German's Adidas bags top ESG rating by S&P for high sustainability

Combined with a strong preparedness score (+6), the company’s overall ESG evaluation score amounts to 85, placing Adidas sixth in the entire S&P Global Rating Universe, the company said in a press release.

In its assessment, S&P emphasises Adidas’ industry-leading approach to innovation, supply chain management and consumer engagement. In particular, credit is given to Adidas’ ambitions to scale the use of sustainable materials, to expand circular services and to deliver against ambitious net-zero emission targets.

In addition to Adidas’ strong control mechanisms over its supply chain ensuring fair and safe labour practices, the analysis also calls out the integration of a sustainability target into the compensation system of the executive board. The close interaction between the supervisory board and the executive board is seen as exemplary and supportive of the overall strategy execution. 

The S&P global ratings’ ESG evaluation assesses a company’s ESG performance (ESG profile score) and ability to prepare for potential future risks and opportunities (preparedness score). The ESG profile score and preparedness score sum up to the final ESG Evaluation Score that allows comparison with other entities globally, across sectors. The upper score of 100 indicates the lowest level of risk.

The final report is the result of comprehensive engagements between S&P global rating, Adidas and its senior management, including members of both the supervisory board and the executive board, presenting a holistic picture of the company’s sustainability performance.

“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 recognised externally. The results underline our leadership approach to manage sustainability across all dimensions and the entire company. We are convinced that the continued integration of sustainability into our strategy will support the ongoing future success of Adidas – in the interest of all stakeholders,” Martin Shankland, member of the Adidas executive board responsible for global operations said in a statement.

Fibre2Fashion News Desk (GK)