adidas

Reference: page 146

adidas AG operates a German dual-board system: the Executive Board manages the company and the Supervisory Board advises and supervises it, with the two bodies "strictly separated in terms of both members and competencies" (page 146). The Executive Board has four members (25% female, 75% male, meeting the section 76(3a) AktG quota); the Supervisory Board has 16 members (4 female, 12 male), half shareholder and half employee representatives under German co-determination law (page 147).

The Executive Board "systemically assesses risks and opportunities for the company linked with social and environmental factors" (page 146) and oversees a Risk and Opportunity Management System, an Internal Control System, and a Compliance Management System (page 149). A central ESG function reporting to the CEO steers sustainability direction through the Sustainability and ESG Steering Board, and the Audit Committee of the Supervisory Board regularly discusses ESG topics and oversees non-financial reporting (page 150).

Reference: page 151

Each Executive Board member, including the CEO, "is regularly informed about the material impacts, risks and opportunities (IROs), the implementation of due diligence, and the results and effectiveness of policies, actions, metrics and targets" by the senior management teams responsible for managing them, with these topics also forming part of Supervisory Board and Audit Committee meetings (page 151).

Between meetings, the Chairman of the Supervisory Board and the Chairman of the Audit Committee stay in regular contact with the CEO and CFO on strategy, risk and IRO trade-offs. In 2024 adidas conducted a full-scope double materiality assessment, presented to the Audit Committee; in 2025 the company "concluded that a significant update was not necessary" and presented an unchanged list of material matters to the Sustainability and ESG Steering Board (page 151).

Reference: page 151

Executive Board compensation combines a fixed component, an annual Performance Bonus and a share-based Long-Term Incentive Plan (LTIP). Non-financial or ESG criteria can carry up to 20% weighting within the annual Performance Bonus's "other criteria" bucket, alongside 80% financial criteria (page 152).

For the LTIP tranche 2025 (performance period 2025-2027), 20% of the target achievement is measured against non-financial or ESG criteria, split into two explicitly named metrics: reduction of CO2 intensity per product (10% weighting, tied to the 2025 and SBTi-validated 2030/2050 targets) and percentage of female managers (10% weighting, tied to the ambition of 50% women in leadership by 2033) (page 153). Supervisory Board compensation carries no sustainability-linked component (page 153).

Reference: page 154

adidas presents its due diligence disclosures as a cross-reference table mapping the five core due diligence elements to sections of the Sustainability Statement: embedding due diligence in governance, strategy and business model (ESRS 2 SBM-1/2/3 and topical S1-S4 SBM sections); engaging with affected stakeholders (ESRS 2 SBM-2 and each topical standard's impact, risk and opportunity management sections); identifying and assessing adverse impacts (ESRS 2 IRO-1 and each topical standard, plus E4-1 on biodiversity); efforts to mitigate adverse impacts (impact, risk and opportunity management sections); and tracking and communicating effectiveness (metrics and targets sections in each topical standard) (page 154).

Reference: page 154

Controls for ESG-related risks are "assessed and integrated into the internal controls system (ICS)," covering data integrity, accuracy of estimations, timeliness of data, and regulatory compliance, with the Global Internal Controls function providing monitoring, testing and advisory support and regular reporting to the Audit Committee (page 154).

In 2025 the "ICS over ESG priorities & roadmap" was defined, and advisory support is provided during design and build phases of new or evolving processes; for mature processes, walkthroughs evaluate whether key risks are adequately mitigated (page 156). adidas states that "from 2026, ESG-specific internal control testing results will be integrated into this annual reporting to the Audit Committee," indicating the ICS remains a phase-in effort as of FY2025 (page 156).

Reference: page 156

adidas's business model centers on designing and developing performance and lifestyle products, produced through independent manufacturing partners across a multi-tier upstream value chain (Tier 4+ raw material sourcing through Tier 1 assembly), with its own operations covering design, marketing, distribution and direct-to-consumer sales, and downstream wholesale and consumer sales (page 156).

As of the end of 2025, adidas employed approximately 64,938 people worldwide, up from 62,035 in 2024, with the largest regional headcounts in Europe (18,816) and Emerging Markets (13,419) (page 157). The company frames its resilience as depending on flexibility across product design, materials and sourcing, combined with its risk management system (page 156-157).

Reference: page 157

adidas identifies its stakeholders as employees, authorizers (governments, trade associations, shareholders, the Executive Board), business partners, workers in suppliers' factories, human rights defenders, opinion formers, and customers (page 158). Engagement ranges from formal stakeholder dialogue and investor meetings to employee surveys, grievance channels, and multi-stakeholder initiatives such as the ILO's "Better Work" programme and the IOM's migrant-worker protections (page 158-159).

For the double materiality assessment (conducted in 2024, reconfirmed in 2025), adidas used internal teams as proxies for external stakeholder views rather than direct external consultation: "there was no direct involvement of external stakeholders, adidas teams acted as representatives of external stakeholder views and interests" (page 159, cross-referenced from page 161).

Reference: page 160

adidas discloses its material impacts, risks and opportunities (IROs) directly within each topical standard rather than as a single consolidated table at the ESRS 2 level: "Disclosures related to the SBM-3 data points as well as the list of material impacts, risks and opportunities (IROs) are displayed in each topical standard, where applicable" (page 160).

Materiality was set using a double materiality concept, combining impact materiality (severity, scope, irremediability, and for potential impacts, likelihood) and financial materiality (likelihood and magnitude of effects on net income, cash flows, reputation or employee health and safety), each scored 1-5 against a materiality threshold of 3 (page 160-161). Material topics for FY2025 are unchanged from FY2024: ESRS 2, E1-E5, S1-S4 and G1 (page 139).

Reference: page 160

The double materiality assessment (DMA), "conducted in 2024 and reconfirmed in 2025," is based on ESRS 1 section 3 and Application Requirement AR16, using a long-list of sustainability matters scored for both impact materiality and financial materiality on a 1-5 scale against a threshold of 3 (page 160-161). The process ran through workshops with internal experts and senior management, coordinated with the Enterprise Risk Management (ERM) function so that "identified material sustainability matters are reflected in the ERM process and all risks are reflected in the DMA process" (page 161).

Topic-specific processes are detailed per standard: for climate, IROs were derived from historical Scope 1-3 GHG data; for pollution, from supply-chain screening and the WRI Aqueduct tool; for biodiversity, from the ENCORE tool applied to upstream materials (page 163-164). adidas states this DMA methodology is reviewed "every two to three years or in the context of material changes" (page 163).

Reference: page 165

adidas states that "the assessment of the materiality of information did not lead to an exclusion of any disclosure requirement" for its material topics, and directs readers to the ESRS Index (pages 141-143) for the full list of disclosure requirements covered (page 165). Minimum Disclosure Requirements (MDRs) for policies, actions and metrics/targets are applied across topical standards; where no target is set, adidas states it still tracks "the effectiveness of our policies and/or actions through comprehensive processes for progress evaluation," citing compliance-related matters and immature methodologies (e.g., microplastics) as the reasons targets are sometimes absent (page 165-166).

A List of Phased-In Disclosure Requirements (page 166) identifies specific datapoints deferred under ESRS 1 Appendix C and Delegated Regulation (EU) 2025/1416, spanning ESRS 2 SBM-3(48e), E1-9, E2-6, E3-5, E4-6, E5-6, and five S1 datapoints (S1-7, S1-11, S1-12, S1-13, S1-15).

Reference: page 176

In 2025 adidas "reviewed, updated, and publicly released" its new Climate Transition Action Plan (CTAP), led by the Sustainability and ESG team with Product Development & Sourcing, Supply Chain Management and Finance, and endorsed by the Executive Board (page 176). The CTAP targets net-zero Scope 1, 2 and 3 GHG emissions by 2050 and is validated by the Science Based Targets initiative (SBTi) as aligned with a 1.5°C pathway; adidas "confirms that it is not excluded from the EU Paris-Aligned Benchmarks" (page 176).

Interim 2030 targets (against a 2022 baseline) are a 70% reduction in Scope 1 and 2 emissions and a 42% reduction in Scope 3 emissions; adidas achieved a 9% reduction in carbon intensity per product against its 2025 target (page 170-171). Decarbonization levers focus on renewable electricity, energy efficiency, coal phase-out in the supply chain, and lower-carbon materials, financed without disclosed significant CapEx/OpEx allocation (page 165, 170-171).

Back-filled from ESRS 2 IRO-1, where this content is disclosed in the FY2025 report (pages 173-174). This disclosure requirement did not exist under the 2023 ESRS the report was prepared against.

adidas's climate scenario analysis, "finalized in mid-2024," covered the entire value chain across three GHG emission scenarios: low-emission (RCP2.6-SSP126, aligned with a 1.5°C pathway), intermediate (RCP4.5-SSP245) and high-emission (RCP8.5-SSP585, "worst-case or business-as-usual"), each modeled over three timeframes (2030, 2040, 2050) (page 174). The high-emission scenario is explicitly a physical-risk scenario; no separate 1.5°C-aligned transition scenario beyond RCP2.6-SSP126 is named. A "digital twin" of adidas's asset base, sourcing countries and transport routes was used to quantify exposure (page 173).

Key assumptions include current asset base and value chain (excluding sourcing shifts), varying growth rates to 2030 and beyond, and no assumed efficiency or yield improvements for suppliers (page 173-174). The analysis found risks "become more relevant from 2030 onwards" and remain "relatively similar across scenarios until 2050" (page 174). Climate-specific risk identification is also presented under E1-2 (2025 ESRS numbering).

Back-filled from ESRS 2 SBM-3, where this content is disclosed in the FY2025 report (page 175, drawing on the scenario analysis at pages 173-174). This disclosure requirement did not exist under the 2023 ESRS the report was prepared against.

The SBM-3 Resilience Analysis table (page 175) assesses six identified physical and transition risks (property/business disruption, supply chain interruptions, rising material and technology costs, workforce productivity, carbon pricing exposure, stakeholder scrutiny, and consumer preference shifts) against trend and risk-handling actions such as insurance coverage, sourcing diversification, and the climate transition plan. adidas concludes "our business model is sufficiently resilient to climate change for the foreseeable future," citing agility in design, materials and sourcing plus its capital management policy (page 175).

The company caveats that scenario analysis "cannot precisely estimate future costs and investments due to uncertainties in national climate policies and macroeconomic effects" (page 175). Climate-specific resilience content is also presented under E1-3 (2025 ESRS numbering).

Reference: page 178

adidas's climate policies are anchored in the Climate Transition Action Plan (CTAP), published in 2025 and endorsed by the Executive Board, which "aligns our climate strategy with broader strategic, operational, and financial objectives" and is informed by the climate scenario and transition risk assessments (page 176). The CTAP is structured around decarbonization levers for Scope 1/2 emissions in own operations (energy efficiency, renewable electricity, coal phase-out) and Scope 3 in the supply chain (renewable electricity, lower-carbon materials and process innovation) (page 170).

Targets underpinning the policy are SBTi-validated and aligned with a 1.5°C pathway, contributing to net-zero GHG emissions by 2050 across Scope 1, 2 and 3 (page 176). The policy framework covers own operations and the upstream and downstream value chain, consistent with adidas's overall value chain segmentation (page 162).

Reference: page 179

adidas ran a public "COP30 climate fund" style engagement effort and product-footprint calculation actions in 2025, using an in-house tool aligned with ISO 14067:2018 and independently verified to measure GHG emissions per footwear and apparel product, integrated into product creation systems (page 182). Data-accuracy actions include collaborating with suppliers on primary data for fuel, electricity, water, waste and chemical inputs, with third-party assessors verifying documentation (page 182).

Adaptation measures address physical climate risks identified in the SBM-3 Resilience Analysis table, though adidas states plainly that it "has not set specific adaptation targets" - these measures instead contribute to operational resilience (page 182). Effectiveness of decarbonization actions is monitored through tracking and reporting against defined milestones (page 182).

Reference: page 182

adidas's climate targets follow SBTi guidance aligned with a 1.5°C pathway; "offsets and avoided emissions do not count toward our science-based targets" (page 182). Interim 2030 targets against a 2022 baseline are a 70% reduction in Scope 1 and 2 emissions and a 42% reduction in Scope 3 emissions, with a long-term ambition of net-zero GHG emissions (Scope 1, 2 and 3) by 2050, achieved through direct reduction of more than 90% of emissions plus permanent carbon removal for the residual (page 171, 176).

The 2025 carbon-intensity-per-product target (-15% versus 2017, -9% versus 2022) was achieved with a 9% reduction (page 171). Target assumptions include business growth and production forecasts and third-party projections of sourcing-country energy grid evolution; adidas "has not set specific adaptation targets," relying instead on the resilience actions in the SBM-3 table (page 182).

Reference: page 184

adidas discloses energy consumption in its own operations (administrative offices, distribution centers and own retail) broken down by fossil and renewable sources against a 2022 baseline. Reported fossil electricity fell from 244,741 MWh (2024) to 202,263 MWh (2025), against a 291,377 MWh baseline; natural gas consumption was 66,612 MWh in 2025 versus 63,993 MWh in 2024 (page 184). Diesel used in company vehicles fell to 9,320 MWh (2024: 10,434 MWh; baseline: 16,034 MWh) (page 184).

The energy mix table separates fossil electricity, natural gas, heating oil, emergency-generator diesel, and vehicle fuel (diesel and gasoline/petrol), enabling year-on-year and baseline comparison of the shift toward renewable sourcing that underpins the Scope 1 and 2 GHG reductions reported under E1-6.

Reference: page 185

adidas reports Scope 1 emissions of 20,839 tCO2e (2024: 20,844 tCO2e; baseline: 21,856 tCO2e) and Scope 2 market-based emissions of 107,143 tCO2e (2024: 114,970 tCO2e; a 7% reduction; baseline: 142,293 tCO2e), broken down across administrative offices, distribution centers and own retail stores (page 185). GHG emissions intensity per net revenue was 257 tCO2e per million euros in 2025 versus 227 in 2024, a 13% increase, against net sales of EUR 24,811 million (page 188).

Scope 3 accounting follows the GHG Protocol and covers categories including upstream transportation and distribution and business travel; use-of-sold-products emissions (washing, drying, ironing) are calculated but excluded from the total Scope 1-3 figure "in line with our SBTi-validated targets" (page 187). adidas states there were "no significant changes" to the value chain or consolidation scope affecting methodology in 2025 (page 186).

Reference: page 188

adidas states plainly that it "has no GHG removal or storage initiatives in place and does not plan to implement any in the mid-term future," and that it "neither purchases nor plans to purchase carbon credits in the foreseeable future to support its climate strategy or to account for them in its GHG emission calculation" (page 188).

Consistent with SBTi guidance, adidas will only consider purchasing and retiring carbon credits in the long term, and only to neutralize residual GHG emissions "for which reduction actions are not viable," capped at a maximum of 10% against the 2022 baseline year (page 188). This confirms adidas's net-zero pathway relies on direct emissions reduction rather than removals or offsetting in the near term.

Reference: page 188

adidas does not operate an internal carbon-pricing scheme. The company states that its climate strategy milestones are already "driven along milestones with clearly defined accountabilities," with progress "monitored, tracked, and reported regularly," and that embedding the carbon-intensity target into the Executive Board's Long-Term Incentive Plan (LTIP) "serves as an additional steering instrument" for decisions such as material selection and renewable energy investment (page 188).

adidas concludes it is "confident that this approach is sufficient for implementing the needed actions" and therefore does "not consider the introduction of an internal carbon-pricing scheme to add value to the execution of the adidas climate strategy at this point in time" (page 188).

Reference: page 190

adidas's core pollution policies are the Environmental Guidelines and the Policy for the Control and Monitoring of Hazardous Substances, both scoped to Tier 1 and Tier 2 suppliers and owned at SVP Product Development & Sourcing level (page 190). The Environmental Guidelines describe "ways to prevent pollution, manage and control environmental impacts, and avoid depletion of natural resources; includes wastewater and chemical management and adidas restricted substances," referencing ZDHC Wastewater Guidelines, the ZDHC Chemical Management System Technical Guide, ZDHC MRSL and ISO 14001 (page 190).

Suppliers must meet local regulations at minimum, plus the stricter adidas Environmental Guidelines, verified through yearly third-party audits and assessments; non-compliant facilities must follow the mitigation process in the Workplace Standards and Remediation Guide (page 191). adidas has been a ZDHC founding member since 2011 and adopted the ZDHC MRSL industry standard in 2015 (page 191).

Reference: page 192

In 2025 adidas conducted annual environmental compliance checks covering 80% of Tier 1 and Tier 2 facilities by sourcing value, with "no critical findings regarding air, water, or soil pollution" identified, consistent with 2024 (page 193). 85% of Chinese suppliers' facilities disclosed water pollution data to the IPE PRTR platform, and adidas "was ranked number one in 2025 in the IPE CITI rating" based on that disclosure (page 193).

Wastewater testing under ZDHC Wastewater Guidelines is conducted twice yearly by third-party laboratories for 80% of Tier 2 wet-processing suppliers (page 193). Chemical management actions include annual on-site assessments of 80% of Tier 1/Tier 2 chemical-usage facilities and monthly chemical inventory reporting via the BV Ecube platform (page 194). adidas received the Champion Level in the ZDHC "Brands to Zero" program for the third consecutive year (page 189).

Reference: page 195

adidas set two 2025 pollution targets: 90% of Tier 1/Tier 2 suppliers operating on-site effluent plants reaching the ZDHC Wastewater Foundational Level, and 80% of chemical formulations meeting ZDHC MRSL Level 3 (page 189, 195-196). Both targets were achieved: 90% of suppliers met the wastewater target (2024: 86%) and 75% of chemical formulations met the MRSL Level 3 standard (2024: 73%), against the 80% target - a shortfall on the chemical target despite year-on-year improvement (page 195-196).

A new forward-looking commitment introduces facility-level controls for nitrogen and phosphorus discharge at the ZDHC Aspirational Level (page 193). adidas also set a new target in 2025 to limit substances of concern usage to no more than 5% (page 194). No specific target exists yet for microfiber release, as "it is premature to set specific microfiber metrics" given industry-wide methodology gaps (page 197).

Reference: page 200

adidas's water policy commitments center on the Water Management Policy and adidas Environmental Guidelines, applied to Tier 1 and Tier 2 suppliers and "verified annually through independent third-party audits" (page 200-201). Water-quality-specific policy content (wastewater management, microfibers) is addressed within the E2 Pollution chapter rather than duplicated in E3 (page 200-201).

adidas's own operations - offices, retail stores and distribution centers - "do not rely on water for industrial processes," with wastewater directed to public sewer systems and no direct discharge to natural water bodies; the company nonetheless monitors water-related topics through its Integrated Management System, including water-saving technologies where feasible (page 199). Policy scope and stakeholder consideration otherwise mirror the E2-1 pollution policy table (ZDHC standards, SVP Product Development & Sourcing ownership).

Reference: page 201

adidas's water actions, executed by the Sourcing Sustainability team, are designed to "monitor water consumption and withdrawal, improve water discharge, and drive water efficiency" in the upstream value chain (page 201). In 2025 adidas set a new five-year target of 40% water recycling among Tier 1/Tier 2 suppliers by 2030, building on over a decade of monthly water-consumption and flow monitoring at key production sites (page 201).

Technical support includes reverse-osmosis effluent treatment, storm/rainwater harvesting, zero-discharge design and cooling-tower water reuse guidance under the adidas Environmental Guidelines, with third-party experts conducting on-site visits (page 201). adidas also completed Steps 1 and 2 of the Science Based Targets for Nature (SBTN) process in 2025, prioritizing freshwater and land systems for future target-setting (page 214).

Reference: page 203

adidas set a five-year water-intensity reduction target in 2020: cut water intensity at water-intensive Tier 2 production facilities by 40% by 2025 against a 2017 baseline (approximately 0.0157 m3 per US dollar of product output value), requiring at least 5% annual facility-level reduction (page 203). In 2025 adidas "exceeded" this target, achieving a 43% reduction versus a 34% reduction reported in 2024 (page 198, 203).

A new target for 2026 onward is to achieve 40% water recycling at Tier 1 and Tier 2 suppliers by 2030 (page 198). The original target was based on WWF-identified hotspots in the textile supply chain rather than local water-basin conditions; adidas states it plans to align future freshwater targets with Science Based Targets Network (SBTN) requirements to better reflect local basin conditions (page 203).

Reference: page 206

adidas frames its biodiversity approach around the Science Based Targets Network (SBTN) "assess, reduce, and restore" framework and the Accountability Framework, prioritizing deforestation-free supply chains "as man-made deforestation is the biggest driver of terrestrial biodiversity loss globally" (page 206). Transparency is strongest for Tier 1-3 suppliers, but "information about the origin of raw materials (suppliers in Tier 4 and beyond) is not available in a systematic and verified manner" (page 206).

In 2025 adidas completed a biodiversity dependencies and impacts analysis using the ENCORE tool as part of SBTN, finding the largest dependencies and impacts relate to "structure and biotic integrity, followed by water and atmosphere" (page 206). adidas does not currently pursue biodiversity offsets, prioritizing "prevention, responsible sourcing, and avoiding negative impacts" instead, and did not engage Indigenous Peoples and local communities directly in 2025 (page 211).

Reference: page 209

adidas's central biodiversity policy is the Biodiversity and Ecosystems Policy, which "describes our approach to biodiversity and the way to achieve deforestation- and conversion-free supply chains by 2030 or earlier," scoped to upstream and own operations and owned by the SVP Sustainability and ESG (page 209). It sits alongside the Policy for the Control and Monitoring of Hazardous Substances and Standards on animal-derived materials, which "prohibits... sourcing or processing any raw materials from endangered or threatened species" (page 209).

adidas states its biodiversity policies align with the Kunming-Montreal Global Biodiversity Framework and the Science Based Targets Network (page 211), and cross-references related policy content in the E1 (climate), E2 (pollution), E3 (water) and E5 (resource use) chapters (page 211).

Reference: page 211

adidas's 2025 biodiversity actions center on improving traceability of deforestation-risk materials (leather, natural rubber, timber, and cotton), including mapping upstream value chains and joining industry working groups (page 211). The company acknowledges it "did not engage directly with IPLCs [Indigenous Peoples and local communities] in 2025," relying instead on certifications such as FSC, the Better Cotton Initiative and the Organic Cotton Accelerator to incorporate indigenous-rights criteria indirectly (page 211).

Advocacy actions included contributing to Textile Exchange's Regenerative Agriculture Outcome Framework and Round Tables, the Fashion Pact Unlock Project on cotton carbon accounting, and participation at Climate Week NYC's SBTN panel (page 214). adidas completed Steps 1 and 2 of the Science-Based Targets for Nature process in 2025, covering materiality assessment and scoping for freshwater and land systems (page 214).

Reference: page 214

adidas maintains three core biodiversity-linked targets: deforestation- and conversion-free (DCF) supply chains for bovine leather, natural rubber and timber by 2030, aligned with the EU Deforestation Regulation and Kunming-Montreal Global Biodiversity Framework; 100% third-party certified wool (achieved: 100% in 2025, unchanged from 2024); and 100% third-party certified cotton (achieved continuously since end-2018) (page 214-215).

No ecological thresholds, impact allocation, or offsets were applied in target-setting; all three targets are global in scope and allocated to the "avoidance layer of the mitigation hierarchy" (page 216). Progress on the wool and cotton targets is monitored annually via primary supplier data; DCF progress is tracked through supplier self-declared leather volumes by country of origin, assessed for deforestation risk (page 215).

Reference: page 219

adidas's resource-use policy framework is anchored by the Circularity Position Paper, providing "a long-term vision and framework" for the entire value chain, owned by the SVP Sustainability and ESG (page 220). Supporting policies include the Sustainable Ingredient Definition SOP, Responsibly Sourced Materials SOPs (covering synthetics, natural rubber, cotton, man-made cellulosic fibers, and animal-derived materials), and Standards on animal-derived materials (page 220).

Waste-specific policy content sits in the Environmental Guidelines and the dedicated Waste Management Guidelines, which "defines a waste management process to prevent pollution and depletion of natural resources" and references the EU Waste Framework Directive, shared directly with Tier 1/Tier 2 suppliers (page 220). adidas states its circularity approach "will also be influenced by emerging industry standards and regulatory requirements," particularly the EU Strategy for Sustainable and Circular Textiles (page 220).

Reference: page 221

adidas launched its Circularity Position Paper in 2025 as "a living framework" reflecting current status and direction, coordinated by the Sustainability and ESG Team (page 221). Key 2025 actions include rolling out the adoption strategy for textile-to-textile recycled polyester (targeting seasons from 2026), adopting the Responsibly Sourced Cotton SOP, and testing post-consumer rubber waste from France for use in EVA and rubber components (page 221).

By 2023, adidas had already reached 99% recycled polyester (excluding trims), close to its target of full substitution where technically feasible; a further 2024-set target aims for 10% of polyester volume from recycled textile waste by 2030 (page 221). Other 2025 circularity actions include publishing an internal Circularity Position Paper, upskilling suppliers on textile waste segregation, and leading multi-stakeholder initiatives such as T-REX (page 218).

Reference: page 225

adidas's resource-use targets include 10% of polyester from recycled textile waste by 2030 (first textile-to-textile recycled polyester products planned for 2026), and a maintained commitment to 100% recycled polyester wherever technically possible, a target originally set for end-2024 and now sustained going forward (page 225). The company states its recycled-polyester adoption "has been exceeding the level of recycled polyester in global polyester production for several years," certified via the Global Recycled Standard (GRS) and Recycled Claim Standard (RCS) (page 225).

adidas confirms "all of the above targets are voluntary and not mandated by law" (page 227). Durability, repairability and recyclability targets remain undeveloped, as "industry average durability and recyclability metrics and standards are still under development" (page 226).

Reference: page 227

In 2025, 60% of materials used in adidas products and packaging were recycled or sustainably sourced renewable materials, up from 56% in 2024 (page 227). adidas's packaging is 97% paper-based (85% recycled content, both unchanged from 2024), with the remaining 3% plastic packaging now 98% recycled LDPE, up sharply from 83% in 2024 (page 227).

adidas outsources most production and does not purchase materials directly, relying on supplier-reported data for its bill-of-materials tracking of polyester, cotton, polyamide, wool, man-made cellulosic fibers, down and leather; leather consumption is cross-checked via weight-based control checks given product-construction complexity (page 230). The company states it "currently still lacks reliable data" on other resource inflows besides water withdrawal, which is covered under E3 (page 227).

Reference: page 230

adidas states plainly that "there is currently no industry standard that defines circular economy principles for designing apparel and footwear products," and that it will adjust its approach as the EU's Ecodesign for Sustainable Products Regulation (ESPR) and Product Environmental Footprint Category Rules (PEFCR) mature (page 230). Durability, repairability and recyclability are "neither legally defined nor standardized in the apparel and footwear industry yet" (page 230).

For repairability, "most of our apparel products can be repaired by consumers themselves or by a tailor," footwear can be repaired by shoemakers, and adidas has piloted consumer repair services (page 231). For recyclability, adidas states "it is not possible to claim recyclability for our products at this time" given the absence of EU textile-waste treatment infrastructure, though its plastic and paper packaging (including LDPE polybags) is mono-material and fully recyclable (page 231).

Reference: page 220

adidas's Waste Management Guidelines "define a waste management process to prevent pollution and depletion of natural resources," referencing the EU Waste Framework Directive and shared directly with Tier 1/Tier 2 suppliers (page 220). Since 2021, adidas has advanced supply chain waste disposal management, including "upskilling facilities to work with credible waste treatment vendors" and strengthening waste-handling processes in 2025 (page 224).

adidas's 2025 target was 98% of waste from Tier 1 and Tier 2 suppliers diverted from landfills, set in 2021 based on industry benchmarks and aligned to the recycling and waste-to-energy layers of the waste hierarchy. The company achieved a 95% landfill diversion rate among enrolled suppliers in 2025, down slightly from 96% in 2024, which adidas attributes to "the onboarding of new suppliers, which naturally adds complexity" (page 226).

Reference: page 243

adidas's workforce policies are grounded in its stated values (Courage, Ownership, Innovation, Teamplay, Integrity and Respect) and cover a workforce of "180 (2024:175) nationalities" (page 243). Key policies listed include the Rewards Strategy and Compensation Policy, the Global Training Policy, the Health and Safety Policy (aligned to ISO 45001), the Integrated Management System Global Policy, the Fair Play Code of Conduct, Anti-Harassment and Anti-Discrimination Policy, Equal Employment Opportunity policy, and the Human Rights Policy (page 244).

The Human Rights Policy is owned jointly by the Executive Board and CHRO and references the UNGPs, OECD MNE Guidelines, the International Bill of Human Rights and ILO Declaration, applying across own operations and upstream suppliers, licensees and sub-contractors (page 244). Most workforce policies are owned by the Executive Board Member for Global Human Resources, People and Culture and are available to all employees (page 244).

Reference: page 246

adidas engages its workforce through multiple structured channels including HR Business Partners, candidate and hiring-manager experience surveys, exit surveys, the annual Employee Listening Survey (ELS), quarterly townhall meetings led by the CEO, over 30 Employee Resource Groups (ERGs), and Works Councils at local, national and European levels (page 246-247). ELS outcomes and resulting action plans "are shared with the Board," and effectiveness is measured by analyzing individual action plans for trends (page 247).

Employee perspectives feed into the highest levels of decision-making through employee and union representatives on the Supervisory Board (page 246). In Germany, the Executive Board Member Global Human Resources, People and Culture, HR Employee Relations, and the Head of Labor Relations hold senior operational responsibility for workforce engagement (page 247).

Reference: page 247

adidas's primary formal channel is the Fair Play hotline and webform, operated by a third-party provider allowing named, anonymous or semi-anonymous reporting (page 248). Harassment, discrimination and retaliation concerns are reviewed by the HR Employee Relations team, which contacts the reporter "within 48 hours" to schedule an intake call and agree a resolution path (page 248).

Concerns raised via the Fair Play platform are documented in a Case Management System (CMS), introduced in December 2023 and supporting data collection since 2024, enabling adidas to "identify patterns and proactively address emerging issues" (page 248). Effectiveness is assessed through usage metrics (frequency, report types, resolution times), and adidas "publishes statistics on Fair Play" annually; a non-retaliation policy protects reporters (page 248).

Reference: page 249

adidas manages workforce IROs through dedicated functional Centers of Excellence and a global HRBP network, with contributing functions including HR Compensation and Rewards, Labor and Employee Relations, HR Transformation & Solutions, Health & Safety/Environment/Energy (HSEE), and HR Talent (page 249).

On secure employment, adidas "maintains a low proportion of temporary contracts and prioritizing internal mobility for employees impacted by organizational changes," offering alternative internal roles during restructuring (page 249). On working time, adidas offers flexible working models, part-time and full-time contracts, and parental-leave re-entry programs allowing "up to six months" of bonding leave (page 249). Actions addressing health and safety, gender equality, training, disability inclusion, workplace violence, and diversity are detailed across the corresponding metrics sections (S1-9, S1-14, S1-16).

Reference: page 256

adidas's health and safety targets, guided by its H&S Manual and ISO 45001 certification (audited externally, certified by DAkkS), conclude their 2025 cycle in 2026 with new five-year 2030 objectives to follow (page 256). On gender equality, adidas targets 50% women in leadership (Director level and above) by 2033, from a 2023 baseline of 39.6%, tracked monthly and reviewed quarterly, with progress shared with all employees annually during Women's History Month (page 256).

On equal pay, adidas targets an equal pay gap "below 5%," against a current "below 1%" like-for-like result, tracked continuously via HR Rewards, HR Talent and HR Business Partners collaboration and a dedicated internal reporting tool (page 256).

Reference: page 257

adidas reports total headcount of 64,938 employees in 2025 (2024: 62,035), comprising 31,302 male, 33,586 female, 23 "other" and 27 "not disclosed" (page 257). Headcount breakdowns are also provided by specific country (limited to countries with at least 50 employees representing at least 10% of the global workforce), by contract type and gender, by contract type and region, and by terminations, full-time and part-time status (page 257-259).

The employee population is segmented into four types by work: Corporate (functions such as Brand Management, Legal, Sourcing, Technology), Retail (front-line and back-office store roles), Distribution Centers, and Production, alongside non-employee categories including contingent labor and Services Procurement (page 241).

Reference: page 260

adidas's overall collective bargaining coverage rose to 22% in 2025 (2024: 18%), measured as of November 30, 2025 and collected at country level by designated HR leads (page 260). Within the European Economic Area, adidas has significant workforce only in Germany, where coverage stands at 57.6% (2024: 53.3%); adidas changed its membership in the employers' association HDS/L to non-tariff-binding, effective September 2025, with "no direct impact on the employee's terms of employment" (page 260).

Outside the EEA, adidas's significant-workforce countries are China and the United States, "not covered by collective bargaining agreements" (page 260). Collective bargaining rights apply to professional and management (P- and M-level) grades; executive (S-level) employees are governed by individual contracts (page 260).

Reference: page 261

As of December 31, 2025, women held 40.7% of leadership positions at Director level and above globally, comprising 1,377 women (2024: 1,441) and 2,004 men (2024: 2,097) - a decline in absolute female leadership headcount alongside the percentage improvement, which adidas attributes to overall leadership-role reduction (page 261). The proportion of female S-level executives "remained stable" year on year (page 261).

Age distribution of the workforce is 43% under 30 (2024: 42%), 51% aged 30-50 (2024: 51%), and 6% over 50 (2024: 6%) (page 261). These metrics support adidas's target of 50% gender balance in leadership by 2033 from a 2023 baseline of 39.6% (S1-5, page 256).

Reference: page 261

adidas states concisely that "all adidas employees are paid an adequate wage," based primarily on data drawn from its own HR systems and other available data sources (page 261). No further quantitative benchmarking methodology or country-level wage-adequacy assessment detail is provided directly under this heading.

The company's wage-setting mechanics are described in the related "Adequate wages and compensation approach" passage: all employees are assigned a job role under a "global job architecture," each role carries a salary range built from "external market data," and compensation within that range is set "independent of gender or any other diversity criteria" (page 250). Salary positioning, budget allocation and pay-equity investment needs are monitored through management reporting tools, including an annual gender pay snapshot, in consultation with legal and employee-representative bodies (page 250).

Reference: page 262

adidas reports zero fatalities from work-related injuries or ill health in both 2025 and 2024 (page 262). The recordable work-related accident rate (LTIR) was 1.45 in 2025 (151 accidents) against a target of below 2.02, up from 1.37 (143 accidents) in 2024; days lost to accidents, ill health and fatalities rose to 2,474 from 2,366 (page 262).

H&S management system coverage reached 100% for corporate and distribution center employees globally (2024: 96%) and 100% for European own retail (against no 2024 comparator), while global own-retail coverage stood at 17% (2024: 10%) (page 262). Scope covers corporate buildings and DCs of at least 4,500 sqm or 50+ employees, calculated as ISO 45001-covered employees divided by total employees (page 262).

Reference: page 263

adidas discloses two pay-gap measures. Its internal "equal pay gap" (like-for-like comparison by country and grade) is an aggregated below 1.0% in both 2025 and 2024. The ESRS-defined "gender pay gap" (average gross hourly pay difference between all male and female employees) is 12.4% in 2025, down from 13.3% in 2024, which adidas attributes "mainly" to its share of women in leadership positions (page 263).

The annual total remuneration ratio (highest-paid individual to median employee) is 185 in 2025, up from 177 in 2024, which adidas attributes to "adidas' global footprint and the high share of retail-related roles"; the comparable Germany-only ratio is 61 (2024: 63) (page 264).

Reference: page 264

adidas recorded 1,415 incidents filed via Fair Play channels relating to its own workforce in 2025 (2024: 1,246), of which 1,254 (2024: 1,049) fell within S1-17 scope (page 264). Of these, 182 discrimination-related incidents were recorded (2024: 145), comprising 108 harassment reports (2024: 86) and 74 discrimination reports (2024: 59); following investigation, 26 harassment cases (2024: 22) and 21 discrimination cases (2024: 15) were substantiated (page 264).

adidas states there were "no material fines, penalties, compensation for damages, or sanctions imposed on the company in 2025" related to these incidents (page 264). Incidents are tracked through the Case Management System, cross-checked annually against confirmations from market/country legal representatives (page 264).

Reference: page 269

adidas's value-chain worker protections flow from the Human Rights Policy, which "identifies salient human rights risks, including: labor rights, wages, discrimination and harassment, freedom of association and collective bargaining, child labor, forced labor and human trafficking as well as occupational health and safety" (page 269). The adidas Workplace Standards - the supply chain code of conduct - operationalize these commitments through the Human Rights and Environmental Due Diligence (HREDD) system, grounded in the International Bill of Human Rights, ILO Declaration, UNGPs and OECD Guidelines (page 269).

adidas discloses that non-respect of these standards "can occur and have occurred during the reporting period," citing unauthorized subcontracting, fraudulent wage documentation, wage/overtime violations, a health and safety fatality, and gender-based violence, which triggered 21 warning letters to suppliers (17 first-level, 4 second-level) (page 269).

Reference: page 270

adidas engages value chain workers both directly and indirectly to surface impacts on health, safety, well-being and fundamental human and labor rights. Worker perspectives feed into decision-making through continuous engagement with worker representatives (including civil society and trade unions), real-time feedback from WOVO (Workers' Voice) grievance cases, Worker Pulse surveys, and systematic review by the Social & Environmental Affairs (SEA) team, which uses these inputs "to inform sourcing practices, corrective actions, and strategic priorities" (page 270).

adidas also draws on stakeholder groups including investors, analysts, and government agencies, and actively seeks feedback through its annual stakeholder dialogue to improve mitigation efforts for supply chain workers (page 271).

Reference: page 271

In 2025 adidas partnered with 444 Tier 1 manufacturing facilities (2024: 388) and their subcontractors across nearly 40 countries, monitored through a "multi-level monitoring and enforcement system" including audits by adidas-approved external monitors (page 271). Licensees producing under license must adopt the same monitoring approach (page 271).

When an audit finds non-compliance with the Workplace Standards, a corrective action plan is developed per adidas's remediation guidance; effectiveness is verified through follow-up audits, worker satisfaction surveys, and KPIs such as case closure and recurrence rates (page 271). Suppliers who fail to sufficiently remediate within the specified time face non-authorization (new suppliers) or adidas's enforcement process (existing suppliers), applying sanctions under the Enforcement Guidelines (page 271).

Reference: page 273

adidas's value-chain worker protections are led by the Social & Environmental Affairs (SEA) team, "a specialist function within Global Legal," comprising 37 full-time experts based in major sourcing countries, Germany and the United States (page 273). In 2025 adidas "formalized key steps to embed HREDD across our upstream value chain and own operations," expanding into high-risk non-trade procurement and downstream logistics (page 273).

Country-level risk assessments prioritize high-risk locations using public databases and direct stakeholder engagement, while factory-level risk assessment combines regular audits, social impact performance (S-KPI) scoring and factory risk-rating analysis (page 273). A worker survey programme covering 96 facilities in 13 countries in 2025 showed favorable responses on labor-rights awareness rising from 78% in 2020 to nearly 91% in 2025 (page 273).

Reference: page 278

adidas's 2025 HREDD target - full coverage of human rights due diligence systems across operations and the upstream value chain - was met: "We have met our stated 2025 ambition," with the framework aligned to the German Supply Chain Due Diligence Act and extended into prioritized non-trade procurement and select downstream logistics (page 278).

adidas's Social Impact KPI (S-KPI) programme, covering 15 units of measure across health, safety, wages, gender equality and working hours, targeted 90% of core Tier 1 suppliers reaching a 4S rating and 100% reaching 3S. Results fell short: 80% reached 4S or better (2024: 82%) and 96% reached 3S or better (2024: 95%), which adidas attributes to remediation delays and limited supplier capability (page 278).

Reference: page 283

adidas's community protections draw on the Human Rights Policy, a dedicated Human Rights Defenders Policy addressing "instances where Human Rights Defenders (HRDs) activities are repressed by suppliers or others," the Workplace Standards, and the Environmental Guidelines covering water management (page 283). These align with the UNGPs, ILO Declaration, and OECD MNE Guidelines, and adidas has "publicly communicated our commitment to respecting Indigenous Peoples in accordance with the UN Declaration on the Rights of Indigenous Peoples and ILO Convention No. 169," requiring suppliers to obtain free, prior and informed consent (FPIC) for developments near tribal or disputed lands (page 283).

Monitoring of these commitments is anchored in the S2 workers-in-the-value-chain third-party complaints procedure, adidas's primary mechanism for affected-community grievances (page 283).

Reference: page 284

adidas engages affected communities primarily through suppliers as first point of contact, intervening directly "when credible reports or third-party complaints highlight potential or actual negative impacts" (page 284). Engagement particularly targets vulnerable groups including women, migrant workers, Indigenous Peoples and other minorities who may be disproportionately affected.

adidas acknowledges structural limits to this engagement: challenges "stem primarily from such impacts being concentrated in the upper tiers of our supply chain - at the raw material or commodity level - where our visibility and direct engagement are limited" (page 284). The company states it is "committed to strengthening our due diligence and stakeholder engagement practices" to improve coverage of community-related risks.

Reference: page 284

adidas operates dedicated grievance channels for water and sanitation issues and human rights defenders (HRDs), integrated into its HREDD system (page 284). For water and sanitation, suppliers must report community complaints with details on the complainant, timing and nature of the issue, plus investigation outcomes and corrective/preventive measures (page 284). For HRDs, adidas acts directly where partners violate rights and engages governments where state action impedes HRDs.

adidas states it is "committed to being 100% responsive to complaints received and providing timely remedy for any breach of our Human Rights Policy or Workplace Standards," with all cases tracked, outcomes published annually, and a non-retaliation policy protecting complainants (page 284).

Reference: page 285

adidas prevents community harm by enforcing supplier environmental compliance, requiring free, prior and informed consent (FPIC) for the rare land-related developments in its supply chain, and conducting upstream human rights due diligence. adidas states "no severe noncompliances were identified during the reporting year," though "isolated incidents in the supply chain - such as improper waste disposal impacting local communities - were investigated and remediated" (page 285), consistent with the Indonesia waste-disposal case and the 2024 Tier 2 flooding case described in the topic introduction (page 281).

Actions are led by the same 37-person Social & Environmental Affairs (SEA) team responsible for S2 workers-in-the-value-chain, collaborating with the Sourcing Sustainability function on environmental remediation and supplier performance tracking (page 285).

Reference: page 286

adidas states plainly that it has not set time-bound, outcome-oriented targets for affected communities: "Given the very low frequency of cases that are being managed, we currently do not have time-bound, outcome-oriented targets with regard to reducing negative impacts on affected communities or advancing positive impacts on affected communities" (page 286).

In place of numeric targets, effectiveness is tracked through the incident-handling and grievance-mechanism processes described under S3-3 and S3-4: case validation with affected parties, annual review of complaint scope, nature and frequency, and incorporation of stakeholder feedback (page 285-286).

Reference: page 290

adidas's consumer-facing policies address privacy, health and safety, and responsible marketing. The Global Privacy Management Policy "outlines adidas' privacy ambition, principles, and framework and includes adidas' approach to deleting personal data," owned by the Global Privacy Officer and scoped downstream, with third-party supplier expectations for handling personal information (page 290).

Responsible marketing commitments flow from the Fair Play Code of Conduct, which "establishes high ethical standards" including "zero-tolerance against discrimination and harassment" applicable to employees and partners' consumer-facing activities (page 291-292). adidas states it has mechanisms to ensure "all our policies are regularly revisited and updated as necessary" (page 290).

Reference: page 292

The Brand Insights department gathers consumer perspectives through three teams: Consumer Insights (broad consumer behavior via bespoke research and social intelligence tools), Category Insights (product-category-specific needs) and Brand Insights (marketing effectiveness and brand health via funnel surveys) (page 292). Data sources span quantitative structured surveys via third-party agencies, behavioral data from social platforms (Instagram, TikTok, Google) via SaaS partners, and qualitative feedback from focus groups and interviews (page 292).

A separate Brand Partnership Insights function tracks how partners (clubs, athletes, celebrities) are perceived by consumers via online panels, informing decisions on continuing or initiating partnerships (page 292-293).

Reference: page 293

Consumers can raise concerns through national adidas websites (referencing the EU General Product Safety Regulation), direct contact with Customer Service and store staff, the adiComp customer complaint system that "tracks all consumer complaints at point of sales," adidas Key Account Management for wholesaler-routed complaints, and the Fair Play webform/hotline (page 293).

adidas states adiComp "tracks, captures, and handles 100% of incoming consumer complaints and resolutions" (page 293). Privacy-specific requests are managed through an automated individual rights request tool with KPIs and periodic reporting; the customer service provider is "contractually obligated to handle consumer complaints and requests," overseen by an internal due diligence process (page 293).

Reference: page 294

For privacy risk, adidas has integrated "employee training, implementing privacy requirements, adopting security technologies to protect consumer data, as well as conducting audits," with dedicated data protection impact assessments for projects processing consumer data beyond the mandatory GDPR Article 35 assessment (page 294). Where risk cannot be sufficiently mitigated, adidas states it "does not proceed with the processing" (page 294).

Access controls restrict employee and supplier data access "only on a need-to-know basis," supported by supplier due diligence processes and periodic spot checks to confirm mitigation measures remain sufficient as risk levels change (page 294). Responsible-marketing risk management follows the partnership-review process described under S4-2 (page 293).

Reference: page 298

adidas states it has "no distinct target" for privacy compliance, health and safety, or responsible marketing, but is "dedicated to ensuring that our privacy practices meet high standards," pursuing an ambition that "100% of our products are safe," and aiming to keep marketing "align[ed] with ethical standards and consumer expectations" (page 298).

In place of numeric targets, adidas relies on company-wide product safety policies and continuous improvement of privacy policies and procedures, consistent with the general MDR-T approach described at ESRS 2 IRO-2 for topics where "the lack of targets is due to the nature of the matter" (page 165-166, 298).

Reference: page 301

adidas's business conduct framework centers on the Fair Play Code of Conduct and Compliance Policy, both owned by the Executive Board/CCO and referencing OECD Principles of Corporate Governance, the UN Convention against Corruption, and IDW PS 980 (page 301). The Compliance Management System (CMS) is organized around three pillars - Prevent, Detect, Respond - and is "linked to both the company's risk and opportunity management system and our set of internal controls," overseen by the Chief Compliance Officer (page 301-302).

Prevention includes mandatory onboarding compliance training and targeted anti-corruption/anti-bribery training for functions at risk; adidas has identified "trade and non-trade procurement as well as brand partnerships" as particularly exposed to corruption risk (page 302). Executive and Supervisory Board members receive dedicated upskilling on the Fair Play Code and Market Abuse Regulation obligations (page 302).

Reference: page 304

In 2025 adidas worked with 123 independent manufacturing partners (2024: 124) across 279 manufacturing facilities (2024: 283), 78% based in Asia; 65% of partners have worked with adidas for at least ten years and 37% for more than twenty (page 305). The Responsible Sourcing & Purchasing Policy sets out "ten buyer commitments," including fair and on-time payment terms, and adidas has been a Better Buying Institute member since 2019 to collect anonymous supplier feedback (page 305).

Supplier selection and monitoring uses the HREDD framework alongside tools such as EcoVadis sustainability assessments and the Exiger legal compliance tool; non-trade suppliers are also assessed via EcoVadis, both upstream and downstream (page 305-306). Persistent unresolved non-compliance can lead adidas to "terminate the collaboration with the supplier" (page 306).

Reference: page 306

adidas states it "strictly prohibits all acts of corruption and bribery, regardless of the identity or position of the parties involved," applying the CMS's Prevent-Detect-Respond structure to corruption cases specifically (page 306). All employees, "which include the material functions at risk," are covered by 100% completion of Fair Play Code of Conduct onboarding training, supplemented by specialized anti-bribery/anti-corruption training from Regional Compliance Managers and Local Compliance Officers (page 306).

Investigations are conducted with "the highest level of professional skill, ensuring independence," including external resources where required, with built-in controls restricting access for anyone potentially involved, including Compliance team members themselves (page 307). All corruption and bribery cases are reported to the CCO, Executive Board, or Supervisory Board/Audit Committee as appropriate (page 307).

Back-filled from the business conduct chapter, where targets are addressed as part of the MDR-T/GDR-T disclosures rather than as a numbered disclosure requirement. G1-3 became a standalone DR only in the 2025/2026 ESRS.

adidas discloses no separate outcome-oriented business conduct target. The general ESRS 2 MDR statement explains this pattern report-wide: "for sustainability matters where no targets are currently established, we still track the effectiveness of our policies and/or actions through comprehensive processes for progress evaluation," attributing the absence of targets in part to matters that are "purely related to compliance" (page 165-166).

Consistent with MDR-T's effectiveness-tracking limb, the G1 chapter documents concrete tracking: 100% of corporate employees, "which include the material functions at risk," complete Fair Play Code of Conduct onboarding training (page 306); adidas "conduct[s] trend analyses to ensure that we learn from cases" and updates training programmes accordingly (page 307); and G1-6 tracks supplier payment-term compliance annually (94% on-time payment in 2025) (page 307).

Reference: page 307

adidas reports "no convictions and no fines for violation of anti-corruption and anti-bribery laws in the reporting period" (page 307). The company states it is "constantly reviewing our procedures to prevent, detect, and combat allegations or incidents of corruption and bribery, including our procurement process" (page 307).

Data on fines, penalties or convictions related to anti-bribery and anti-corruption violations, as well as legal proceedings for late payments, "has been collected and confirmed by the Local Compliance Officers of each legal entity" (page 307), consistent with the CMS's Respond pillar and its reporting lines to the CCO, Executive Board and Audit Committee described under G1-1 and G1-3.

Reference: page 307

adidas's standard payment term is 60 days from invoice receipt, with 54% of suppliers aligned to these terms in 2025 (2024: 51%); those suppliers were paid on average within 65 days (2024: 68 days), and 94% of payments to them were processed on time (2024: 92%) (page 307, 299). adidas discloses it "do[es] not have the capability to identify small- and medium-sized suppliers in our systems yet," and instead applies the assumption of reporting terms for "more than half of our suppliers" to approximate SME coverage (page 307).

There were "zero cases of legal proceedings for late payments registered in 2025" among the entire supplier group (page 307, 299), consistent with the "0 legal proceedings currently outstanding for late payments" figure presented in the G1 chapter introduction.