How Adidas is Advancing Supply Chain Sustainability

[Part 2 of 2].

Circular materials and responsible sourcing
Sustainable materials remain a key focus for Adidas.

In its 2024 annual report, the company states: “In 2024, climate change, pollution, water, biodiversity and ecosystems and resource use and circular economy were confirmed as material environmental impact areas for us to continue to focus on in the future.”

As part of its approach, Adidas works to eliminate deforestation from its leather supply chain by 2030.

The T-REX Project aims to accelerate circularity in the fashion industry – Credit: T-REX Project
It is also expanding circularity initiatives, investing in projects such as T-REX (Textile Recycling Excellence) and Sorting for Circularity.

T-REX focuses on recycling polyester, polyamide 6 and cellulosic materials from textile waste into new garments. The project, involving 13 partners, including Adidas, Veolia and Fashion for Good, aims to scale up textile recycling and reduce reliance on virgin materials.

Adidas further supports circularity by increasing the use of recycled materials.

The company reports a 99% recycled polyester usage rate wherever possible, significantly cutting its dependence on virgin polyester. This shift contributes to more sustainable product development and waste reduction.

Responsible business practices and innovation
Adidas recognises the importance of maintaining ethical and sustainable practices across its supply chain.

adidas aims to reach net zero by 2050 – Credit: adidas

adidas is investing in innovation for sustainable materials – Credit: adidas
The company conducts due diligence to identify and mitigate potential human rights and environmental risks. This includes evaluating suppliers and ensuring compliance with labour and safety standards.

Adidas actively works to improve the environmental and social performance of its supply chain partners.

The company also continues to invest in innovation to enhance sustainability, exploring bio-based alternatives to synthetic materials and developing new manufacturing techniques that minimise waste and energy consumption.

Additionally, it optimises logistics and transportation operations to reduce its carbon footprint.

Beyond its direct operations, Adidas supports environmental conservation and biodiversity initiatives. By integrating sustainability into its supply chain, the company aims to set industry benchmarks for responsible business practices while maintaining financial growth.

With a clear focus on supply chain sustainability, Adidas balances profitability with long-term environmental goals.

 

By Sophie Rice
Source:  Supply Chain Digital. https://supplychaindigital.com/sustainability/inside-adidas-approach-to-growth-and-sustainability. 23 March 2025.

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