#Textiles & Apparel / Garment

2021-11-04

adidas awarded strong ESG rating by S&P for outstanding sustainability performance

Following a thorough assessment by rating agency S&P adidas’ sustainability performance has received an outstanding evaluation. Assessed across Environmental, Social and Governance (ESG) dimensions, adidas was awarded with an ESG Profile Score of 79 out of 100, one of the highest scores applied across all companies assessed globally. Combined with a strong Preparedness Score (+6), the company’s overall ESG Evaluation Score amounts to 85, placing adidas sixth in the entire S&P Global Rating Universe.

Martin Shankland, member of the adidas Executive Board responsible for Global Operations, said:

We have doubled down on our commitment to sustainability as a focus area in our ‘Own the Game’ strategy and are proud to see this being recognized externally.

“The results underline our leadership approach to manage sustainability across all dimensions and the entire company. We are convinced that the continued integration of sustainability into our strategy will support ongoing future success of adidas – in the interest of all stakeholders.”

In its assessment, S&P emphasizes adidas’ industry-leading approach to innovation, supply chain management and consumer engagement. In particular, credit is given to adidas’ ambitions to scale the use of sustainable materials, to expand circular services and to deliver against ambitious net-zero emission targets. In addition to adidas’ strong control mechanisms over its supply chain ensuring fair and safe labor practices, the analysis also calls out the integration of a sustainability target into the compensation system of the Executive Board. The close interaction between the Supervisory Board and the Executive Board is seen as exemplary and supportive of the overall strategy execution.

The S&P Global Ratings’ ESG Evaluation assesses a company’s ESG performance (ESG Profile Score) and ability to prepare for potential future risks and opportunities (Preparedness Score). The ESG Profile Score and Preparedness Score sum up to the final ESG Evaluation Score that allows comparison with other entities globally, across sectors. The upper score of 100 indicates the lowest level of risk.

The final report is the result of comprehensive engagements between S&P Global Rating, adidas and its senior management, including members of both the Supervisory Board and the Executive Board, presenting a holistic picture of the company’s sustainability performance.

“Production is a product”

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