Adidas is a very popular brand and is consistently ranked as one of the most sustainable companies around the world. After many class discussions about how horrible the fashion industry is for the environment and for people, I decided to look further into Adidas sustainability.
I was happy to find that Adidas is actually quite deserving of their reputation as a sustainable company as they have many sustainability initiatives for each aspect of the triple bottom line.
People
The company is committed to transparency and even provides a complete list of their suppliers. Although in the textiles industry it is notoriously difficult to ensure that everyone in the supply chain is upholding a company’s outlined standards, Adidas has put a lot of programs in place to ensure ethical sourcing. Adidas works with 1,079 independent factories. In 2015 they did 1,255 factory visits and conducted 1,135 social compliance and environmental audits. In addition to this, Adidas has many humanitarian endeavors such as their Fair Compensation Strategy and Women’s Empowerment Program.
Planet
The production of clothing and accessories is very resource and waste intensive. Adidas recognizes this and is working on creating new technologies to modify their current practices. They have two notable innovation initiatives and partnerships I would like to share.
Innovation:
- DryDye: a polyester fabric dyeing process created by Adidas that uses no water, 50% fewer chemicals and 50% less energy than the traditional fabric dyeing process.
- Sports Infinity: a collaborative R&D project, lead by Adidas, to develop an inexhaustible 3D super material that can be broken down and remolded in a waste-free adhesive-free process. The implementation of Sports Infinity would be a major revolution, as it would drastically reduce the number of resources being used.
Partnerships:
- The Better Cotton Initiative, a non-profit organization that certifies cotton farms. Adidas goal is to have 100% of their cotton be Better Cotton by 2018.
- Parley for the Oceans, an organization dedicated to reducing plastic waste in oceans, with whom Adidas collaborated with to make shoes made of recycled plastic from oceans.
Profit
On March 8, 2017, Adidas announced their sales for 2016. They reached € 19.3 billion, up 18% on a currency-neutral basis and net income from continuing operations climbed 41% to € 1.019 billion. Their stock price also reached a record high. Adidas high profits are what enable them to invest in innovative R&D projects.
At the end of the day, Adidas is active in the fast fashion industry and not exactly a “sustainable” company. However, they put a great emphasis on sustainability and motivate others in their industry to do the same. In the realm of sustainable fashion brands, I believe it is fair to say Adidas is a sustainable company.
CarleneLoughlin
March 14, 2017 — 12:59 pm
I had no idea Adidas was this focused on sustainability and business ethics. I wonder when they chose to include this goal in their company values, and what it was that inspired them to act this way? Was it because of the company image they would gain, or because of the known environmental damage that is caused through the fashion industry, or maybe they even found some financial benefit of acting sustainably? Perhaps they could enlighten other similar brands to also pursue environmental goals.
NIKO DEFENCE LEAGUE (SHUSH)
October 18, 2020 — 12:19 pm
Using the triple bottom lien will increase their Public relations that’s customers are pleased with which will see them see a increase in their sales revenue. Also with environmental factors such as Global warming and climate change, it’s important to become and use eco-friendly goods which will give Adidas a great reputation and good for their brand image.
LucyStephenson
March 28, 2017 — 9:50 am
Just like Carlene I am also rather curious to understand Adidas’ motivation to become such a hugely sustainable company. Their partnerships like Parlay for the Oceans are extremely important in the development of sustainability efforts that appear credible to the consumer. By having an external partnership company, Adidas can develop and innovate at a much faster rate than other companies who intend to keep organizational processes within the company. I think Adidas did such a good job to develop successful, innovative, unique and resourceful projects that relate to sustainability.