the EU. Practitioners drafting sustainability claims for marketing materials should require legal review against the Act Against Unfair Competition in Germany and the Green Claims Directive across all EU markets, not just in sustainability reports, before any public commitment is made.

Source

report.adidas-group.com/2024/en
report.adidas-group.com/2025/en
https://trellis.net/article/adidas-greenwashing-lawsuit-warning-climate-claims/
https://www.downtoearth.org.in/climate-change/german-court-orders-adidas-to-desist-from-saying-it-would-be-climate-neutral-by-2050