adidas AG : adidas Group shows leadership in supply chain management, launches sustainability progress report

adidas AG : adidas Group shows leadership in supply chain management, launches
                        sustainability progress report

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 The adidas Group marks a new milestone in the management of its supply chain
as it explores new ways of direct communication between factory management and

Herzogenaurach, May 6^th, 2013  - Today, the adidas  Group published its  2012 
Sustainability Progress Report, reiterating its commitment to transparency  in 
sustainability performance reporting. As part of the report, the adidas  Group 
announced  the  first  results  of  an  industry-leading  project  to  improve 
communication between factory management and workers in its supply chain.

Constantly looking into new and innovative  ways to connect directly with  its 
suppliers' workers, the  adidas Group  launched a  mobile phone  communication 
pilot project at  one of the  company's main footwear  suppliers in  Indonesia 
during the second half of  2012. The project, inspired  by an ILO Better  Work 
initiative, takes advantage  of the  fact that  the vast  majority of  factory 
workers in the country have mobile  phones and are active users; through  this 
system, workers can simply  send an SMS  text message and  raise the alarm  if 
they are concerned that their rights are being compromised.

The pilot  project  has shown  encouraging  results and  has  been  positively 
received by both  workers and  factory management.  As the  system allows  for 
direct, personal, and  easy communication,  issues can be  detected early  and 
addressed quickly before they become a major concern for workers. In its first
months of  operation, workers  shared  grievances on  Human  Resources-related 
issues, such as staff reductions, working hours and insurance, and also  asked 
questions and made suggestions to their management.

"Protecting the  interests of  global workers  involved in  manufacturing  our 
products is an on-going priority for the adidas Group as we constantly  strive 
to improve  workers'  conditions  in our  suppliers'  factories,"  said  Glenn 
Bennett, adidas  Group Board  member responsible  for Global  Operations.  "By 
empowering workers to  reach out to  the factory management  directly, we  are 
taking communication  between  factory  management and  workers  to  the  next 

The success of the pilot project has led to its extension to four other
factories in Indonesia and one in Vietnam in 2013. Additional information on
the initiative is available on the adidas Group Corporate Blog, as well as in
the 2012 Sustainability Progress Report.

The adidas Group initiated reporting about its sustainability performance back
in 2000, and was the first company in the sporting goods industry to do so.
"The report's title 'Never Stop' explains the adidas Group's approach to
sustainability," stated Frank Henke, adidas Group Global Director for Social
and Environmental Affairs. "Some years ago, we established 2015 targets for
the adidas Group, and we constantly review our performance against them. The
2012 Report takes a close look at the milestones set for 2012 and what the
Group has done to achieve them - because performance counts."

Some highlights of the 2012 Sustainability Progress Report are:

  *adidas launched the DryDye collection, becoming the first in the market to
    apply the  revolutionary DryDye  technology, which  uses no  water in  the 
    dyeing process.
  *The target of using 5% Better Cotton  by 2012 was achieved; this is a  key 
    step towards the goal of  using 40% Better Cotton  by 2015, while by  2018 
    the adidas Group has committed  to using 100% 'sustainable cotton'  across 
    all product categories in all its brands.
  *The collection for the London 2012 Olympic Games was the most  sustainable 
    adidas collection ever produced.
  *The  rating  of  the   factories  with  which   the  adidas  Group   works 
    substantially increased -  86% of  the company's  strategic suppliers  now 
    have a 3C-rating or better, and 37% have a 4C-rating or better.
  *Overall, more  than 26,000  volunteer  hours were  donated by  the  adidas 
    Group's employees to community projects in 22 countries.

Looking ahead, the adidas Group's next set of targets for 2013 includes:

  *Disclosing the  list  of  factories  manufacturing  2014  FIFA  World  Cup 
    Brazil(TM) products. The same was done  for the 2010 FIFA World Cup  South 
    Africa(TM) as well as for the  London 2012 Olympic Games, when the  adidas 
    Group became the first  Olympic partner to disclose  its supply chain  for 
    the Olympic Games. The adidas Group global supplier factory list was first
    disclosed in 2007 and is publicly available on the corporate website.
  *Increasing the  usage  of  DryDye  materials  across  ranges  and  product 
    categories - with major water savings in the dying process.
  *Increasing the sourcing of leather volumes from Gold-rated suppliers.
  *Having additional sites owned  to be ISO 14001  certified, as part of  the 
    Green Company Initiative.
  *Continuing to collaborate with key partners to embed new thinking and ways
    of working  within  the  industry.  This  includes,  as  an  example,  the 
    company's active participation in  the Sustainable Apparel Coalition,  the 
    Roadmap to Zero Discharge of Hazardous  Chemicals by 2020, the ILO  Better 
    Work Program, the Leather Working Group and the Fair Labor Association.

This year's report is available online at

About the adidas Group's approach to Sustainability
The adidas Group's sustainability strategy is rooted in the Group's values -
performance, passion, integrity and diversity. It is built on the achievements
and learnings from previous years, while taking into account the societal
landscape and future global trends. The five areas of the adidas Group's
strategy are:

  *Achieving environmental sustainability and managing scarce resources;
  *Respecting human rights and driving social compliance in the supply chain;
  *Engaging stakeholders;
  *Developing employees and
  *Supporting people  in the  local  communities in  which the  adidas  Group 

About the adidas Group
The adidas Group is a global leader in the sporting goods industry, offering a
broad portfolio of footwear, apparel and hardware for sport and lifestyle
around the core brands adidas, Reebok, TaylorMade, Rockport and Reebok-CCM
Hockey. Headquartered in Herzogenaurach, Germany, the Group employs more than
46,000 people across the globe and generated sales of € 14.9 billion in 2012.



Media Relations                       Investor Relations
Jan Runau                             John-Paul O'Meara
Chief Corporate Communication Officer Vice President Investor Relations
Tel.: +49 (0) 9132 84-3830            Tel.: +49 (0) 9132 84-2751
Katja Schreiber                       Christian Stoehr
Director Corporate Communication      Senior Investor Relations Manager
Tel.: +49 (0) 9132 84-3810            Tel.: +49 (0) 9132 84-4989
Silvia Raccagni
Corporate Communication Manager
Tel.: +49 (0) 9132 84-3977

Attachment: Press Release adidas Group Sustainability Report 2012


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