adidas

Reference: page 148-154 (Governance: GOV-1).

As a German stock corporation seated in Herzogenaurach, adidas AG operates a dual board system under the German Stock Corporation Act (AktG). The Executive Board independently manages the company, sets objectives, strategy and Group organization, and systematically assesses risks, opportunities and the environmental and social impacts of its activities. The Supervisory Board advises and supervises the Executive Board, including on sustainability, and appoints its members.

Executive Board (4 members, 1 female / 3 male): Bjørn Gulden (CEO, Global Brands), Mathieu Sidokpohou (Global Sales), Harm Ohlmeyer (CFO), Michelle Robertson (Global HR, People and Culture).

Supervisory Board: 16 members (8 shareholder, 8 employee representatives under the Co-Determination Act), chaired by Thomas Rabe; 4 female / 12 male; all shareholder representatives independent (50% of the board). Five committees operate: Steering, General, Audit (chaired by Bodo Uebber), Nomination and Mediation.

A central ESG function reporting to the CEO steers ESG direction and leads the Sustainability Sponsor Board (SSB). The Social and Environmental Affairs (SEA) team monitors supplier social/environmental compliance and human rights. The Audit Committee oversees the internal control and risk management systems and non-financial reporting.

Reference: page 154 (Governance: GOV-2).

Each Executive Board member, including the CEO, is regularly informed by the senior management teams responsible for managing IROs about the material impacts, risks and opportunities and the results and effectiveness of related policies, actions, metrics and targets. These topics are an integral part of Supervisory Board and Audit Committee meetings.

Between meetings, the Chairman of the Supervisory Board and the Chairman of the Audit Committee maintain regular contact with the CEO and CFO on adidas' strategic orientation, business planning, the risk situation, potential trade-offs associated with IROs, control and risk management, and compliance. The Chairman and, where required, the full Supervisory Board are informed about events of fundamental importance, if necessary at short notice.

The Executive Board and the two committee chairs report to the Supervisory Board regularly, extensively and in a timely manner on strategy, planning, business development, financial position, the adequacy and further development of due diligence processes, the internal control and risk management systems, compliance, and special IRO matters.

Throughout 2024, non-financial topics were monitored via the 2023 and 2024 full-scope materiality analysis. A list of material topics derived from IROs (per the topical standards), and a separate list of immaterial topics with a discussion of their immateriality, were presented to the Audit Committee.

Reference: page 155-156 (Governance: GOV-3).

The Supervisory Board determines, implements and reviews the Executive Board compensation system. Executive Board pay comprises fixed compensation plus performance-related components: an annual cash Performance-Bonus and a share-based Long-Term Incentive Plan (LTIP), into which sustainability-related criteria can be integrated.

Performance-Bonus (short-term): at 100% achievement equals 30% of target direct compensation. Financial criteria are weighted 80%; the remaining 20% ('other criteria') may include financial, non-financial or ESG targets. Actual 2024 criteria are disclosed ex-post in the Compensation Report 2024.

LTIP (long-term): at 100% achievement equals 40% of target direct compensation; tranches run a three-year performance period plus a one-year lock-up. Financial criteria are weighted 80% and non-financial/ESG criteria 20%. For the LTIP tranche 2024 (2024-2026) the ESG criteria are:

• Reduction of carbon intensity per product - 10% weighting (derived from the 2025 CO2e intensity target, in line with SBTi-approved 2030/2050 targets)
• Percentage of women in leadership positions - 10% weighting (target 50% by 2033)

Supervisory Board compensation is purely fixed (plus committee and attendance fees) with no sustainability-related performance targets.

Reference: page 157 (Governance: GOV-4).

adidas provides a mapping table showing where the core elements of sustainability due diligence are addressed across the Sustainability Statement:

• Embedding due diligence in governance, strategy and business model - ESRS 2 SBM-1, SBM-2, SBM-3; SBM-2 and SBM-3 also in topical standards S1, S2, S3, S4.
• Engaging with affected stakeholders in all key steps of due diligence - ESRS 2 SBM-2 and in topical standards S1, S2, S3, S4.
• Identifying and assessing adverse impacts - ESRS 2 IRO-1 and in topical standards E1, E2, E3, E5, G1.
• Efforts to mitigate adverse impacts - ESRS 2 MDR-P and MDR-A, with related disclosures in each topical standard.
• Tracking and communicating the effectiveness of these efforts - ESRS 2 MDR-M and MDR-T, with related disclosures in each topical standard.

Reference: page 157-159 (Governance: GOV-5).

adidas is working to assess and integrate controls for ESG reporting into its existing internal control system. The processes for sustainability reporting aim to cover external reporting (integrity of disclosed data and steering KPIs), regulatory compliance, internal and external audits, enterprise risk management, and stakeholder engagement.

The Global Internal Controls team guides the business in identifying risks, addressing process gaps and enhancing controls. Key components include risk and control identification and assessment, monitoring and testing, communication and reporting (integrating ESG risks and control testing results into existing Audit Committee reporting), and continuous improvement.

In 2024, the team assessed process maturity via a gap assessment focused on the ESRS metrics for the 2024 Sustainability Statement, based on the material IROs from the materiality assessment. Main risks identified: gaps in understanding ESRS requirements, inconsistent calculation methodologies, data availability and collection issues, system limitations, and insufficient process documentation. The 2024 ESG Compliance Framework project translated these gaps into requirements; the team follows an 'IC over ESG roadmap' with a phase-in approach. Throughout 2025, adidas plans to provide more detailed information on ESG internal control status to management and the Audit Committee.

Reference: page 159-161 (Strategy: SBM-1).

adidas' purpose is 'Through sport, we have the power to change lives,' and its mission is to be the best sports brand in the world. The business model centers on designing and developing performance and lifestyle footwear and apparel that resonate with consumers, setting trends and creating brand heat.

Workforce: approximately 62,035 employees worldwide at year-end 2024, distributed across Emerging Markets (12,267), Europe (18,470), Greater China (8,718), Japan/South Korea (4,236), Latin America (6,331) and North America (12,013).

Value chain (three parts):

• Upstream - production is carried out with independent manufacturing partners: Tier 4 and beyond (raw material sourcing), Tier 3 and 2 (material manufacturing, spinning, coloring, finishing), and Tier 1 (assembly of adidas products).
• Own operations - product design and development, marketing, sales and a global distribution network (offices, distribution centers, retail stores).
• Downstream - wholesale customers and end consumers.

Sustainability is anchored in a roadmap for 2025 and beyond, including a value-chain decarbonization roadmap, cross-industry circularity initiatives (e.g. 'T-REX', 'Sorting for Circularity'), a commitment to a deforestation-free leather supply chain by 2030, chemical/water management in the supply chain, and high social compliance standards.

Reference: page 161-163 (Strategy: SBM-2).

adidas continuously engages with stakeholder groups to identify the topics most salient to its business, treating this as integral to its human rights and environmental due diligence and to shaping its social and environmental strategies. Key stakeholders include adidas employees; authorizers (governments, trade associations, shareholders, the Executive Board); business partners (suppliers, licensees, service providers); workers in suppliers' factories; human rights defenders (trade unions, community activists); opinion formers (journalists, academics, special interest groups); and customers (professional athletes, distributors, retailers, consumers).

The adidas Stakeholder Relations Guideline sets principles emphasizing the right to be informed, timely and accurate information, actively seeking and acting on input, and willingness to change business plans based on stakeholder views. Engagement ranges from consultation meetings and dialogues with workers, unions, NGOs and suppliers, to investor meetings, employee surveys, grievance channels and multi-stakeholder initiatives.

adidas participates in numerous industry bodies, including the Fair Labor Association, Better Cotton, Leather Working Group, The Fashion Pact and ZDHC. During the materiality assessment, internal teams represented external stakeholder views (e.g. SEA for value chain workers, Investor Relations for investors, HR for employees, Brand for consumers).

Reference: page 163 (Strategy: SBM-3); page 165 (IRO-1, value-chain dependencies); page 170 (IRO-2, phase-in).

adidas presents the detailed SBM-3 data points and the full list of material IROs within each topical standard, rather than in a single consolidated table.

The 2024 double materiality assessment confirmed that all ten topical standards are material to adidas: E1 (climate change), E2 (pollution), E3 (water and marine resources), E4 (biodiversity and ecosystems), E5 (resource use and circular economy), S1 (own workforce), S2 (workers in the value chain), S3 (affected communities), S4 (consumers and end-users) and G1 (business conduct). No material entity-specific matters were identified.

The IRO picture is concentrated in the upstream supply chain. The business model relies on outsourced manufacturing using natural resources such as cotton, leather and rubber plus recycled polyester; production is energy- and labor-intensive. The most significant environmental impacts (GHG emissions, water, biodiversity, waste, chemicals) occur upstream, particularly in raw material production and processing. Social impacts arise at every value chain stage and relate to manufacturing-partner workers, own employees and consumers, with human rights highly material. Governance impacts (compliance, corporate culture) are managed by the legal/compliance function with HR. Under the phase-in exemption, SBM-3 48(e) (anticipated financial effects) is omitted.

Reference: page 164-169 (Impact, risk and opportunity management: IRO-1).

adidas' process follows ESRS 1 section 3 and AR 16. The AR 16 list of sustainability matters, plus existing material topics, formed a long list assessed from both an impact and a financial materiality perspective (double materiality).

Impact materiality: impacts were identified at sub-topic level as actual or potential, positive or negative, by time horizon and value chain level. Negative impacts were scored on severity (scale, scope, irremediability) and likelihood; for potential human rights impacts severity took precedence.

Financial materiality: risks and opportunities were assessed on likelihood combined with the magnitude of short-, medium- or long-term financial effects, aligned with the enterprise risk management (ERM) method.

Both axes used a 1-5 scoring scale with a materiality threshold of 3. The assessment ran through workshops over several months with internal experts and senior management. External stakeholders were not directly involved; internal teams represented their views (e.g. SEA for value chain workers, Investor Relations, HR, Brand).

This was the first time the methodology was applied; adidas plans to revise it annually. Topic-specific processes include E1 (own GHG tool; climate scenarios using IPCC AR6 SSP and NGFS for 2030/2040/2050), E2/E3 (WRI Aqueduct water-risk mapping), E4 (ENCORE and IBAT, focused upstream), E5 (consistent with E4) and G1.

Reference: page 170 (IRO-2); page 143-145 (ESRS Index).

To evaluate the materiality of an IRO, adidas used the 1-5 scoring system described in IRO-1; a matter is immaterial where both impact and financial materiality scored two or below (below the threshold of three). Material information to disclose was then determined per ESRS 1 section 3.2, following the ESRS Disclosure and Application Requirements including the Minimum Disclosure Requirements (MDRs) for policies, actions, metrics and targets, for matters scoring three or higher on either axis.

The Sustainability Statement is structured by an ESRS Index covering ESRS 2 General Disclosures (BP-1, BP-2, GOV-1 to GOV-5, SBM-1 to SBM-3, IRO-1, IRO-2) and all ten material topical standards (E1, E2, E3, E4, E5, S1, S2, S3, S4, G1).

adidas makes use of the phase-in exemptions in ESRS 1 Appendix C. Phased-in disclosures include: ESRS 2 SBM-3 paragraph 48(e) (anticipated financial effects); anticipated financial effects under E1-9, E2-6, E3-5, E4-6 and E5-6; and, for own workforce, S1-7 (non-employee workers), S1-11 (social protection) and S1-12 (percentage of employees with disabilities).

The Sustainability Statement has been prepared in accordance with the ESRS and audited with limited assurance by PricewaterhouseCoopers GmbH (PwC); it also fulfils the German HGB combined non-financial statement requirements.

Reference: page 182

adidas reviewed and updated its climate strategy in 2024, endorsed by the Executive Board. The Supervisory Board made carbon intensity per product an Executive Board LTIP criterion, and the central Sustainability & ESG team reports to the CEO.

GHG targets (SBTi-approved, 1.5C aligned, 2022 baseline): Scope 1 & 2 absolute -70% by 2030; Scope 3 absolute -42% by 2030; carbon intensity per product -9% by 2025; net-zero across Scope 1, 2 and 3 by 2050 (>90% cut plus permanent removals for residuals).

About 87% of total GHG emissions are upstream; own operations around 3%. Baseline moved from 2017 to 2022 after the Reebok divestiture and improved supplier data; the 2030 target rebased from -30% vs 2017 to -42% vs 2022.

Decarbonisation levers: supplier renewable energy and energy efficiency; Tier 1/2 coal phase-out (biomass/natural gas); process electrification; low-carbon material innovation (99% polyester recycled); on-site solar and VPPAs. Funding: largely operational cash flow; own-operations measures funded by adidas, upstream largely by suppliers (indirect via cost of sales); exact CapEx/OpEx to 2030 not yet defined.

Locked-in emissions: use-of-sold-products excluded per SBTi; PP&E/leased-asset locked-in emissions sit within Scope 1 & 2 (<3% of footprint), not material. Progress: total GHG down 20% vs 2022; on track for 2030 Scope 3.

Not present: EU Taxonomy alignment not pursued (not eligible); no precise investment figures.

Reference: page 185

adidas reports a set of climate-related policies and supplier guidelines anchoring its approach to mitigation (CCM) and adaptation (CCA), energy efficiency (EE) and renewable energy (RE).

Third-party standards referenced include the GHG Protocol, SBTi, RE100, ISO energy/environmental/H&S management standards, and the UNFCCC Fashion Charter.

Reference: page 187

Actions are intended to be ongoing without a set completion date.

Scope 1 & 2 (own operations): primary energy-data coverage for own retail rose to 43% globally (offices and DCs at 100%); energy efficiency investments (chiller replacement at Portland office, LED retrofits); new on-site solar at DC Manchester and the Herzogenaurach factory outlet; a VPPA for the USA and Canada signed in 2024 (North America operational 2026; European VPPA operational 2025); 325 facilities under ISO50001 and 76 under ISO14001.

Scope 3 (upstream): suppliers in the Environmental Program sourced 24% of electricity from renewables in 2024 (7% from rooftop solar PV). Coal phase-out: by end-2024 more than half of targeted suppliers had transitioned boilers to lower-carbon fuels. Material innovation: 99% of all polyester (the most widely used material) is recycled; the five highest-impact materials are leather, recycled polyester, EVA, cotton and rubber.

Other levers: air freight just 2% of transport in 2024; 85% of primary cardboard packaging recycled and 83% of polybags made of recycled plastic.

Industry collaboration: supplier SBTi target support (WRI, CDP, WWF, IBCSD); membership of UNFCCC Fashion Charter, Fashion Pact, Fashion for Good and WFSGI. Product footprint tool aligned with ISO 14067:2018 and third-party verified.

Reference: page 191

Targets follow SBTi guidance aligned with the 1.5C pathway; offsets and avoided emissions do not count. Use-of-sold-products emissions are excluded.

Scope 2 figures are market-based; the Scope 3 target boundary includes biogenic emissions/removals from bioenergy feedstocks. The -9% by 2025 carbon intensity target replaces the prior -15% vs 2017 target. Targets were validated with suppliers; no separate climate change adaptation targets are quantified.

Reference: page 191

Energy consumption in own operations (MWh):

Nuclear is measured from 2024 onwards. Rooftop solar PV produced 13,683 MWh in 2024 (2023: 10,697), of which 9,152 MWh was self-consumed and 4,530 MWh fed to the grid.

adidas is in the high-climate-impact sectors 'manufacturing' (textile, apparel, leather, footwear) and 'wholesale and retail trade', so high-impact-sector revenue equals net sales. Energy intensity per net revenue was 21.0 MWh per million in 2024 (2023: 23.1; -9%).

Reference: page 192

GHG emissions reported per the GHG Protocol and ESRS E1-6.

Significant Scope 3 categories (2024): purchased goods and services 4,710,261; upstream transportation and distribution 316,684; business travel 66,332; use of sold products 994,948 (excluded from targets); end-of-life treatment of sold products 155,246.

Scope 1 & 2 calculated on 78% primary data (22% estimated by gross lease area). Ten Scope 3 categories (capital goods, fuel- and energy-related activities, waste, employee commuting, etc.) excluded as insignificant. No emissions under regulated trading schemes; biogenic emissions not reported separately due to immateriality. GHG emissions intensity per net revenue: 227.3 t CO2e per million in 2024 (2023: 238.1; -5%).

Reference: page 195

adidas has no GHG removal or storage initiatives in place and does not plan to implement any in the mid-term future. adidas 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.

Per SBTi guidelines, adidas will only consider purchasing and cancelling carbon credits in the long term to remove or mitigate potential residual GHG emissions for which reduction actions are not viable (capped at a maximum of 10%).

Reference: page 195

adidas does not operate an internal carbon pricing scheme. The various climate strategy measures are driven along milestones with clearly defined accountabilities, monitored and reported regularly. Embedding the carbon intensity target into the Executive Board's LTIP is presented as the steering instrument ensuring climate impact is a relevant factor in decision-making (e.g. material selection, renewable energy investment).

adidas states it does not consider the introduction of an internal carbon pricing scheme as adding value to the execution of its climate strategy at this point in time.

Reference: page 199

adidas frames pollution as an upstream issue tied to its Tier 1 and Tier 2 suppliers. Several policies anchor the approach, all on the corporate website and owned by the SVP Sourcing and Product Operations:

• Environmental Guidelines: Wastewater Discharge set water management and discharge-quality practices (reference ZDHC Wastewater Guideline and ZDHC MRSL).
• Environmental Guidelines: Chemical Management cover restricted substances and their use (reference ZDHC Chemical Management System guideline).
• Environmental Good Practice Guideline and Toolkit covers energy, emissions, water and pollution management.
• Environmental Guidelines: Environmental Management System guide suppliers on an EMS (ISO 14001, ZDHC, ISO 50001).
• adidas Policy for the control and monitoring of hazardous substances prohibits harmful or toxic chemicals and restricts animal-derived materials (references WFSGI, IUCN, ILO, AFIRM).

Suppliers must meet local regulations at minimum; adidas adopts the stricter industry standard where applicable, verified yearly by third-party auditors. A founding ZDHC member since 2011, adidas adopted the ZDHC MRSL in 2015 and joined the Leather Working Group in 2006. On microplastics, adidas notes the textile industry lacks a holistic measurement methodology and contributes to research via The Microfibre Consortium before defining policies, actions and targets.

Reference: page 201

Actions target the material sub-topics of water pollution and substances of concern across the upstream value chain and are designed to be ongoing.

Wastewater actions (2024):

• Annual environmental compliance check covering 80% of Tier 1 and Tier 2 facilities (by sourcing value); no critical air, water or soil pollution findings.
• ZDHC Wastewater Initiative (since 2017): Tier 2 wet-process suppliers (80% by sourcing value) test wastewater twice a year and disclose results on the IPE DETOX or ZDHC Gateway platforms.
• ZDHC-approved labs and consultants run on-site evaluations to improve effluent treatment, covering 80% of wet-processing suppliers.
• An effluent treatment plant evaluation initiative supports the 2025 goal; 85.5% of suppliers reached the ZDHC Wastewater Foundational Level in 2024.

Substances of concern actions:

• Continuous monitoring against the latest ZDHC MRSL; on-site chemical assessments at 80% of relevant suppliers.
• Monthly chemical inventory reporting via a third-party platform (BV Ecube), with facility-level annual MRSL targets.
• Collaboration with ZDHC, AFIRM, ChemSec, Better Cotton and LWG.

Resources: Coordination sits with the Sustainable Sourcing team. No significant additional operating or capital expenditure is required; third-party evaluation, audit and test costs are borne by suppliers and passed back through pricing, raising cost of sales.

Reference: page 203

adidas pursues two pollution targets for Tier 1 and Tier 2 suppliers, both using ZDHC guidelines as the guiding principle and combining precautionary and monitoring approaches.

Quality of wastewater discharge: By 2025, 90% of Tier 1 and Tier 2 suppliers operating on-site effluent plants should attain the ZDHC Wastewater 'Foundational Level' (minimum requirements for testing and managing wastewater so it is safe for the environment). In 2024 the figure reached 85.5% (2023: 84%). Progress is monitored twice a year through ZDHC Wastewater Test Reports from third-party accredited labs, with annual facility-level targets.

Chemical input management: By 2025, 80% of the chemical formulations used in production should meet the ZDHC MRSL Level 3 standard (the highest conformance level), eliminating restricted substances from the supply chain. Supported by the 'adiFormulator' program (established 2023) working with chemical formulators, adidas reached 73.5% of formulations at Level 3 in 2024 (2023: 66.6%). The measurement framework and data-collection system were established in 2021. Performance is evaluated annually and reported monthly by suppliers, verified by third-party auditors.

Pollution-related targets are mandatory for high-environmental-risk suppliers, which are reviewed annually for coverage.

Reference: page 198

adidas assesses pollution of water as a material actual negative impact, located upstream. Impacts on water arise either during agricultural processes (use of chemicals that can compromise freshwater quality) or production processes, mainly in the water-intensive dyeing and tanning phases that risk discharge of chemicals. Microplastics (microfibers) are an actual negative impact across both upstream and downstream phases, generated during the production and use of products; adidas notes the textile industry still lacks a holistic methodology to quantify the extent of this impact.

Management of air, water and soil pollution runs through the annual environmental compliance check (80% of Tier 1 and Tier 2 facilities by sourcing value), which identified no critical air, water or soil pollution findings in 2024, plus wastewater monitoring via the ZDHC Wastewater Initiative and IPE PRTR disclosure in China.

adidas does not disclose the quantitative E2-4 datapoint (amount of each pollutant under the E-PRTR regulation emitted to air, water and soil for own operations); in the ESRS datapoint cross-reference table this datapoint is assessed as immaterial, consistent with the upstream-supplier framing of the impact.

Reference: page 198

adidas reports substances of concern as a material actual negative impact and an associated risk, both upstream. Multiple chemicals used across Tier 1, Tier 2 and raw material production are classified as substances of concern; they are difficult to substitute because alternatives are scarce, costly or hard to manage, and their use leads to adverse environmental impacts. The related risk covers stricter regulation in sourcing or importing countries (higher supplier operating costs and market-access challenges) and increased traceability and transparency requirements (higher operating costs for adidas).

Management: Since 2015 adidas applies the ZDHC MRSL (Manufacturing Restricted Substances List), which prohibits intentional use of listed substances in textiles, leather, rubber, foam, adhesives and trims. It supplements this with its own 'Policy for the control and monitoring of hazardous substances', going beyond legal requirements for consumer safety. Suppliers report chemical inventory monthly via the BV Ecube platform, and on-site chemical assessments cover 80% of relevant Tier 1 and Tier 2 suppliers. adidas collaborates with ZDHC, AFIRM and ChemSec.

Progress is tracked through the chemical input management target: 73.5% of formulations met ZDHC MRSL Level 3 in 2024 (2023: 66.6%), toward an 80% target by 2025. adidas received the ZDHC 'Brands to Zero' Champion Level for the second consecutive year in 2024.

Reference: page 207

adidas frames water and marine resources around upstream manufacturing. Two policies (owned by the SVP Sourcing and Product Operations, on the corporate website) govern the topic:

• Environmental Guidelines: Water Conservation and Access to Water and Wastewater Management set expectations for suppliers to manage wastewater discharge and run water conservation programs that cut freshwater intake and improve efficiency. References include WHO drinking water quality guidelines (3rd edition), ZDHC Wastewater Guidelines (v2.1) and ZDHC MRSL (v2); stakeholders considered include suppliers, workers, affected communities and ZDHC.
• Environmental Good Practice Guideline and Toolkit describes water-saving technologies and pollution prevention.

The guidelines cover water withdrawals, consumption and discharges upstream. Measurable targets apply to water-intensive suppliers (mostly Tier 2); Tier 1 suppliers self-govern. Minimum requirements include lawful, authority-approved water abstraction, a ban on illegal intake, responsible extraction, and strong encouragement of recycling and reuse (rainwater harvesting, zero-discharge design, cooling-tower blowdown reuse). Product design favors preferred materials such as Leather Working Group-certified leather and certified cotton (organic, recycled, Better Cotton). Supplier performance is evaluated annually by third-party auditors; water-risk-area consideration is not yet embedded due to measurement complexity.

Reference: page 208

Actions address water management holistically, monitoring consumption and withdrawal, improving discharge and driving efficiency in the upstream value chain; all are designed to be ongoing and support the water intensity reduction target.

2024 actions:

• Since 2015, monthly monitoring of water consumption and flow at key production facilities via submetering and the adidas reporting platform; anomalies (leakage, abnormal usage) trigger immediate action and technical advice, including recycling cooling water and installing reverse osmosis for effluent treatment. Additional high-water-use Tier 2 suppliers were added to the program in 2024.
• All actions and reported data verified by third-party experts who also advise on water-saving practices.
• Yearly review cycles evaluate the Tier 2 program; third-party auditors verify facilities' water management and conduct annual inspections and data checks at Tier 1 and Tier 2 suppliers.
• Stakeholder engagement via webinars and supplier summits; continued work with Better Cotton and the Leather Working Group.
• In 2024, adidas carried out a water risk mapping (including high-water-stress areas) for suppliers in the program, based on WRI Aqueduct 4.0, to inform a future mitigation and adaptation plan.

Wastewater actions are disclosed under E2 Pollution. Execution sits with the Sustainable Sourcing team; no significant additional operating or capital expenditure is needed for the foreseeable future.

Reference: page 209

adidas has a five-year water intensity reduction target for its global supply chain, focused on water-intensive Tier 2 production facilities. The target is voluntary (not legally required) and addresses water quantity and quality from intensive water-use manufacturing; it is not yet linked to a specific water risk level. It requires suppliers to improve water efficiency yearly (e.g., higher recycling rates, lower freshwater intake).

Target: By 2025, reduce overall water intensity at water-intensive Tier 2 facilities by 40% against a 2017 baseline (baseline value approximately 0.0157 m3/US$, measured as m3 per total product output value in US dollars). Individual facilities are expected to cut intensity by at least 5% each year; geographical location is not factored into the target. adidas aims to align future targets with the Science Based Targets Network (SBTN) for nature.

Performance: In 2024, adidas achieved a 34.5% reduction in water intensity (2023: 32.9%), tracked and verified annually from primary consumption data reported by each facility. Water quality targets are covered under E2 Pollution and plastic-reduction targets under E5.

Reference: page 210

adidas discloses water consumption as an entity-specific metric framed around its water-intensive Tier 2 suppliers rather than own operations. The material impacts are upstream actual negative impacts on water consumption, water withdrawal and water discharges, arising mainly during agricultural raw material production (cotton cultivation, cattle farming for leather) and water-intensive production processes such as dyeing and tanning; severe cases could reduce water availability for local communities.

2024 metric: Tier 2 suppliers with water-intensive production facilities achieved a 34.5% reduction in water intensity (2023: 32.9%) versus the 2017 baseline. Water intensity is calculated as the volume of water used per facility (in cubic meters) divided by product output value (in US dollars). Data covers a twelve-month period (January to December), is reported by each supplier directly to the adidas system, and is validated by a third-party auditor before use in the KPI.

adidas does not disclose the standard ESRS E3-4 quantitative datapoint of total water consumption in m3 per net revenue on own operations; in the ESRS datapoint cross-reference table this datapoint is assessed as immaterial, consistent with the upstream-supplier focus. Wastewater-discharge metrics are reported under E2 Pollution.

Reference: page 213

Managing biodiversity impacts along the value chain is a focus of adidas' sustainability work, guided by SBTN science-based targets for nature and the Accountability Framework (assess, reduce, restore). adidas has transparency over Tier 1, Tier 2 and part of Tier 3 suppliers, but raw-material origin (Tier 4 and beyond) is not yet systematically verified. As deforestation is the biggest driver of terrestrial biodiversity loss, deforestation-free supply chains are the priority. A biodiversity dependencies and impacts analysis (2023/2024) used the ENCORE tool; the biggest dependencies and impacts relate to structure and biotic integrity, followed by water and atmosphere. A proximity assessment used IBAT (BirdLife International). adidas concludes biodiversity impacts and risks are concentrated upstream and become more relevant from 2030 onward (long term), and considers the business model sufficiently resilient in the short and medium term. adidas does not present a stand-alone biodiversity transition plan; a Biodiversity and Ecosystems Policy is under development.

Reference: page 216

adidas anchors its biodiversity approach in multiple policies. Its Biodiversity Strategy describes the approach to achieve deforestation- and conversion-free (DCF) supply chains by 2030 or earlier, including human rights, aligned with decarbonization goals; it focuses on the upstream supply chain and materials linked to deforestation risk (leather, natural rubber, timber). A Biodiversity and Ecosystems Policy is under development as an umbrella for functional policies. The adidas Policy for the control and monitoring of hazardous substances restricts use of animal-derived materials and states adidas does not source or process raw materials from endangered or threatened species. Standards on Animal-Derived Materials prohibit specific materials (e.g., exotic-animal hides, angora wool) and set minimum standards for leather, down and wool. adidas aims to phase out virgin fossil-based materials, replacing them with recycled or bio-based feedstocks (high-risk deforestation feedstocks excluded or certified). Traceability is covered by the Sustainable Product Tracing Methods SOP. Senior responsibility sits with SVP Sustainability and ESG / SVP Sourcing and Product Operations.

Reference: page 218

In 2024, actions focused on transparency and traceability by mapping upstream value chains of key materials, prioritizing deforestation-risk materials (leather, natural rubber, timber-derived) followed by cotton. Leather: completed supply chain mapping to slaughterhouse (in some cases farm level), engaged meat-industry and indirect suppliers, contributed to Textile Exchange DCF and LWG chain-of-custody working groups, sponsored COTI in Para, Brazil; decided to stop purchasing kangaroo leather. Natural rubber: completed partial mapping of Tier 3 suppliers in Southeast Asia, with a further exercise in 2025. Timber-derived materials (MMCFs and paper packaging): joined Canopy Planet's CanopyStyle and Pack4Good, began MMCF supply chain mapping, identified Tier 4 fiber producers. Cotton: requested supplier self-declarations on sourcing countries, signed up for Traceable Better Cotton and US Cotton Trust Protocol. adidas joined SBTN's Corporate Engagement Program and held a November 2024 stakeholder consultation on its draft Biodiversity and Ecosystems Policy. No significant additional OpEx or CapEx is needed for now; biodiversity offsets are not part of its plans.

Reference: page 220

Four global targets support the biodiversity strategy, all allocated to the avoidance layer of the mitigation hierarchy and focused on the upstream value chain:

• Deforestation- and conversion-free (DCF) bovine leather supply chain by 2030, covering all bovine leather sourced (excluding recycled leather and leather trims); informed by EUDR and the EU biodiversity strategy for 2030. Roadmaps for natural rubber and timber-derived materials are under development.
• 100% third-party certified wool by 2024, covering all sheep wool (excluding recycled wool); 100% achieved in 2024.
• Zero sourcing and processing of raw materials from endangered and/or threatened species (IUCN Red List), covering the entire volume of materials sourced without exception; ongoing, met in 2024.
• 100% third-party certified cotton (organic, recycled, other standards), achieved since end of 2018; covers total cotton sourced globally (2024 performance data reported in E5-4).

No ecological thresholds or offsets were applied.

Reference: page 225

adidas governs resource use and circular economy through policies, guidelines and SOPs across the value chain, abbreviated as RI (resource inflows), RO (resource outflows) and W (waste). The key priority is reducing dependency on virgin fossil-based materials by increasing recycled materials and sustainably sourced renewable materials. Policies include: Circularity Strategy (RI/RO/W; references UNEP and Ellen MacArthur Foundation), Sustainable Product Policy, Sustainable Ingredient and Concept Standard Definition SOP (aligned with Textile Exchange Preferred Fiber and Materials Matrix), Seasonal Product Creation Guidelines, Recycled Polyester SOP (GRS, Recycled Content Standard), Responsibly Sourced Biobased Synthetics SOP, Animal-Derived Materials Standard (rules out endangered/threatened species), Responsibly Sourced Wool SOP (RWS), Responsibly Sourced Down SOP (RDS), Guidance on Biodegradation, Environmental Guidelines (W), Environmental Good Practice Guide and Toolkit (W), Waste Management Guidelines (W; EU Waste Framework Directive), and Waste Co-processing Partners Due Diligence Guideline (W). Guidance on circular product design and product end of life is still under development.

Reference: page 227

Resource use actions: improving product and material data tracking via IT investment; transitioning to recycled polyester (the most-used material, 99% recycled in 2023); a new aim of 10% of polyester from recycled textile waste by 2030 (first products planned for 2026); 100% third-party certified cotton since 2018, adding US Cotton Trust Protocol; slightly increasing recycled content in EVA and rubber and working toward certified natural rubber (Responsibly Sourced Cotton and Natural Rubber SOPs expected 2025). Animal-derived materials are 5.7% of total materials used in 2024; 99% of leather volume is from LWG-audited facilities; all down is RDS-certified and all wool RWS-certified since FW24. Circular economy: Made To Be Remade (MTBR) recyclability initiative (Futurecraft.Loop, 2019). Circular ecosystem engagement via EU-funded T-REX (adidas as coordinator), the New Cotton Project (completed 2024), and Fashion for Good. Circular services pilots covered repair ('Choose to Repair'), rental and take-back. Waste management aligns with the Waste Management Guidelines and Waste Co-processing Partners Due Diligence Guideline; a GIZ FABRIC collaboration in Cambodia collected about 3,000 tons of cotton textile waste. No significant additional OpEx or CapEx is expected.

Reference: page 232

Targets (all voluntary, not legally mandated):

• 90% of articles to be sustainable by 2025: defined via environmentally preferred material content thresholds by article weight (apparel at least 70%, accessories and gear at least 50%, footwear at least 20%). In 2023 almost eight out of ten articles qualified; adidas decided not to apply the target for 2024 and 2025 but to keep monitoring against the 2023 level.
• Use 100% recycled polyester wherever technically possible by end of 2024: applies to all polyester; 99% achieved in 2024; certified via GRS and RCS.
• 10% of polyester from recycled textile waste by 2030: applies to all polyester; first textile-to-textile products planned for 2026.
• 100% third-party certified cotton: met again in 2024 (data in E5-4).
• DCF bovine leather supply chain by 2030 (cross-referenced to E4).
• 98% of waste diverted from landfills at Tier 1 and Tier 2 suppliers by 2025: 96.2% diversion achieved among enrolled suppliers in 2024.

Reference: page 234

adidas outsources almost 100% of production and tracks materials via supplier data. Total materials used 2024: 588,142 tons (products 456,227 tons / 77.6%; packaging 131,915 tons / 22.4%); thereof total recycled materials 249,743 tons (42.7%) and total biological materials 219,020 tons (37.4%). Named product material categories with tonnage, share of total, and sustainable/recycled share: Polyester 130,365 t (28.6%; recycled polyester 129,388 t / 99.3%); Rubber 78,610 t (17.2%; recycled rubber 1,428 t / 1.8%, natural rubber 9,373 t / 11.9%); Cotton 54,883 t (12.0%; Better Cotton 54,257 t / 98.9%, US Cotton Trust Protocol 82 t, organic 495 t, recycled 48 t); EVA 48,931 t (10.7%; recycled 2,538 t / 5.2%, biobased 401 t / 0.8%); Silica 33,243 t (7.3%); Leather 24,691 t (5.4%; third-party certified 24,662 t / 99.9%); Polyurethane (PU) 24,478 t (5.4%); Polyamide (PA) 18,133 t (4.0%; recycled 4,946 t / 27.3%); TPU 17,026 t (3.7%); TPR/TPE 6,597 t (1.5%); Other synthetic materials 17,395 t (3.8%); Other natural materials (wool, down, MMCFs) 1,874 t (0.4%; certified 59.5%). Packaging: paper-based 128,174 t (97.2%; recycled 84.5%); LDPE plastic 3,741 t (2.8%; recycled 82.5%). Other resource inflows lack reliable data.

Reference: page 237

There is currently no industry standard clarifying circular economy principles for designing apparel and footwear, so adidas follows a best-effort approach pending ESPR and similar regulations. Durability, repairability and recyclability are not yet legally defined or standardized for the industry. Durability: no industry average metrics exist; adidas continuously tests product quality and performance (ISO and other standards). Repairability: no standard metric; most apparel can be repaired by consumers or tailors and footwear by shoemakers, though some technical products may not be repairable; consumer repair services have been piloted. Recyclability: recycling technology is early-stage and adidas cannot claim recyclability for its products; under the Waste Framework Directive textiles must be collected separately in all EU countries from January 1, 2025, and adidas expects those streams to contain the materials disclosed in E5-4. Packaging is monomaterial and fully recyclable (paper packaging and LDPE polybags). No quantified product resource-outflow (durability/recyclability) metrics are provided.

Reference: page 230

Waste actions are governed by the Waste Management Guidelines and the Waste Co-processing Partners Due Diligence Guideline, applying a waste management hierarchy. Suppliers must segregate and treat post-industrial waste, with waste incineration at production sites prohibited; suppliers in the Environmental Program record and track waste in adidas' digital platform and send it for recycling, reuse or waste-to-energy. Since 2021 the waste diversion program has expanded across Tier 1 and Tier 2 suppliers globally, with a co-processing program in key sourcing regions converting non-recyclable manufacturing waste to energy. The target is 98% of waste diverted from landfills at Tier 1 and Tier 2 suppliers by 2025; a 96.2% diversion rate was achieved among enrolled suppliers in 2024. A GIZ FABRIC collaboration in Cambodia collected around 3,000 tons of cotton textile waste from 17 of 21 facilities. adidas does not present a quantitative total waste-tonnage or hazardous/non-hazardous waste breakdown; reporting is expressed via the diversion rate.

Reference: page 252 (S1-1 Policies - working conditions); page 253 (equal treatment); page 254 (health and safety); page 255 (Human Rights Policy); page 257 (major changes in 2024).

adidas has adopted multiple policies anchoring its approach to own workforce, grouped into working conditions, equal treatment, and health and safety/anti-harassment. The Executive Board, overseen by the Supervisory Board, sets direction; operational ownership sits with the Executive Board Member for Global HR, People and Culture.

Working conditions: company agreements on 'Flexitime', 'Mobile/Off-Campus Working' and 'Working from Elsewhere'; Compensation Policy (global; annual salary reviews); Core benefits agreement (Germany); Global Training Policy (excludes non-employees); HR Planning and Job Security agreement.

Equal treatment: Fair Play Code of Conduct; Anti-Harassment and Anti-Discrimination Policy; Equal Employment Opportunity policy (prohibit discrimination on race, color, creed, origin, sex, orientation, age, disability).

Health, safety and human rights: Health and Safety Policy (ISO 45001); Integrated Management System Global Policy (ISO 45001, 14001, 50001); Human Rights Policy (aligned to UNGPs, OECD MNE Guidelines, International Bill of Human Rights and ILO Declaration; covers freedom of association and no forced/child labor).

In 2024 the Anti-Harassment/Anti-Discrimination Policy and Human Rights Policy underwent major changes (approver/signatory and wording).

Reference: page 257 (S1-2 Processes for engaging with own workers and workers' representatives); pages 258-261 (engagement methods, works councils).

adidas engages directly with its own workforce and with workers' representatives, integrating feedback into strategic and operational decisions. Employee and union representatives sit on adidas' Supervisory Board, and the Labor Director is a member of the Executive Board.

General engagement mechanisms:

• HR Business Partners (HRBPs) - ongoing local point of contact for all employees; responsible: Executive Board member for HR
• Annual Employee Listening Survey (ELS) - team-centered; outcomes/action plans presented to the Board; responsible: SVP HR Strategy & Excellence
• Candidate experience and Exit surveys (corporate) - reviewed quarterly
• Quarterly town halls - hosted from Herzogenaurach, entire global workforce invited; responsible: CEO
• Over 30 Employee Resource Groups (ERGs) covering ethnicity, gender, LGBTQIA+, faith, disability, caregivers; responsible: SVP Global DEI

Workers' representatives: works councils operate at local, country and European levels. The Labor Relations team is the legal interface; in Germany the Herzogenaurach Site HR Lead, Labor Director and Head of Labor Relations hold senior responsibility. A diversity dimensions survey (gender, race/ethnicity, LGBTQIA+, abilities) informs DEI strategy, with focused engagement for vulnerable and underrepresented groups.

Reference: page 262 (S1-3 Processes to remediate negative impacts and channels to raise concerns); pages 263-264 (channels, Fair Play hotline, non-retaliation).

adidas remediates negative impacts using coaching, mediation, intervention and investigation. All HRBPs are trained on these tools; the Employee Relations team or relevant HRBP selects the appropriate conflict resolution tool. A Case Management System (CMS), introduced in December 2023, records each case and supports trend analysis.

CMS process: intake -> investigation -> outcome (report with conclusion and recommended measures) -> documentation -> aftercare.

Channels available to all employees regardless of position or location:

• Line Manager (adidas)
• HR Business Partner (adidas)
• Employee Relations team (adidas)
• Works Council (where legally required)
• Fair Play hotline (external vendor; anonymous)
• Fair Play web form (external vendor; anonymous)
• Compliance team (adidas)

Reporting can be by name, anonymously or semi-anonymously. Within 48 hours of a concern, Employee Relations contacts the reporter to schedule an intake call. Channels are communicated at onboarding, on SharePoint, the corporate website, and via posters in stores and DCs. A non-retaliation policy protects those who raise concerns. adidas plans to introduce feedback surveys, audits and KPIs in 2026 to improve the grievance mechanism.

Reference: pages 264-268 (S1-4 Taking action on material impacts); pages 269-273 (actions and tracking); page 274 (resources allocated).

adidas runs numerous ongoing, mostly global actions across its material own-workforce topics.

Health and safety: risk assessments at all locations at least every two years or after an accident; regular H&S training; investigation of all accidents; expanded 2024 mental-health and well-being offerings.

Gender equality and equal pay: building on a 2021 pilot pay gap analysis in seven locations, adidas adjusts unjustified gaps, tracks women-in-leadership targets and runs an 'ElevateHer' sponsorship program.

Training and skills: LinkedIn Learning, Udemy, DataCamp; mentoring; leadership development experiences (PLE, MDE, DDE, EDE), Functional Academies and the GHIPO program.

Secure employment: internal redeployment in reorganizations (with the Works Council in Germany); fair termination notice periods.

Work-life balance: part-/full-time contracts, remote work up to 40%, ten 'Working from Elsewhere' days, and family/parental leave (e.g., six months parental bonding in the US; 24 paid weeks for mothers in Latin America).

Diversity and disability inclusion: Leading with Inclusion Program (160+ executives, 300+ M1/M2 leaders trained in 2024), DEI Executive Council, Disability Hiring project.

Resources span HRBP functions, Compensation/Rewards, Benefits, Workplaces, Labor Relations (Germany) and DEI Global.

Reference: pages 274-276 (S1-5 Targets - women in leadership and health and safety); pages 277-278 (equal pay gap target).

Women in leadership (gender equality):

• Global target: 50% women in leadership (Director / M2 level and above) by 2033, from a 2023 baseline of 39.6%. Status at 31 Dec 2024: 40.7% (up from 39.6% in 2023).
• adidas AG Germany (FuePoG II): 40% female representation at both the first and second management levels below the Executive Board by 2025 (2023 baselines: 35.5% and 37.4%). Status 2024: first level 36.1% (13 women; 23 men); second level 38.2% (92 women; 149 men).

Health and safety: From 2024 adidas reports under ESRS rather than OHSAS, adjusting KPIs and the LTIR calculation (per 1,000,000 working hours).

• Lost Time Incident Rate (LTIR) target <2.0 for 2024-2025 (previously <1.3 under OHSAS, 2020 baseline)
• Zero fatalities and zero cases of work-related ill health
• 100% coverage by an audited/certified H&S management system for corporate buildings/DCs >4,500 sqm or >50 headcount by end 2025; internal target to roll out ISO 45001 to 100% of European own retail stores and showrooms by 2025

Equal pay gap: ambition to identify, monitor and close gender pay gaps globally. The current overall equal pay gap is below 1%; defined target level is less than 5%. Scope: global, all countries. Methodology: aggregated like-for-like comparison (same country, grade and job family). 2024 is the first reporting year.

Reference: pages 277-280 (S1-6 Characteristics of the undertaking's employees, contract type, region, terminations); page 243 (key metrics overview).

adidas reports 62,035 employees (headcount) as of 31 December 2024, drawn from the central HR system. Gender split: female 51% / male 49%; 175 nationalities.

By gender (headcount):

By region (headcount): Emerging Markets 12,267; Europe 18,470; Greater China 8,718; Japan/South Korea 4,236; Latin America 6,331; North America 12,013.

Countries with 50+ employees representing >=10% of total (by gender): China 5,311 F / 2,355 M; Germany 4,472 F / 3,947 M (4 not disclosed); USA 4,775 F / 5,529 M (8 not disclosed).

Turnover: 17,711 leavers in 2024, an overall turnover rate of 30% (terminations / average headcount x 100). By area: Retail 13,704; Corporate 2,564; Distribution centers 1,384; Production 59.

Reference: pages 281-282 (S1-8 Collective bargaining coverage and social dialogue).

The percentage of adidas employees covered by collective bargaining agreements is 18% globally. As there is no centralized tool, data is collected via an ESRS-based questionnaire; local HR leads report to the HR Strategy & Excellence team, with annual review from Q4 2024 onward.

EEA: Germany is the only country with significant employment in the EEA, so EEA coverage corresponds to Germany at 53.3%. For the remaining roughly 50% of employees under the German co-determination act, agreements with local works councils are in place. Collective bargaining rights apply to all professional and management (P- and M-level) employees; executive (S-level) employees are covered by individual contractual regulations.

Non-EEA: Of countries with significant workforce (>=50 employees and >=10% of total), China and the USA are not covered by collective bargaining agreements.

adidas has concluded a company agreement with the European Works Council. The Labor Relations team supports Germany and the European Works Council; local entities are accountable for statutory compliance.

Reference: page 282 (S1-9 Diversity metrics).

Gender distribution at top management: 40.7% women in leadership (Director level and above) in 2024 - 1,441 women and 2,097 men. Top management comprises executive (VP and SVP level) and middle management (Director and Senior Director level).

For adidas Germany, under the German Second Leadership Positions Act (FuePoG II), as of 31 December 2024:

• First management level below the Executive Board (Board -1): 36.1% women
• Second management level below the Executive Board (Board -2): 38.2% women

Distribution of employees by age group:

Reference: page 282 (S1-10 Adequate wages).

adidas states that all adidas employees are paid an adequate wage. The assessment mainly uses data from adidas' own HR systems, complemented by data from an external data provider and other publicly available data sources where relevant.

Reference: pages 282-283 (S1-14 Health and safety metrics).

adidas' infrastructure, assets and operations are aligned with ISO 45001 (certified via DAkkS, audited externally).

Coverage by the health and safety management system (2024):

• Corporate and distribution center employees: 96%
• Own retail employees (ISO 45001): 10% globally
• Scope defined by locations >=4,500 sqm or >=50 employees (corporate buildings and DCs) plus 100% of European own retail stores and showrooms

Incident metrics (corporate, distribution centers and retail, 2024):

The accident rate and LTIR are calculated per 1,000,000 working hours and exclude business travel, commuting, sport and event accidents.

Reference: pages 283-284 (S1-16 Remuneration metrics - pay gap and total remuneration).

Equal pay gap (like-for-like): A like-for-like comparison of employees in the same country and grade, weighted across all calculated pay gaps, yields an overall aggregated equal pay gap below 1.0%.

Gender pay gap (ESRS formula): Using the ESRS definition - (average gross hourly pay of men minus average gross hourly pay of women) / average gross hourly pay of men x 100 - across all functions, countries and grades, the resulting gender pay gap is 13.3%, mainly influenced by the share of women in leadership positions and expected to decline as that share grows. Based on hourly contractual/target Total Direct Compensation (TDC) data as of 31 December 2024, all active employees included.

Total remuneration (annual total remuneration ratio): The ratio of the highest-paid individual's annual total remuneration to the median employee's annual total remuneration (excluding the highest-paid individual) is 177. The ratio is heavily influenced by adidas' global footprint and the high share of retail roles; comparing to the average among employees in Germany, the ratio is 63. Median compensation is based on annual contractual/target TDC (base pay, target STI, target LTI) projected to full-time, as of 31 December 2024.

Reference: page 285 (S1-17 Incidents, complaints, and severe human rights impacts).

For 2024, regarding incidents of discrimination including harassment:

• 86 cases of harassment (all forms) reported for investigation
• 59 cases of discrimination (all forms) reported for investigation
• Of these, 15 incidents of discrimination and 22 incidents of harassment were confirmed within adidas' own operations, managed under the Consequence Management Policy

Fair Play channels (2024): 1,246 incidents were filed relating to the own workforce, of which 1,049 incidents (including harassment and discrimination) relate to the social factor definition of the standard.

In 2024 there were no material fines, penalties, compensation for damages, or sanctions imposed on the company. Incidents, investigations and outcomes are maintained in the Case Management System (CMS); market/country legal representatives annually confirm any fines, sanctions or compensation paid, cross-checked against CMS data.

Reference: page 292

adidas maintains a comprehensive policy framework for value chain workers, grounded in the International Bill of Human Rights, the ILO Declaration on Fundamental Principles and Rights at Work, the UNGPs and OECD MNE Guidelines. Key policies disclosed in the S2-1 table (page 293):

• Workplace Standards (supplier code of conduct): contractually binding requirements for suppliers' factories covering health and safety, labor rights and environmental protection. Aligned with the WFSGI code and FLA 'Workplace Code of Conduct'.
• Human Rights Policy: operationalized through the HREDD system. Owner: Executive Board and CHRO.
• Modern Slavery Policy Framework & Implementation Strategy (published 2010, updated 2023): eradicate forced labor and human trafficking.
• Responsible Recruitment Policy: eliminate migrant workers paying recruitment fees ('no worker pays for a job' pledge with AAFA/FLA, renewed March 2023).
• Health and Safety Guidelines and Environmental Guidelines.

Supporting procedures include the Responsible Sourcing & Purchasing Policy with 10 Buyer Commitments, Factory Approval Policy, External Monitoring Policy, Enforcement and Termination Guidelines, and Guidelines on Redundancy and Layoffs (pages 293-295). The program has run since 1997, with a zero-tolerance stance on forced labor, human trafficking and slavery.

Reference: page 296

adidas engages upstream supply chain workers directly and through legitimate representatives (trade unions) about actual and potential material impacts. Engagement is ongoing, since the WOVO grievance platform is open at any time; worker interviews are core to social compliance audits (suppliers audited at least once a year). Main channels:

• Workers' Voice (WOVO): app-based digital operational grievance mechanism deployed at all strategic Tier 1 facilities, plus local worker hotlines.
• Worker Pulse survey: digital worker-satisfaction survey run twice a year. In 2024, 106 facilities participated (2023: 109) across 16 countries. Favorable respondents rose from roughly 78% (2020) to nearly 90% in 2024.
• Freedom of association, social dialogue and industrial relations: Workplace Standards require suppliers to respect the right to organize and bargain collectively. adidas signed the International Accord for Health and Safety in the Textile and Garment Industry and developed a Freedom of Association (FOA) Protocol in Indonesia, now implemented across strategic Tier 1 facilities.

adidas maintains open dialogue with NGOs, labor and human rights advocacy groups, trade unions, investors and government agencies. WOVO effectiveness is tracked via KPIs, dashboards, case satisfaction ratings and on-site worker interviews. The SEA team within Global Legal, led by the VP Social & Environmental Affairs, holds senior oversight (page 298).

Reference: page 298

When negative impacts are identified through audits or grievance channels, adidas remediates via corrective action plans (CAPs) with deadlines, recorded in the Fair Factories Clearinghouse (FFC) database. Breaches are split into zero-tolerance issues (child labor, forced labor, prison labor, life-threatening H&S, systematic abuse) leading to immediate engagement and, if verified, termination; and threshold issues subject to the Enforcement Guidelines (termination, stop-work notices, third-party investigations, warning letters).

2024 enforcement (page 299): Seven warning letters issued (2023: nine) across five countries; no third warnings. No supplier agreements terminated for social compliance reasons in 2024 (2023: 0).

Grievance channels (pages 299-300): Suppliers must provide grievance systems allowing anonymous complaints, including the WOVO app at all strategic Tier 1 facilities. In 2024, close to 35,700 human and labor rights complaints were filed via WOVO (2023: around 42,000), 99% closed by year-end. Case satisfaction rose from 39% (2019) to 76% (2024); response time fell from 49 hours (2020) to under 12 hours (2024). A public third-party complaint mechanism handled 17 cases (11 closed, six ongoing). WOVO covered more than 400,000 workers in 105 facilities across 16 countries (100% of strategic partners). A Non-Retaliation Policy protects complainants.

Reference: page 301

adidas prevents and mitigates impacts through human rights due diligence (HREDD), risk mapping (country and factory-level profiles; suppliers in high-risk countries audited at least annually), and a multi-level social compliance monitoring program. 2024 priority areas: occupational H&S, child/forced labor, HREDD, gender equality, fair compensation, and freedom of association (pages 302-304).

Monitoring (pages 305-306): In 2024 adidas worked with 388 supplier facilities (2023: 357) across 39 countries, plus 34 licensees in 223 facilities. 85% of all direct and licensee facilities were audited (2023: 72%); high-risk Asia coverage was 94%. A total of 592 social compliance audits were conducted (2023: 499), including 304 adidas performance audits (95% unannounced), 11 ILO Better Work and 73 SLCP assessments. 160 initial assessments of new factories were run.

S-KPI: 15 units of measure (1S-5S). In 2024, 82% of 99 key facilities achieved 4S or better (2023: 84%).

Training/gender (pages 308-309): 104 training sessions for 2,860 individuals; Digital Training reached 68,800+ workers; 46,000+ joined the Gender Equality Worker Survey; the Women Leadership Program trained 1,600+ female supervisors from 76 factories. Incidents (pages 311-312): one Tier 2 fatality (machinery fire, not adidas materials); investigations found child/forced labor in Indian cotton (Madhya Pradesh) and forced labor at Taiwanese Tier 2 facilities, both in remediation.

Reference: page 312

adidas has set specific 2025 targets for value chain workers:

• Social impact (S-KPI): by 2025, 90% of strategic Tier 1 suppliers to reach a minimum 4S rating and 100% to reach a minimum 3S rating (scale 1S-5S; baseline 2022). In 2024, almost 82% of the 99 key facilities achieved 4S or better (2023: 84%) (page 313).
• Fair compensation: progressive improvement across strategic Tier 1 suppliers by 2025, using 2020 as baseline in a multi-year wage data collection (2020 benchmark, 2023 mid-term, 2025 final). 2023 wage data (around 73% of strategic Tier 1 suppliers) showed all surveyed factories met or exceeded minimum wage, and most exceeded the GLWC-ARI living wage benchmark except Thailand and Region 3 in Vietnam. Country detail (pages 314-316): Cambodia (8 factories; 39,152 workers), China (13; 31,755), Indonesia (9; 96,698), Pakistan (2; 7,590), Thailand (4; 5,740), Vietnam (15; 104,466).
• Gender equality / equal pay: every strategic supplier to secure gender wage parity by 2025; due to sex-disaggregated data limits the target shifted to capacity building, with a gender pay parity e-learning for 100% of key suppliers by Q4 2025 (page 316).
• HREDD: by end of 2025, 100% of the upstream value chain and own operations to have a system to identify and manage high-risk human rights issues (page 317).

Workers were not directly engaged in setting the 2025 targets, but worker feedback (WOVO, surveys) informs performance tracking (page 317).

Reference: page 322

adidas' policies for affected communities are not stand-alone but embedded in broader documents. The Human Rights Policy defines its commitment to human rights and the environment under its Human Rights & Environmental Due Diligence (HREDD) framework (owner: Executive Board and CHRO; aligned with UNGPs, OECD MNE Guidelines, International Bill of Human Rights, ILO Declaration). A long-standing Human Rights Defenders Policy establishes non-interference with HRD activities (owner: VP Social and Environmental Affairs; references the UN Special Rapporteur on HRDs). Workplace Standards are contractually binding requirements for supplier factories covering health and safety, labor rights and environmental protection. Environmental Guidelines (Wastewater Discharge; Good Practice Guideline and Toolkit) set water-management expectations referencing ZDHC. Guidelines on Employment Standards cover supplier due-diligence obligations. adidas has no stand-alone community water/sanitation policy. On Indigenous Peoples, no formal policy exists but a published position commits to the UN Declaration on the Rights of Indigenous Peoples and ILO Convention No. 169, requiring raw-material suppliers to conduct due diligence and manufacturing partners to obtain free, prior and informed consent (FPIC) for greenfield land developments near tribal areas, based on IFC Performance Standard No. 7.

Reference: page 325

adidas engages with the legitimate representatives and credible proxies of affected communities rather than directly, given the scale of its outsourced supply chain. It maintains open dialogue with local and international NGOs, labor-rights and human-rights advocacy groups, trade unions, investors, analysts and government agencies, engaging upon receiving information such as third-party complaints. The Social & Environmental Affairs (SEA) department, reporting to the CEO through the General Counsel, is primarily responsible for ensuring engagement takes place and for incorporating community needs into the overall approach. The respective supplier is the first party managing local community relationships and complaints. Specific programs address child labor, migrant labor, forced labor, trafficking and women's rights. As a founding member of Better Cotton, adidas applies its High Conservation Value (HCV) approach, which requires farmers to consult community leaders and Indigenous Peoples before converting land to cotton. adidas notes it currently has no specific process to formally evaluate the effectiveness of its engagement with affected communities, relying instead on case-resolution validation through its complaints mechanism.

Reference: page 326

adidas' grievance channels include the third-party complaints mechanism (third-party complaints procedure for Human Rights & Environmental Impacts, established in 2014), the main channel for affected communities, open to any directly affected individual or organization or their representatives. A separate community complaints reporting mechanism, a component of the Major Incident Report Protocol, lets suppliers report local community complaints linked to their operations to the SEA team. For water and sanitation, suppliers must report who the complainant is, when/how the complaint was received, complaint details and follow-up/investigation plans, then provide updates on outcomes and remediation. For human rights defenders, adidas takes direct action where a business partner has violated HRD rights and seeks constructive engagement with governments. These channels are integral to the HREDD system, evaluated annually; complaint numbers and status are published on the corporate website. A non-retaliation policy protects complainants, though adidas notes it has no structured approach to assessing community awareness or trust in these structures.

Reference: page 327

Water and sanitation actions are informed by investigations into cases reported through the community complaints reporting mechanism. In 2023 adidas revised the supplier Major Incident Report Protocol by adding this mechanism, covering all Tier 1 suppliers, Tier 1 subcontractors and strategic Tier 2 suppliers. It also tracks compliance with environmental requirements for air emissions, wastewater effluent, waste disposal and water extraction. During 2024, one relevant case occurred: a community complaint in Indonesia about a Tier 2 facility whose operations allegedly caused local flooding; adidas required the facility to update its rainwater run-off systems and, in December 2024, to commission an independent third-party investigation. For HRDs, actions are case-specific. adidas joined 18 other apparel and footwear companies in a September 2024 joint statement calling on the Cambodian government to cancel its investigation into the labor and human rights organization CENTRAL. Resources: the SEA team, a 37-person global function within Global Legal, oversees due diligence at full-time capacity, working with the Sourcing Sustainability function.

Reference: page 329

Given the very low frequency of cases managed, adidas states it does not currently have time-bound, outcome-oriented targets for reducing negative impacts on affected communities or advancing positive impacts. Because it treats any potential or actual negative impact on communities (including impacts on access to clean water and sanitation from large-scale pollution or other events) as a material concern, adidas encourages suppliers to provide early notification of major incidents and developed a more formal tracking mechanism in 2023. It tracks the effectiveness of its policies and actions on water/sanitation and HRDs through the volume of complaints received on these topics via the established grievance mechanisms described in the prior sections.

Reference: page 335

adidas maintains policies covering privacy, health and safety, and responsible marketing. Privacy: the Global Privacy Management Policy (owner: Global Privacy Officer) sets the privacy framework and expectations for third-party suppliers; supported by the Global Deletion Policy (referencing DIN 66398), Information Security Policy, Acceptable Use Policy, Information Classification Policy and Access Control Standard (referencing NIST SP 800-53 Rev. 5), under an information security management system (ISMS) built on Govern, Identify, Protect, Detect, Respond and Recover. Health and safety: the adidas Policy for the control and monitoring of hazardous substances (owner: SVP Sourcing and Product Operations, General Counsel) defines testing and certification for hazardous substances, referencing the AFIRM Restricted Substances List. Responsible marketing: the Sustainable Ingredient and Concept Standard Definition SOP, Sustainable Product Policy, Brand Partnerships Policy, Brand Partnership Escalation Process and Sports Marketing Contracts Policy. The overarching Human Rights Policy (UNGPs, OECD MNE Guidelines) and Fair Play Code of Conduct also apply. No cases of non-respect of these principles involving consumers were reported in the downstream value chain during the year.

Reference: page 338

The adidas Brand Insights department monitors, surveys and tracks consumer behavior through three teams: Marketing & Consumer Insights, Category Insights, and Brand Insights (which runs regular market studies such as brand funnel surveys). It uses three data sources: quantitative survey data from third-party agencies (annual brand perception and brand health surveys), behavioral data from social media and search platforms (Instagram, TikTok, Google) via SaaS partners, and qualitative feedback from focus groups, workshops and interviews, focusing on the GenZ demographic, avid athletes and key opinion leaders. These activities are managed by the Brand Insights & Planning team reporting to the SVP Brand Development. The Brand Partnership Insights department assesses how partners (clubs, athletes, celebrities) are perceived, measuring social media performance and brand fit, managed by the Brand Partnerships Operations, Insights and History Management team reporting to the SVP Brand Partnership. Effectiveness is assessed via brand heat, consumer demand and a structured yearly partnership-portfolio planning process.

Reference: page 339

Consumers can lodge complaints through multiple channels: contacts on national adidas websites (as detailed by the EU's General Product Safety Regulation, GPSR), the Customer Service team, dedicated adidas websites, the adiComp customer complaint system (tracking all consumer complaints at point of sale and 100% of incoming complaints and resolutions), adidas Key Account Management (channeling wholesaler-routed complaints), and the whistleblowing system. The customer service provider is contractually obligated to handle complaints under an internal due-diligence process. The Policy and Stakeholder Engagement team handles cases brought by NGOs such as consumer organizations (German 'Verbraucherzentralen'). For privacy cases, an automated individual rights request tool with KPIs and periodic reporting is used; emails to Global Privacy are handled manually by the Global Privacy team. Consumers can also use the Fair Play hotline. Retaliation protections (per G1 Business Conduct) that apply to employees also apply to consumers and end-users.

Reference: page 340

Privacy: adidas integrates privacy management systems with regular audits, employee training and security technologies; it conducts data protection impact assessments (per Art. 35 EU GDPR) on projects processing consumer data, applies need-to-know access controls and supplier due diligence, and runs InfoSec initiatives (e.g., security assessments for consumer centers and local e-commerce providers, cloud security program, container vulnerability scanning). A Cyber Security Incident Response team categorizes personal data breaches; the Data Protection Officer reports to the Executive Board. No severe privacy incidents involving consumers were reported in the year. Health and safety: company-wide product safety policies, with the adidas hazardous-substances policy (introduced 1998) monitored via own and external laboratories; contributions to AFIRM's Restricted Substances List, a PFAS phase-out guidance, and engagement with the European Chemicals Agency and US/EPA legislation. A Product Safety network and product compliance database (Certificates of Compliance) support recall management. Responsible marketing: partner screenings, social media monitoring, sentiment analysis and a partner escalation process; environmental claims that fail standards are removed or adjusted.

Reference: page 344

adidas establishes consumer-related targets through a structured process informed by stakeholder insights, tracking effectiveness through audits, due-diligence processes and feedback. However, it reports no distinct, time-bound quantitative targets across the three material areas. For privacy, the goal is to comply with all applicable privacy laws and regulations, but there is no distinct target. For health and safety, the ambition is for 100% of products to be safe, but there is no separate target; the company-wide product safety policies mitigate the risk of selling defective products (zero health and safety-related product recalls were recorded in 2024, excluding licensed products). For responsible marketing practices, adidas strives to comply with current legislative requirements and align marketing with ethical standards and consumer expectations, but again has no separate target, with several guidelines currently being (re-)developed.

Business conduct policies and corporate culture

Reference: pages 346, 349-353.

The Executive Board sets the tone from the top and every employee must act ethically and lawfully. The Fair Play Code of Conduct establishes adidas' ethical standards and covers anti-corruption, anti-bribery and whistleblowing; it is globally applicable and publicly available. Supporting policies disclosed in a structured table include the Compliance Policy (anti-bribery/anti-corruption, gifts, fraud, antitrust, conflicts of interest, non-retaliation; aligned with OECD, IDW PS 980, UNCAC, Transparency International), Global Training Policy, Responsible Sourcing & Purchasing Policy, Global Non-Trade Procurement Policy, Workplace Standards and Human Rights Policy.

The Compliance Management System (Fair Play), overseen by the CCO, is organized around three pillars: prevent, detect, respond. Prevention includes mandatory global compliance training during onboarding and in regular cycles, targeted anti-corruption/anti-bribery training for functions at risk, and Executive/Supervisory Board upskilling. Completion rates are reported to the Audit Committee. The CCO reports regularly to the Executive Board and Audit Committee.

Management of relationships with suppliers

Reference: pages 353-355.

adidas outsources the vast majority of production to independent manufacturing partners (mainly in Asia) plus non-trade suppliers (logistics, marketing, office supplies, store construction). The HREDD framework guides risk assessment in line with the UN Guiding Principles and OECD Guidelines for Multinational Enterprises and meets the German Supply Chain Due Diligence Act.

In 2024 adidas worked with 124 independent manufacturing partners (2023: 104) across 283 facilities; 78% are in Asia and 68% have a relationship of at least ten years. The Responsible Sourcing & Purchasing Policy sets ten buyer commitments, including fair, on-time payment, linked to the Better Buying Institute (member since 2019). For non-trade suppliers adidas expanded use of the EcoVadis sustainability assessment tool and the Exiger legal compliance tool. Suppliers must comply with the Workplace Standards (health and safety, labor rights, environmental protection, drawn from ILO conventions and WFSGI). Non-compliant suppliers may face termination.

Prevention and detection of corruption and bribery

Reference: page 356 (also pages 351-353).

In line with the Code of Conduct and Compliance Policy, adidas strictly prohibits all acts of corruption and bribery, directly or via intermediaries, and operates a zero-tolerance policy. The commitment is reinforced by the Fair Play Code of Conduct and onboarding training: 100% of corporate employees (including material functions at risk) are covered by Fair Play onboarding training, with a 97% completion rate for new joiners in 2024. Comprehensive global modules plus specialized anti-bribery/anti-corruption training are delivered by Regional Compliance Managers and Local Compliance Officers.

adidas identifies sourcing, non-trade procurement and brand partnerships as areas of increased corruption/bribery risk and applies additional rules and internal controls. The three pillars (prevent, detect, respond) apply to corruption and bribery incidents. Trend analyses inform interventions; investigations are independent and may use external resources; the Compliance team reports all cases to the CCO, Executive Board and Supervisory Board/Audit Committee as appropriate.

Confirmed incidents of corruption or bribery

Reference: page 356.

There were no convictions and no fines for violation of anti-corruption and anti-bribery laws in the reporting period. adidas states it constantly reviews its procedures to prevent, detect and combat allegations or incidents of corruption and bribery, including the procurement process. Data on fines, penalties or convictions related to anti-bribery/anti-corruption violations, as well as any legal proceedings for late payments, was collected and confirmed by the Local Compliance Officers of each legal entity. Entity-specific information on potential compliance incidents is included by reference to the Risk and Opportunity Report.

Payment practices

Reference: page 357 (also page 347).

adidas reports it cannot yet identify small- and medium-sized suppliers in its systems and is working on a solution; to comply with ESRS requirements it reports the payment terms applicable to more than half of its suppliers. The standard payment term is 60 days from invoice receipt date, and 51% of suppliers are aligned with these terms. Those suppliers are paid on average within 68 days, and 92% of payments to them are processed on time. For all suppliers, there were zero cases of legal proceedings for late payments registered in 2024.