Adidas awarded strong ESG rating

Adidas has been awarded a strong ESG rating by rating agency S&P for its sustainability performance.

The ESG evaluation assesses a company’s ability to prepare for potential risks, with a higher score out of 100 indicating the lowest level of risk.

Assessed across environmental, social and governance categories, Adidas scored 79 out of 100, which is one of the highest scores out of the companies assessed. The brand’s overall ESG evaluation score placed at around 85, ranking Adidas at sixth in the entire S&P global rating universe.

S&P’s report noted the brand’s approach to innovation, supply chain management and consumer engagement. Its ambition to use sustainable materials and further its circular services was also given credit.

Adidas’ control mechanisms over its supply chain that help to provide fair and safe labour practices was commended, along with the strong interaction between the supervisory board and executive board.

Also emphasised was Adidas’ integration of a sustainability target into the compensation system of the executive board.

“We have doubled down on our commitment to sustainability as a focus area in our Own the Game strategy and are proud to see this being recognized externally,” said member of Adidas executive board responsible for global operations, Martin Shankland. “The results underline our leadership approach to manage sustainability across all dimensions and the entire company.”