Environment

Certifications obtained by athletic footwear supplier sites producing for the international market

83% of the adidas Group's global athletic footwear is sourced from suppliers who are both ISO 14001 and OHSAS 18001 certified

We have limited control over the direct environmental impacts of the manufacturing process and how our suppliers act. The best way to influence the environmental impacts at our suppliers' factories is to encourage the introduction of environmental management systems, and we have made implementing such a system mandatory for all our core suppliers. Achieving certification to a management system requires factory managers to plan, manage and review their own environmental performance.

In 2010, we worked with 24 athletic footwear suppliers who are certified in accordance with the international environmental management standard ISO 14001 and the workplace health and safety management standard OHSAS 18001. These suppliers produced around 83% of the adidas Group's global athletic footwear sourcing volume.

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CERTIFICATIONS OBTAINED BY ATHLETIC FOOTWEAR SUPPLIER SITES PRODUCING FOR THE INTERNATIONAL MARKET1

Country Number of FW suppliers ISO 14001 OHSAS 18001
2008 2009 2010 2008 2009 2010 2008 2009 2010
Argentina 1 2 1 - - - - - -
Brazil 2 2 2 - - - - - -
Cambodia - - 1 - - - - - -
China 11 7 14 9 7 10 9 7 10
Germany 1 1 1 1 1 1 1 1 1
India 1 1 1 - 1 1 - 1 1
Indonesia 8 6 9 4 3 4 4 3 4
Italy2 1 1 1 - - - - - -
Philippines 1 1 - - - - - - -
Thailand 1 1 - - - - - - -
Vietnam 11 10 10 6 7 8 6 7 8
TOTAL 38 32 40 20 19 24 20 19 24
  1. Excluding factories from the Rockport business segment and licensee factories.
  2. Health and Safety Management System in place that is regularly inspected by local authorities.

Certification of athletic footwear suppliers producing for the international export market in %

Certification of athletic footwear suppliers
20082008 53% 53%
20092009 59% 59%
20102010 60% 60%

Freight types used to ship adidas products

+4% increase in air freight shipment for apparel products

In 2010, we saw a considerable increase in air freight shipment for apparel products from 4% to 8%. Air freight transport was driven and heavily influenced by a major global sports event, the 2010 FIFA World Cup South Africa™. Selected time sensitive products had to be transported via air freight to meet customer requests.

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Freight types used to ship adidas products1

% of products shipped 2010 2009 2008
Apparel Truck 15 14 17
Sea freight 76 81 77
Air freight 8 4 6
Sea and air freight 1 1 1
Hardware2 Truck 2 1 2
Sea freight 95 97 96
Air freight 3 2 2
Sea and air freight 0 0 0
Footwear Truck 1 2 2
Sea freight 97 97 96
Air freight 2 1 2
Sea and air freight 0 0 0
  1. Figures expressed as a percentage of the total number of products transported
  2. Accessories and gear

Green Company data

The adidas Group operates more than 300 offices, manufacturing sites and distribution centres worldwide; they vary in size and structure. Some of the sites are owned by the Group, others are leased or rented.

In the first phase of the Green Company Initiative roll-out in 2008 and 2009, 24 major sites were included and reported environmental key data.

These sites included Group and brand headquarters, our own production facilities and some distribution centres, representing a significant proportion of the total environmental footprint of the Group's own operations.

In 2010, a significantly higher number of locations (67) was included in the Green Company reporting, aiming at covering around 80% of the Group's total emissions. Those locations were included in the reporting and account for approximately 80% of the total occupied and built-upon area. The actual selection of reporting entities was based upon the inclusion of all main headquarter locations with more than 2,000 square metres, all manufacturing entities, as well as all distribution centres with more than 3,000 square metres.

In order to facilitate the reporting of all these sites - nearly 2/3 of them are new reporters in 2010 - new web-based data recording and reporting tool was developed that provides automatic plausibility and comment controls, as well as statistical analysis and reporting functions.

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The table below shows a consolidated overview of data reported by all locations for the calendar year of 2010. Since the majority of these locations are first time reporters in 2010, a trend analysis for this group is not possible. Many of the locations that reported their data for the first time in 2010 have not yet analysed their savings potential. Therefore they will be informed regularly about the targets and implementation guidelines, as well as supported in defining their programmes for 2011. All locations will also be updated regularly and briefed about best practice examples.

Administration offices

Region EMEA Region AMERICASRegion ASIATotal
Total energy consumption (MWh) 44,000 37,800 8,100 89,900
Total carbon emissions (tonne) 12,500 16,400 4,300 33,200
Total water consumption (m3) 56,500 93,200 15,500 165,200
Total household waste (tonne) 320 950 90 1,360
Total paper consumption (tonne) 110 150 80 340
Total organic solvents (kg) 190 8,430 n.r. 8,620
Total waste
water (m3)		 32,200 n.r. n.r. 32,200
Number of employees 6,353 3,216 2,195 11,764
Number of workplace accidents 30 10 2 42
Number of lost days due to accidents 353 870 65 1,288

Own production sites

Region EMEA Region AMERICASRegion ASIATotal
Total energy consumption (MWh) 11,100 33,500 700 45,300
Total carbon emissions (tonne) 900 10,400 400 11,700
Total water consumption (m3) 4,700 40,600 2,400 47,700
Total household waste (tonne) 150 660 3 810
Total paper consumption (tonne) 20 320 3 340
Total organic solvents (kg) 16,050 12,060 n.r. 28,110
Total waste
water (m3)		 4,700 n.r. n.r. 4,700
Number of employees 370 1,767 270 2,407
Number of workplace accidents 12 73 0 85
Number of lost days due to accidents 94 834 0 928

Distribution centres

Region EMEA Region AMERICASRegion ASIATotal
Total energy consumption (MWh) 23,100 62,800 6,000 91,900
Total carbon emissions (tonne) 8,100 22,100 3,700 33,900
Total water consumption (m3) 24,600 71,600 46,600 142,800
Total household waste (tonne) 230 860 150 1,240
Total paper consumption (tonne) 470 200 40 710
Total organic solvents (kg) 100 120 n.r. 220
Total waste
water (m3)		 9,500 32,000 1,600 43,100
Number of employees 1,216 2,454 1,390 5,060
Number of workplace accidents 26 84 4 114
Number of lost days due to accidents 306 2,557 17 2,880

Totals

Total
Total energy consumption (MWh) 227,100
Total carbon emissions (tonne) 78,800
Total water consumption (m3) 355,700
Total household waste (tonne) 3,410
Total paper consumption (tonne) 1,390
Total organic solvents (kg) 36,950
Total waste water (m3) 80,000
Number of employees 19,231
Number of workplace accidents 241
Number of lost days due to accidents 5,096

n.r. Not reported

Core target follow-up for sites reporting for 2008-2010

The table below shows the aggregated target results for the locations that have been reporting Green Company data since 2008. It aims to provide an overview regarding target achievements compared to specific quantified saving targets, the so-called core targets. The table depicts the target 2015, the linear (or pre-defined) annual target and the actual performance result of the reporting entities. Locations that have achieved the targets are marked in green. Furthermore, the table shows the total result for all these reporters and the results per facility type: administration office, own production site and distribution centre.

The following key trends were identified:

  • Energy consumption stayed stable, both in terms of energy and carbon per square metre. Several locations have been conducting energy audits and developing detailed action plans that will be implemented throughout 2011. The results of these plans will be seen only in 2011 and 2012.
  • Targeted linear reduction for water consumption should have been 5.7%; in reality, 11.8% reduction was achieved, twice as much as anticipated.
  • For household waste, the targeted linear decrease towards the 2015 target should have been 7% and we achieved a substantial saving of 16.7% per employee.
  • The paper consumption target per employee, set to 20% for 2010, has not been achieved. However, the reduction of paper consumption by 17.7% shows that we are on track towards our linear target for 2015.

Core target follow-up for all sites reporting for 2008 - 2010

    Administration
offices		 Own production
sites		 Distribution
centres		 Total
Energy savings
MWh/m2		 Target 2015 -20% -20% -20% -20%
Target linear -5.7% -5.7% -5.7% -5.7%
Result 2010 0.5% 6.5% -15.9% -0.4%
Carbon savings
t/m2		 Target 2015 -30% -30% -30% -30%
Target linear -8.6% -8.6% -8.6% -8.6%
Result 2010 5.3% -5.4% -10.2% 0.7%

Water savings
m3/person

 Target 2015 -20% -20% -20% -20%
Target linear -5.7% -5.7% -5.7% -5.7%
Result 2010 -23.1% 9.0% 10.6% -11.8%
Household waste
reduction t/person		 Target 2015 -25% -25% -25% -25%
Target linear -7.1% -7.1% -7.1% -7.1%
Result 2010 -23.3% -5.1% -9.8% -16.7%
Paper savings
t/person		 Target 2015 -50% -50% -50% -50%
Target linear -20% -20% -20% -20%
Result 2010 -24.5% -12.4% 12.7% -17.7%
  • green = achieved
  • yellow = not achieved

While the total results for all locations and types of facilities showed a positive development, there remain areas where individual facility sites will need to improve over the next few years.

A more detailed and comprehensive report that analyses the results and performance of Green Company data is posted on our corporate website.

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