Company of the month:
The Company of the Month is selected due to recent developments and in connection
with the topic ”Global Sporting Events”. The EAM Responsible Investments team analyses
the strenghts and weaknesses of the selected company in terms of ESG.
The Adidas group from Herzogenaurach, official partner of the FIFA World Cup Final 2014™ in Brazil, manufactures
under the labels of Adidas, Reebok, Taylormade-Adidas Gold, and Rockport. The company operates in sporting
goods and lifestyle as mass and niche provider. The product range encompasses sportswear, shoes, and sporting
goods for amateur and professional athletes, with a focus on football, running, basketball, workout, fitness, golf,
With a B (“good”) in EAM’s current SRI rating, Adidas ranks among the top three companies in the area of Textiles,
Apparel & Luxury Goods. Companies that are active in this sector are under close scrutiny – especially if they are
as well-known as Adidas. The fact that a significant share of production originates in low-wage countries thus
harbours high risk for the company’s reputation. Also, suppliers from these countries continue to apply harmful
substances in the production of shoes and textile goods.
Adidas AG recorded sales of EUR 3.5bn in the first
quarter of fiscal 2014. The group employs over 50,700
people in more than 160 countries. Adidas is among
the world’s leading companies in the sporting goods
Until 2015, the Adidas group wants to cut its CO2 emissions by 30%. The idea is to reach this goal via reduced
energy consumption, the use of energy with lower carbon emissions, and the offsetting of emissions by means
of specific projects. Adidas has provided the Carbon Disclosure Project (CDP) with a CO2 emission report since 2007.
Adidas’ suppliers have to comply with numerous specifications in terms of healthcare, safety, working rights,
and environmental protection. The compliance with said standards is ensured by visits and audits by internal
and external specialists. In the case of compliance shortcomings, steps such as for example written warnings
or the contacting of local authorities are taken. Repeated and/or grave non-compliance results in the termination
of business relations.
Adidas engages especially in countries and regions where the group has a larger supplier network in place. The
activities include relief operations e.g. in case of natural disasters; projects to grant underprivileged children and
adults access to education and sports activities; donations to support local charity organisations; the sponsoring
of a variety of local sports events; the organisation of clothing and toy drives; beach clean-ups etc. In addition
the “adidas Fund” offers employees the chance to volunteer for various projects.