Environment

Own sites - Target 1

To conduct a gap analysis of the environmental performance of the adidas Group's own production sites.

Why was this target chosen?

Measuring resource consumption and its environmental impact is the basis for managing further reduction and efficiencies through effective programmes. Since the year 2001 we have been systematically collecting key environmental data from our own production sites. adidas Group production sites in Germany and China have been running certified environmental management systems for years.

With Reebok becoming a member of the adidas Group in 2006, the company now operates thirteen own production sites.

What was the approach taken?

The aim was to develop a standardised approach in analysing and assessing the environmental performance of the production sites and to define tailored programmes for these sites to help further reduce their environmental impact.

Score

25 percent

Barriers encountered along the way

None.

Conclusion

During 2008, the target was merged with the goals that are now pursued under the Green Company initiative, which is an internal initiative to improve the environmental performance of the adidas Group overall. So the target has been rolled into a wider programme under the Green Company initiative to assess the environmental performance of all major sites, whether production or administration.

The assessment scheme was developed in 2008 and is going to be applied to all major locations in early 2009. The findings of the assessment are going to be used to outline Group-wide measurable environmental targets.

Lessons learnt in 2008

The target was over-ambitious for the time available.

New target for 2009

In 2009, all major sites will be systematically assessed under the Green Company initiative.

Own sites - Target 2

To conduct an in-depth environmental review of the adidas Group Headquarters facilities in Germany.

Why was this target chosen?

This target was chosen to identify the potential for environmental improvement at one of our major administration sites and to develop a role model for systematically addressing environmental issues at other adidas Group sites.

What was the approach taken?

Environmental consultants and energy efficiency experts were commissioned to conduct an in-depth environmental review at the three core sites of the adidas Group in Herzogenaurach, Germany. The major focus of this review was to identify potential energy and resource savings for both existing facilities and new building projects. Furthermore the existing environmental management system was benchmarked against the environmental management standard ISO 14001 to identify shortcomings or gaps.

Score

100 percent

Barriers encountered along the way

None.

Conclusion

This approach provided a systematic framework for analysing all existing environmental initiatives, which prepared the ground for establishing a structured management system, operated by the site's Facility & Services Management Team. The environmental management programme is going to be established from 2009 onwards. As part of the programme, the sites will take action and set targets for each year. There will be regular management review and employee communication.

Furthermore this approach was the foundation of developing the Green Company programme that is going to be rolled out to other Group entities in 2009.

Lessons learnt in 2008

Roles and responsibilities have been clarified and we now have a framework for managing environmental issues at our sites that can be applied across the whole Group.

New target for 2009

The adidas Group Headquarters in Germany will further develop its environmental management system and prepare for certification in accordance with ISO 14001 by the end of 2010.

Own sites - Target 3

To evaluate the environmental performance of the adidas Group transport and logistics providers to support our communication on the overall environmental footprint of our business.

Why was this target chosen?

For a company that has outsourced most of its production, efficient transportation of goods from factories to retail markets and customers is of critical relevance. The fuel used to transport goods creates carbon dioxide emissions, a major contributor to climate change.

To reduce the environmental impact of transport operations, we typically ship most of our cargo by sea.

What was the approach taken?

We reviewed how we manage our freight service procurement process and our transportation planning activities.

Due to the fact that the adidas Group works with third parties rather than our own transportation fleet, it is difficult for us to measure the resulting vehicle emissions from transporting our products. Our transport and logistic department has therefore developed environmental benchmarks for carriers and forwarders to evaluate their performance. Seven of our major business partners who account for 80% of our global sea transports were required to provide in-depth information about their:

  • Existing environmental management systems or safety certifications and their environmental policies
  • Current CR activities
  • CR strategy.

The aim is that social and environmental considerations should become a stronger element of business decisions in this area.

Score

75 percent

Barriers encountered along the way

None.

Conclusion

All of the cargo carriers had successfully undergone ISO 14001 certification and most of them could also show an established OHSAS 18001 health and safety management system.

The wide range of environmental improvement initiatives among our suppliers included:

  • Reducing nitrogen/sulphur oxide emissions
  • Energy efficiency measures
  • Preventing oil spills
  • Using solar energy in logistic centres
  • CO2 reduction programmes.

Lessons learnt in 2008

We need a deeper level of engagement with our cargo suppliers if we are to accelerate existing programmes and drive improvements in our transportation and logistics impacts.

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Within this report
KEY
  • 0%: no progress
  • 10%: initiated
  • 25%: partly complete
  • 50%: good progress
  • 75%: substantially complete
  • 100%: fully complete