ANNUAL REPORT 2025
ANNUAL REPORT 2025
Targets – Results – Outlook
Currency-neutral net sales development
to increase at a
high-single-digit rate
to increase
by around 9%
10%
to increase at a
high-single-digit rate
Operating profit
to increase to a level of between
€ 1.7 billion and € 1.8 billion
to increase to a level of
around € 2.0 billion
€ 2,056 million
to increase to a level of
around € 2.3 billion
Average operating working capital
in % of net sales
between 21% and 22%
between 21% and 22%
23.0%
between 22% and 23%
Capital expenditure
around € 600 million
around € 600 million
€ 477 million
around € 500 million
1 As published on March 5, 2025.
2 As published on October 21, 2025.
Targets – Results – Outlook
2025 Initial Targets1
2025 Updated Targets2
2025 Results
2026 Outlook
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Financial Highlights 2025 (IFRS)
Operating Highlights (€ in millions)
Net sales
24,811
23,683
5%
Gross profit
12,804
12,026
6%
Other operating expenses
10,871
10,945
(1%)
EBITDA
3,124
2,465
27%
Operating profit
2,056
1,337
54%
Net income from continuing operations
1,377
824
67%
Net income attributable to shareholders
1,340
764
75%
Key Ratios
Gross margin
51.6%
50.8%
0.8pp
Other operating expenses in % of net sales
31.4%
34.2%
(2.8pp)
Operating margin
8.3%
5.6%
2.6pp
Effective tax rate
24.3%
26.5%
(2.2pp)
Net income attributable to shareholders in % of net sales
5.4%
3.2%
2.2pp
Average operating working capital in % of net sales
23.0%
19.7%
3.3pp
Equity ratio1
28.5%
26.5%
2.0pp
Adjusted net borrowings/EBITDA
1.4
1.5
(0.1)
Financial leverage1
75.0%
66.1%
8.8pp
Return on equity1
23.2%
14.0%
9.3pp
Balance Sheet and Cash Flow Data (€ in millions)
Total assets
20,262
20,655
(2%)
Inventories
5,832
4,989
17%
Receivables and other current assets
4,528
4,460
2%
Operating working capital
5,556
4,306
29%
Shareholders’ equity
5,776
5,476
5%
Capital expenditure
477
540
(12%)
Cash flows from operating activities2
751
2,910
(74%)
Per Share of Common Stock (€)
Basic earnings
7.46
4.24
76%
Diluted earnings
7.46
4.24
76%
Cash flows from operating activities2
4.21
16.30
(74%)
Dividend3
2.80
2.00
40%
Share price at end of period
169.05
236.80
(29%)
Other (at end of period)
Number of employees
64,938
62,035
5%
Number of shares outstanding
178,665,018
178,549,084
0%
Average number of shares
178,559,220
178,549,084
0%
1 Based on shareholders’ equity.
2 Prior year adjusted due to Hyperinflation accounting.
3 Value for the reporting year subject to Annual General Meeting approval.
Financial Highlights 2025 (IFRS)
2025
2024
Change
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About this Report
With the Annual Report 2025, adidas communicates financial and non-financial information in a combined
publication. The report provides a comprehensive overview of the financial, environmental, and social
performance of adidas in the 2025 financial year.
We publish our Annual Report exclusively in a digital format. It is available as an Online Report and PDF.
►REPORT.ADIDAS-GROUP.COM
The reporting period is the financial year from January 1 to December 31, 2025. To enhance readability, we
do not include registered trademarks in this publication, and we refrain from highlighting rounding
differences, which may arise in percentages and totals, where these occur. In addition, we endeavor to use
gender-neutral language as far as possible, but on occasion we may use male pronouns to refer to both
genders. The adidas Annual Report 2025 is available in English and German.
The following symbols indicate important information:
►There is more information online or on a different page within the report.
Term underlined: There is a detailed definition of this term in the glossary.
Independent assurance
The Consolidated Financial Statements prepared by adidas AG, including the Statement of Financial
Position, Income Statement, Statement of Comprehensive Income, Statement of Changes in Equity,
Statement of Cash Flows, and the Notes as well as the Group Management Report, have been audited by
PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft (‘PwC’).
►SEE COPY OF THE AUDITOR´S REPORT
In addition, this report contains a Sustainability Statement that has been prepared in accordance with the
European Sustainability Reporting Standards (‘ESRS’). It also fulfills the requirements for non-financial
reporting obligations in accordance with §§ 289b ff. and 315b to 315c of the German Commercial Code
(HGB) and thus represents the Combined Non-Financial Statement for the adidas Group and adidas AG. The
Sustainability Statement has been audited with limited assurance by PwC.
It was not part of PwC’s engagement to review the Online Report or references to external sources such as
our corporate website.
►SEE SUSTAINABILITY STATEMENT ►SEE ASSURANCE REPORT OF THE INDEPENDENT GERMAN PUBLIC AUDITOR ON A LIMITED ASSURANCE
ENGAGEMENT IN RELATION TO THE GROUP SUSTAINABILITY STATEMENT ►REPORT.ADIDAS-GROUP.COM
Forward-looking statements
Our Group Management Report contains forward-looking statements that reflect Management’s current view
with respect to the future development of our company. The outlook is based on estimates that we have
made on the basis of all the information available to us at the time of completion of this Annual Report. In
addition, such forward-looking statements are subject to uncertainties that are beyond the control of the
company. In case the underlying assumptions turn out to be incorrect or the described risks or
opportunities materialize, actual results and developments may materially deviate (negatively or positively)
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from those expressed within such statements. adidas does not assume any obligation to update any
forward-looking statements made in the Group Management Report beyond statutory disclosure obligations.
►SEE OUTLOOK ►SEE RISK AND OPPORTUNITY REPORT
Alternative performance measures
adidas uses ‘Alternative Performance Measures’ (‘APM’) in its regulatory and mandatory publications that
may represent so-called non-GAAP measures. An overview of these alternative performance measures can
be found on our website.
►ADIDAS-GROUP.COM/FINANCIAL-PUBLICATIONS
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TO OUR SHAREHOLDERS
Interview with our CEO
010
Executive Board
016
Supervisory Board
020
Supervisory Board Report
024
Declaration on Corporate Governance
034
Our Share
047
GROUP MANAGEMENT REPORT
OUR COMPANY
Roadmap to Success
053
Description of Business Model
055
Business Model Overview
055
Product and Marketing
056
Markets and Sales Channels
064
Sourcing and Supply Chain
067
People and Culture
070
GROUP MANAGEMENT REPORT
FINANCIAL REVIEW
Internal Management System
074
Business Performance
076
Income Statement
078
Statement of Financial Position and
Statement of Cash Flows
085
Treasury
092
Financial Statements and
Management Report of adidas AG
098
Disclosures Pursuant to § 315a and
§ 289a of the German Commercial
Code and Explanatory Report
102
Business Performance by Segment
109
Outlook
115
Risk and Opportunity Report
118
Illustration of Risks
126
Illustration of Opportunities
134
Management Assessment of Performance,
Risks and Opportunities, and Outlook
136
GROUP MANAGEMENT REPORT
SUSTAINABILITY STATEMENT
ESRS 2 – General Disclosures
139
ESRS E1 – Climate Change
170
ESRS E2 - Pollution
189
ESRS E3 – Water and Marine Resources
198
ESRS E4 – Biodiversity and Ecosystems
205
ESRS E5 – Resource Use and
Circular Economy
217
EU Taxonomy
232
ESRS S1 ESRS – Own Workforce
237
ESRS S2 – Workers in the Value Chain
265
ESRS S3 – Affected Communities
281
ESRS S4 – Consumers and End Users
287
ESRS G1 – Business Conduct
299
CONSOLIDATED FINANCIAL STATEMENTS
Consolidated Statement
of Financial Position
309
Consolidated Income Statement
311
Consolidated Statement of
Comprehensive Income
312
Consolidated Statement of Changes
in Equity
313
Consolidated Statement of Cash Flows
314
Notes
315
Notes to the Consolidated Statement of
Financial Position
335
Notes to the Consolidated Income Statement
385
Additional Information
392
Shareholdings
407
Responsibility Statement
410
Copy of the Auditor's Report
411
Independent Auditor’s Assurance
Report – Group Sustainability Statement
420
ADDITIONAL INFORMATION
Ten-Year Overview
425
Glossary
427
Declaration of Support
430
Financial Calendar
434
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ANNUAL REPORT 2025
Interview with
our CEO
THE GLOBAL POTENTIAL FOR ADIDAS IS
ALMOST UNLIMITED
Bjørn, 2025 was quite an eventful year, to say the least. Before we move to
the business side, what was your most memorable sports moment last year?
Given the huge amount of great sports events on small or larger stages throughout the year, it wouldn’t be
fair to call out just one. When people come together to do sports, this is always fantastic. I think it’s fair to
say that, for our brand, there were many events where we showed up both with our athletes and our
products that were great. It was definitely a great sports year for our company.
Turning to the business, how would you summarize 2025?
I am very happy and proud of what our people have achieved. I am very happy when you look at our
progress over the last three years, it’s gone faster than we expected in many areas. In early 2023, we laid
out what we thought we had to do over the next four years. 2025 was the third year, and we already
achieved many of the goals we set ourselves. We first had growth in the Lifestyle area, especially driven by
footwear, through which we created a lot of brand heat globally. We have gotten credibility in Performance
again, also in categories where we thought that the road was longer. The development in Running –
especially on the high end – has been great. In Football, we’ve taken back market leadership, and in
Basketball, we have innovation and product that I think people didn’t believe we can do that quickly. Our
visibility in sports – both in big global sports and smaller local sports – has grown enormously. The fact that
we have grown double digits for two consecutive years now and achieved double-digit growth all over the
world in 2025 shows you the enormous power of this brand.
What’s driving this very broad success in your opinion?
First of all, credit to the fantastic brand and company we work for. The global potential for adidas is almost
unlimited because we have 76 years of history, and we have so many stories to tell. While the brand has
been culturally relevant in all our markets, we are now also back as a sports brand all over the world. The
combination of the awareness, the history, the cultural relevance, and the performance credibility is quite
ANNUAL REPORT 2025
10
unique. And becoming a global brand with a local mindset has been a huge enabler across all of this. The
brand is strong, and we have very good and talented people that are utilizing the strength of the brand in
the local markets. It’s now up to us how we leverage this in the right way, both in the short term and the
long term.
Can you help us understand what ‘global brand with a local mindset’ means?
In a global world where information flows very quickly, you could believe that the choice of consumers is the
same everywhere. But it clearly isn’t. We see that different markets have different developments when it
comes to taste. The markets are more conscious of their own culture, meaning that the choice of the
product, the usage of the product, the meaning of what sport is, are different. I can’t force the consumer in
China to buy the same product as in Norway. And we all know the difference between Europe and America
when it comes to the sports that are relevant. We need to please the consumer where he or she is, all
within the frame of the brand. We need to have a global frame that defines what adidas is, and how we
should utilize the brand and have a vision for it. But then how we execute that in the different regions has
to be different to be successful. We should still be a sports brand at our core, and we should be utilizing
the strength of sports into local culture. And then, of course, there are lifestyle, fashion, and comfort
elements to take into account.
If we look at the overall product offering last year across global and local,
what are the products that you want to call out?
With the Samba, the Gazelle, and the Spezial, we really brought the brand back to the young female
consumer. This isn’t something that happens quickly, it’s built over time, and it’s very, very strong still.
Then, I would call out how we extended the popularity of the Three Stripes from footwear to apparel. When
you look at the sequence of that, it actually happened exactly that way. Running is another call-out,
because it was the most difficult category for us to establish ourselves in at the top. Our teams have done
a tremendous job, creating what – in my opinion – are the best running shoes. Once you have credibility at
the top, winning marathons and setting records, it’s easier to be commercially successful in everyday
running and comfort running products. And that is, of course, the plan. I could also call out the Predator in
Football, the Adizero Dropset in Training, or so many other examples of great products in our Performance
categories. I can’t point to one product or one segment. I am extremely proud to see what the teams have
done. How creative and innovative we have been across the teams and categories. How the consumers
have reacted to it the last three years showcases how good this brand is and the people behind it.
I AM VERY
HAPPY AND
PROUD OF
WHAT OUR
PEOPLE HAVE
ACHIEVED
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One of the things that you haven’t mentioned is the pet collection that has
caught quite some attention globally after being launched in China. Are you
trying to expand into new territories here?
I had nothing to do with that because that idea, of course, came from our China team. They used the
popularity of adidas to extend the range. I would say it’s a local marketing tool that has suddenly become a
business. Again, it shows the creativity of the team. It shows that our teams on the ground know their
consumers and what matters to them most. And it shows the impact of good ideas.
You mentioned in the past that it will take time for the improved and
expanded product range to become fully visible in the trade. Where are you
with that?
It’s different from market to market. It’s obvious with the success of lifestyle footwear that many retailers
wanted it very quickly and adopted it. But there are categories where we still don’t have the space we
believe we should. We do think we are competitive, and there are many markets where we should be able
to increase our space in the store and on the shelf. But as always, the retailers decide on who they
allocate space to. If they do that rationally, they will allocate space to those who give them the highest
contribution per square meter, and we think we can do that. We made huge progress in the last three
years, but if you look at running for example, there are places around the world where we still have very
little distribution, which again shows the huge opportunity we have in our hands.
How did listening to the retail partners and working closer with them
change the assortment and how the brand shows up in the stores?
For me, listening to our retail partners is crucial. If you sit in headquarters and decide what should be in all
the stores around the world, it’s simply not going to work. We have an open dialogue with consumers, with
athletes, and with our retailers across the different markets. Our market teams have been very active in
engaging with our retailers, and we have opened all our creation centers to work with them. We’ve seen
improvements in that process, but it can always be better. We are getting very positive feedback from the
retailers on the way we work, and how the flexibility and the speed of our creation teams have improved.
We are on a very, very good way of giving this fantastic adidas brand the right platform to be market leader
in many markets.
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What has also grown is the roster of partners around the world, from global
partners like Liverpool FC to more local ones like Penn State or Gilas
Pilipinas, the national basketball team of the Philippines. What role do these
partners play for adidas?
If you don’t showcase the brand with relevant partners, it will disappear over time. Our philosophy is that
adidas should be visible and relevant. There are certain sports and partners that are very global, like
football and Liverpool, and there are partners that are very local. Authentic partnerships that give us organic
visibility are more important than paid media campaigns. That’s why we are investing a lot in partnerships,
both globally and locally – not only in sports, but in whatever is culturally relevant for the consumer in the
different markets. It can be in fashion, it can be in music, and it can be in other areas that the consumer
thinks is relevant.
2025 saw the return of adidas into motorsports. How did that go and what’s
going to happen next?
F1 is growing globally when it gets to viewership. And the viewership is getting younger and younger and
they’re both female and male. We made the decision to team up with the Mercedes AMG Petronas F1 team
very quickly, and our team did an unbelievable job launching it. I think we went from handshake to having
products in the markets in under ten months. We now have one year behind us commercially, and it’s been
more successful than anybody expected. We have also added Audi Revolut and have just launched their
first collection, so that means we will have two teams for the upcoming season, and the reaction has been
great. With fans buying both merchandise and lifestyle products inspired by F1, there are big opportunities
to expand our business in the future.
You made some organizational changes in 2025 in order to move closer to
markets and consumers. Why were those changes required?
Given the uncertainty when it comes to the geopolitical situation and the unstable environment we operate
in, getting closer to the consumer and making sure that we work with the markets has become even more
important. So, we have strengthened our creative resources in the different regions and given the markets
more freedom in developing products, signing partners, and doing activations. I think the biggest success
story that we can show here is China. Firstly, our Chinese teams have a lot of creative people. Secondly,
they have factories next door, so they can design, develop, and source product on a shorter lead time.
Also, given the mono-branded retail environment, where we have around 8,000 adidas branded stores –
even if they are operated by wholesale partners – that gives us a different value chain to work with.
Empowering our markets to use their local setup to win the local consumer is a key reason for our current
success. And our global teams, of course, support it. But this means we also had to change our structures
and processes to reflect the reality of how we work, leading to changes and role reductions at our
headquarters in Herzogenaurach. It is very important for me to ensure that all changes are carried out with
the utmost respect and care for all employees. But there’s no choice. In order to be successful long-term,
we need to be agile and on our toes to be able to react as quickly as possible to changes. And this means
we have to put decision-making as close as we can to where these decisions need to be made.
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You’ve been in this industry for many years. How has the competitive
landscape changed and how attractive is the sporting goods industry today?
It depends on what time period you look at. If you go back to the beginning of my time in the industry,
European brands were dominating. Then we had the American brands coming up, that was the first big
change. Now we are seeing specialist brands coming up, focusing on just one or two categories, and local
players trying to go global. So the amount of competitors has increased. But the awareness and the
positiveness towards adidas has also increased. We are in a very, very attractive industry, because sports
in all its dimensions will continue to grow. I also think on the lifestyle side that casualization will never stop,
and I strongly believe that more and more people will be wearing sports shoes across all age groups
because they’re the most comfortable choice. All of this is of course very good for us, because we are in
many markets, we are in multiple categories, we have 76 years of history we can build on, and we have all
the resources to continue our success. So, I see a very positive industry development for us for the future.
Moving closer to the consumer locally is key to enabling our ability to successfully compete with all other
brands.
WHEN PEOPLE COME TOGETHER TO DO
SPORTS, THIS IS ALWAYS FANTASTIC
adidas’ market share is significantly higher than it was three years ago. How
much more potential is there to increase the market share?
The potential is different from market to market, depending on what the starting point is. But if you look at
our biggest competitor and its size compared to ours, then that should be answer enough. I can’t see any
market where we cannot gain substantial share over time. Given our relatively low market share in the US,
we have the ambition to double our business there. I just think we need to be more American and that’s
what we’re trying to do. The American team needs to invest in what is relevant for America. Outside of the
US we have the ambition of being market leader in all markets. That doesn’t mean that we will be it, but we
should have the ambition. And we need to understand what we need to do in every market to achieve this
ambition.
The US is a good segue to the next question. The FIFA World Cup 2026 will
be a huge event and a great platform. What are your expectations for the
brand and the business?
The World Cup is always a great event. It is the biggest sports event when it comes to viewership all over
the world. Football is the DNA of our brand, and being market leader, it is of huge importance to adidas.
And it’s a great platform to take football as a sport and highlight the cultural relevance of it. That’s why the
collection this year is so much wider than it’s been before. We clearly see that there is a football interest in
fashion and lifestyle that we have never seen before. We will focus on connecting to the US consumer, the
Mexican consumer, and the Canadian consumer. So far, the reaction to what we have showcased, and our
first product launches has been great. Aside from business, I really believe that the World Cup can be a
game changer when it comes to where the world is going, given the positive feelings that these events
bring. I strongly believe that sports is one of the few things that brings us all together. Let’s hope that the
World Cup will strengthen some of the conversations that are going on to create peace again.
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Other than the World Cup, what does success for adidas look like this year?
What are your priorities for 2026?
2026 is a year where we will continue the momentum that we have. There is no doubt that the potential of
this brand in this attractive market is to continue to grow a couple of billions every year. To do that on a
consistent basis, we need to keep developing our people and keep working on the way we execute. Not
only in front of the consumer, where we are very successful already. But also in the way we work. Just like
athletes, we will continue to work hard on us, we will continue to adapt our processes to the changing
environment so that we become an even better company and keep building an even stronger platform for
the future.
Talking about the future, what are your plans and goals for adidas in the
coming years?
I believe the next couple of years should show that adidas can take market leadership in a lot more
markets. I think that we will continue to outgrow the industry and take more market share, utilizing the
strength of our brand, our resources, our authenticity, our innovation, and our creativity. And to do that, we
need to be dedicated to our consumers and attract, develop, and keep the best people. Because I think in
this world where we talk a lot about AI and the tools that can make us better, we are still a people
business. We should never forget that the athlete is a person, the consumer is a person, and the employee
is a person. adidas is a great company to work with and to work for, and we are obsessed about fulfilling
the needs of consumers and athletes.
Last question: What are your personal goals for 2026 and beyond?
I enjoy what I do, also doing a lot of sports. I have a lot of energy for this great job, a lot of passion for this
fantastic brand, and I feel extremely privileged in what I do. So, my goal really is just to continue the great
journey we are on, give this brand what it deserves, and get this company to where it belongs.
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Executive Board1
Our Executive Board is composed of four members.
Each Board Member is responsible for at least one major function
within the company.
More information on the adidas Executive Board
►ADIDAS-GROUP.COM/EXECUTIVE-BOARD
Bjørn Gulden
Chief Executive Officer
Bjørn was born in Zurich, Switzerland, in 1965 and is a
Norwegian national. He obtained a Bachelor of Business
Administration from the University of Rogaland, Norway, as
well as an MBA from the Babson Graduate School of
Business, USA. Between 1992 and 1999, he held various
management positions at adidas in Herzogenaurach,
ultimately serving as Senior Vice President of Apparel and
Accessories. In 1999, Bjørn became Head of Product,
Marketing and Sourcing at Helly Hansen in Norway, and
remained on the company’s advisory board for several
years after his departure. From 2000, he was Managing
Director of the Deichmann Group and President/CEO of
Deichmann’s US-American subsidiary Rack Room Shoes.
From 2012 to 2013, Bjørn was Chief Executive Officer of
the Danish jewelry brand Pandora, and he went on to serve
as a Supervisory Board Member from 2013 to 2018. In
2013, he joined Puma SE in Herzogenaurach as CEO.
From 2014 to 2022, he was also a member of the
Supervisory Board of Borussia Dortmund GmbH & Co.
KGaA. Since January 1, 2023, Bjørn has been a member
of the Executive Board and CEO of adidas AG,
Herzogenaurach, Germany. He is also responsible for the
business area Global Brands as well as Global Sourcing.
Mandates:
─Chairman of the Board of Directors,
Salling Group A/S, Brabrand, Denmark
─Member of the Supervisory Board,
maxingvest GmbH & Co. KGaA, Hamburg, Germany2
─Member of the Supervisory Board,
Tchibo GmbH, Hamburg, Germany3
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1 Disclosure pursuant to ESRS 2, paragraphs 20a, 20c, 21a, and 21c.
2 Since July 1, 2025.
3 Until March 18, 2025.
Mathieu Sidokpohou
Chief Commercial Officer
Mathieu was born in Chaumont, France, in 1975, and is a
French national. He holds a Master’s degree in
Management from ESSEC Business School, France.
Mathieu started his professional career at Procter &
Gamble in 1999. He held various roles in product and
brand marketing in France and in Switzerland, with
European and global marketing responsibilities, as well as
in Singapore as Marketing and Business leader for APAC.
In 2015, Mathieu joined LVMH as Managing Director
Sephora SEAPAC. From 2018 to 2020, he held the
position of Global Vice President Dairy & Plant-Based at
Danone in France. In mid-2020, Mathieu started his career
at adidas as General Manager adidas France before
assuming responsibility for the Cluster South Europe as
General Manager as of 2021. In May 2023, he became
Managing Director of Europe, adidas’ largest market. In
November 2024, Mathieu was appointed to the Executive
Board, and he is responsible for Global Sales.
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Harm Ohlmeyer
Chief Financial Officer
Harm was born in Hoya, Germany, in 1968 and is a
German national. He holds a degree in Business Studies
from the University of Regensburg, Germany, as well as an
MBA from Murray State University, USA. Harm started his
career with adidas in 1998 and gained extensive
experience in the areas of Finance and Sales, including
responsibility as CFO TaylorMade-adidas Golf in Carlsbad,
USA, and Senior Vice President Finance adidas Brand and
Global Sales (adidas and Reebok). From 2011, he led the
company’s e-commerce business as Senior Vice President
Digital Brand Commerce. In 2017, Harm was appointed to
the Executive Board and subsequently became Chief
Financial Officer. In July 2023, he was appointed as Labor
Director, and he assumed additional responsibility for
Supply Chain and Tech in August 2024.
Mandates:
─Member of the Supervisory Board,
SV Werder Bremen GmbH & Co KG aA, Bremen,
Germany
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Michelle Robertson
Global Human Resources, People and Culture
Michelle was born in Aberystwyth, Wales, in 1975, and is
a British national. She holds a Postgraduate Diploma in
Human Resources (CIPD qualified) from the University of
Central Lancashire, UK. Michelle started her professional
career in the UK hospitality industry, where she worked in
different HR positions from 1995 onward. In 2004, she
joined Reebok as Head of HR Reebok UK & Ireland, in
Bolton, UK, later became Head of HR EMEA in Amsterdam,
the Netherlands, and, in 2010, went on to be Director HR
Global Brand Marketing at the Reebok HQ in Boston, USA.
In 2012, Michelle transitioned to adidas in
Herzogenaurach where she held various senior
management roles within HR with responsibility for Global
IT, Global Operations, Global Legal, and Global
Workplaces. In 2018, she became Senior Vice President
Workplaces & HR Global Functions. In 2020, Michelle
additionally took over the global Covid-19 crisis
management lead, and between 2022 and 2023, she also
acted as HR Business Partner for Global Brands. From
mid-2023, she led the company’s global Human
Resources organization as Head of Global HR. In 2024,
Michelle was appointed to the Executive Board and is
responsible for Global Human Resources, People and
Culture.
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Supervisory Board4
Thomas Rabe
CHAIRMAN
residing in Berlin, Germany
born on August 6, 1965
Member of the Supervisory Board since May 9, 2019
Chairman and Chief Executive Officer, Bertelsmann Management SE, Gütersloh, Germany
Chief Executive Officer, RTL Group S.A., Luxembourg, Luxembourg
Paul Francis Seline*
DEPUTY CHAIRMAN
residing in Erlangen, Germany
born on January 13, 1965
Member of the Supervisory Board since May 16, 2024
Chairman of the Works Council Herzogenaurach, adidas AG, Herzogenaurach, Germany
Nassef Sawiris
DEPUTY CHAIRMAN5
residing in Milan, Italy
born on January 19, 1961
Member of the Supervisory Board since June 15, 2016
Executive Chairman and Member of the Board of Directors, OCI N.V., Amsterdam, the Netherlands
Membership in comparable domestic and foreign controlling bodies of commercial enterprises:
─Vice Chairman, Fertiglobe Plc, Abu Dhabi, UAE
─Member of the Board of Directors, XRG P.J.S.C., Abu Dhabi, UAE6
Birgit Biermann*
residing in Bochum, Germany
born on December 26, 1973
Member of the Supervisory Board since September 1, 2022
Member of the Steering Committee, IGBCE, Hannover, Germany
Membership in other statutory supervisory boards in Germany:
─Member of the Supervisory Board, Merck KGaA, Darmstadt, Germany
─Member of the Supervisory Board, Lanxess AG, Cologne, Germany7
Linda Evenhuis*
residing in Herzogenaurach, Germany
born on December 3, 1973
Member of the Supervisory Board since May 16, 2024
Senior Lead Program and Facilitation (EMEA – GCA – APAC) Global HR Talent, adidas AG,
Herzogenaurach, Germany
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4 Disclosure pursuant to ESRS 2, paragraphs 20a, and 21b.
5 Since May 15, 2025.
6 Since January 1, 2025.
7 Since May 22, 2025.
* Employee representative.
Ian Gallienne
residing in Paris, France
born on January 23, 1971
Member of the Supervisory Board since June 15, 2016
Chairman of the Board of Directors8, Groupe Bruxelles Lambert, Brussels, Belgium
Membership in comparable domestic and foreign controlling bodies of commercial enterprises:
─Member of the Board of Directors, Pernod Ricard SA, Paris, France
─Member of the Board of Directors, SGS SA, Geneva, Switzerland
Mandates within the Groupe Bruxelles Lambert or in entities under common control with the Groupe
Bruxelles Lambert:
▪Member of the Board of Directors, Imerys SA, Paris, France
▪Member of the Board of Directors, Compagnie Nationale à Portefeuille SA, Loverval, Belgium
▪Member of the Board of Directors, Château Cheval Blanc, Société Civile, Saint-Émilion, France
▪Member of the Board of Directors, Financière De La Sambre, Loverval, Belgium
▪Member of the Board of Directors, Carpar SA, Loverval, Belgium
▪Chairman of the Board of Directors, FG Bros SA, Brussels, Belgium9
Jackie Joyner-Kersee
residing in Ballwin, Missouri, USA
born on March 3, 1962
Member of the Supervisory Board since May 12, 2021
CEO, Jackie Joyner-Kersee Foundation, and Motivational Speaker, East St. Louis, Illinois, USA
Christian Klein
residing in Mühlhausen, Germany
born on May 4, 1980
Member of the Supervisory Board since August 11, 2020
Chief Executive Officer, SAP SE, Walldorf, Germany
Bastian Knobloch*
residing in Bramsche, Germany
born on September 12, 1982
Member of the Supervisory Board since January 1, 2022
Chairman of the Works Council Campus North, adidas AG, Rieste, Germany
Oliver Mintzlaff
residing in Königswinter, Germany
born on August 19, 1975
Member of the Supervisory Board since May 16, 2024
CEO Corporate Projects & Investments, Red Bull GmbH, Fuschl am See, Austria
Petar Mitrovic*
residing in Fürth, Germany
born on May 2, 1975
Member of the Supervisory Board since May 16, 2024
Senior Manager Program Facilitation, Global HR Talent, adidas AG, Herzogenaurach, Germany
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8 Since May 2, 2025; formerly Chief Executive Officer, Groupe Bruxelles Lambert, Brussels, Belgium.
9 Since May 3, 2025.
* Employee representative.
Thomas Sapper*
residing in Nuremberg, Germany
born on December 20, 1966
Member of the Supervisory Board since May 16, 2024
Senior Director Tech Project Management, Technology Enablement Office, adidas AG, Herzogenaurach,
Germany
Harald Sikorski*
residing in Munich, Germany
born on May 28, 1966
Member of the Supervisory Board since May 16, 2024
District Manager Bavaria, Industrial Union IG Bergbau, Chemie, Energie (IGBCE), Munich, Germany
Membership in other statutory supervisory boards in Germany:
─Member of the Supervisory Board, Wacker Chemie AG, Munich, Germany
Membership in comparable domestic and foreign controlling bodies of commercial enterprises:
─Member of the Supervisory Board, Company for the Safeguarding of Miners’ Housing mbH, Essen,
Germany
Bodo Uebber
residing in Munich, Germany
born on August 18, 1959
Member of the Supervisory Board since May 9, 2019
Independent Management Consultant
Memberships in other statutory supervisory boards in Germany:
─Member of the Supervisory Board, Bertelsmann SE & Co. KGaA/Bertelsmann Management SE,
Gütersloh, Germany
─Chairman of the Supervisory Board, Flix SE, Munich, Germany
Jing Ulrich
residing in Stamford, Connecticut, USA
born on June 28, 1967
Member of the Supervisory Board since May 9, 2019
Managing Director and Vice Chairman, Investment Banking, JPMorgan Chase & Co., New York, USA
Membership in comparable domestic and foreign controlling bodies of commercial enterprises:
─Member of the Board of Directors, Swarovski International Holding AG, Männedorf, Switzerland10
Günter Weigl*
residing in Oberreichenbach, Germany
born on April 14, 1965
Member of the Supervisory Board since May 9, 2019
Senior Vice President Brand Partnerships, adidas AG, Herzogenaurach, Germany
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10 Since December 10, 2025.
* Employee representative.
Standing Committees as of May 15, 2025
Steering Committee:
Thomas Rabe (Chairman), Nassef Sawiris, Paul Francis Seline*
General Committee:
Thomas Rabe (Chairman), Birgit Biermann*, Linda Evenhuis*, Ian Gallienne, Nassef Sawiris, Paul Francis
Seline*
Audit Committee:
Bodo Uebber (Chairman), Christian Klein, Oliver Mintzlaff, Thomas Sapper*, Günter Weigl*
Nomination Committee:
Thomas Rabe (Chairman), Nassef Sawiris, Oliver Mintzlaff
Mediation Committee pursuant to § 27 section 3 Co-Determination Act (MitbestG):
Thomas Rabe (Chairman), Nassef Sawiris, Bastian Knobloch*, Paul Francis Seline*
Standing Committees until May 15, 2025
Steering Committee:
Thomas Rabe (Chairman), Ian Gallienne, Paul Francis Seline*
General Committee:
Thomas Rabe (Chairman), Birgit Biermann*, Linda Evenhuis*, Ian Gallienne, Nassef Sawiris, Paul Francis
Seline*
Audit Committee:
Bodo Uebber (Chairman), Christian Klein, Thomas Sapper*, Günter Weigl*
Nomination Committee:
Thomas Rabe (Chairman), Ian Gallienne, Oliver Mintzlaff
Mediation Committee pursuant to § 27 section 3 Co-Determination Act (MitbestG):
Thomas Rabe (Chairman), Ian Gallienne, Bastian Knobloch*, Paul Francis Seline*
Biographical information on our Supervisory Board members is available online.
►ADIDAS-GROUP.COM/SUPERVISORY-BOARD
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* Employee representative.
Supervisory Board Report
Dear Shareholders,
2025 was another successful year for adidas. The company continued to build on its positive momentum,
with growth broadening meaningfully across all dimensions of the business. Profitability also improved
further, supported by a sharp focus on healthy growth and consumer needs. Despite persistent and
elevated external uncertainty, which impacted investors and corporates alike, we were able to upgrade our
full-year guidance in the course of the year and once more deliver better-than-expected results. The key to
success in this volatile environment is the empowerment of our teams in the markets, which enables them
to create locally relevant products and activations and be agile and fast-to-market. Across the globe, we
deepened relationships with both retail and brand partners, supported by improved collaboration and a
simplified, more effective operating model. Together, these achievements have laid a strong foundation for
sustainable profitable growth within a structurally attractive industry in the years ahead.
Supervision and advice in dialogue with the Executive Board
In the year under review, we performed all of our tasks laid down by law, the Articles of Association, the
German Corporate Governance Code (‘Code’), and the Rules of Procedure carefully and conscientiously, as
in previous years. We regularly advised the Executive Board on the management of the company and
diligently and continuously supervised its management activities. The Executive Board involved us directly
and in a timely and comprehensive manner in all of the company’s fundamental decisions.
The Executive Board informed us extensively and regularly through written and oral reports. This information
covered all relevant aspects of the company’s strategic direction, business planning (including finance,
investment, and personnel planning), the business development, and the company’s financial position and
profitability. We were also kept up to date on matters relating to accounting processes, the risk situation,
the adequacy and further development of the Internal Control and Risk Management Systems, and
compliance as well as all major decisions and business transactions. Furthermore, the Executive Board
always reported immediately and thoroughly on any deviations in business performance from the plans. In
the year under review, such deviations were attributable, in particular, to the better-than-expected business
development, the uncertainties and additional costs due to the US tariffs, and unfavorable currency effects.
Furthermore, to prepare for our meetings, we received regular comprehensive written reports from the
Executive Board. Thus, we always had the opportunity to critically analyze the Executive Board’s reports and
resolution proposals within the committees and with the entire Supervisory Board and to put forward
suggestions before passing resolutions based on in-depth examination and thorough consultation. At the
Supervisory Board meetings, the Executive Board was available for discussions and to answer our
questions. In the periods between our meetings, the Executive Board also provided us with extensive
monthly reports on the current business situation. We critically examined and scrutinized the information
provided by the Executive Board.
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Meetings of the Supervisory Board and its committees
In the past financial year, the Supervisory Board primarily exercised its duties in plenary meetings.
Members who were unable to participate in the meetings took part in the resolutions by submitting their
votes in writing. In the year under review, the meetings of the Supervisory Board and its committees took
place both as physical and virtual meetings. The latest videoconferencing technology was used to ensure
an open and appropriate discussion between the Executive Board and the Supervisory Board within the
virtual meetings.
Supervisory Board
3
5
Nomination Committee
2
1
General Committee
2
1
Audit Committee
1
3
Type of meeting
Virtual meeting
Physical meeting
The external auditor, PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft (‘PwC’), Frankfurt am
Main, Germany, attended the meetings of the Supervisory Board as part of the Executive Board’s financial
reporting to the Supervisory Board, insofar as no Executive Board matters and internal matters of the
Supervisory Board and Executive Board were discussed. Furthermore, PwC attended all meetings of the
Audit Committee.
In the periods between meetings, the Chairman of the Supervisory Board and the Chairman of the Audit
Committee maintained regular contact with the Chief Executive Officer and the Chief Financial Officer,
conferring on matters such as the company’s strategic orientation, business planning and development, the
risk situation, and control and risk management as well as compliance. In addition, if required, including at
short notice, the Chairman of the Supervisory Board and, when necessary, the entire Supervisory Board,
were informed about events of fundamental importance to the evaluation of the situation, development,
and management of the company. During the Supervisory Board and committee meetings, the Chairman of
the Supervisory Board and the Chairman of the Audit Committee regularly reported on discussions with the
Executive Board outside the meetings.
The Supervisory Board also convened regularly without the Executive Board members, in particular to
discuss internal affairs of the Supervisory Board as well as personnel and compensation matters relating to
the Executive Board. The Audit Committee also followed recommendation D.10 of the Code and regularly
consulted with the auditor in the Audit Committee meetings without the Executive Board.
In this year under review, too, the participation rate of the Supervisory Board and its committees was
constantly high, totaling approximately 97% (2024: approximately 96%) with regard to the Supervisory
Board meetings and thus exceeding the targeted minimum participation rate of 75%.
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Members of the Supervisory Board as at December 31, 2025
Thomas Rabe, Chairman
14
14
100%
Nassef Sawiris, Deputy Chairman
13
13
100%
Paul Francis Seline, Deputy Chairman
11
11
100%
Birgit Biermann
11
10
91%
Linda Evenhuis
11
11
100%
Ian Gallienne
12
11
92%
Jackie Joyner-Kersee
8
8
100%
Christian Klein
12
9
75%
Bastian Knobloch
8
8
100%
Oliver Mintzlaff
14
14
100%
Petar Mitrovic
8
8
100%
Thomas Sapper
12
12
100%
Harald Sikorski
8
8
100%
Bodo Uebber
12
12
100%
Jing Ulrich
8
8
100%
Günter Weigl
12
12
100%
Individual meeting participation of the Supervisory Board members
Number of
meetings
Participation
Participation
rate
Tasks and topics for the entire Supervisory Board
In the year under review, there were eight meetings of the entire Supervisory Board (2024: eight meetings).
Moreover, three resolutions were passed by way of a circular resolution.
The following subject matters were regularly discussed within the entire Supervisory Board after thorough
presentations by the Executive Board: the development of sales, earnings, and the employment situation,
the financial position of the company, and the business development of the company’s individual
operations and markets. As the focus was on sustainable net sales growth and increasing operating profit,
key topics in the year under review were the business development in the major markets and sales
channels, the order book development and the sell-through of our products, the uncertainties and additional
costs connected with the US tariffs, and currency effects as well as macroeconomic and geopolitical risks.
In addition, we dealt intensively with the major legal disputes and official proceedings, brand and product
topics, current marketing campaigns, and adidas’ key partnerships. ESG topics and related regulation were
further regular topics of discussion at the Supervisory Board meetings. The work and development of the
adidas Foundation, data privacy, and the preparation of the Supervisory Board elections were also
discussed. Moreover, the Executive Board informed us about the status of and developments within the
Human Resources organization, in particular with regard to the new approach to performance management.
Furthermore, the strategic orientation of adidas as a global brand with a local mindset, and the related
transfer of increased responsibilities to the markets and reduction of complexity as well as collective
bargaining topics in Germany, including the collaboration with the Mining, Chemical and Energy Industries
Union (Industriegewerkschaft Bergbau, Chemie, Energie – IGBCE) were discussed. As regards personnel
matters within the Executive Board, general succession planning and reviewing the compensation system
for the Executive Board were the major topics.
Due to statutory regulations and the Rules of Procedure, certain transactions and measures of the
Executive Board require the Supervisory Board’s approval. The Supervisory Board discussed transactions
requiring its approval as they arose, approving resolution items after thorough review, in some cases based
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on preparations by the relevant committees. In addition, the Supervisory Board regularly discussed
Executive Board personnel and compensation matters as well as questions of corporate governance.
►ADIDAS-GROUP.COM/COMPENSATION ►SEE DECLARATION ON CORPORATE GOVERNANCE
In the February meeting, we focused on the preliminary results for the 2024 financial year and the
company’s business situation. In addition, the Executive Board presented the Budget Plan for the 2025
financial year. Following a thorough discussion, the Supervisory Board approved the Budget Plan as
presented. Moreover, we discussed adidas’ strategic orientation (‘global brand with a local mindset’ and
reduction of internal complexity), its implementation in the various markets, and the reduction of roles and
positions at headquarters in Herzogenaurach. With regard to the searches at adidas locations in connection
with customs- and tax-related provisions for importing products into Germany, the Executive Board outlined
the current status. Furthermore, we discussed the dividend proposal with the Executive Board. Another
focus topic was Executive Board compensation. After determining the degree of target achievement and
thoroughly reviewing the individual performance of the Executive Board members, we determined the
variable compensation to be paid to the Executive Board members for the 2024 financial year. Moreover,
following an internal appropriateness assessment, the Executive Board compensation was assessed to be
appropriate, and the Declaration on Corporate Governance was approved.
In the balance sheet meeting in March, the Executive Board reported on the financial results for the past
financial year as well as on the audit of the 2024 annual financial statements and consolidated financial
statements. Before the Supervisory Board passed its resolution, the auditor reported on the material
results of the audit, including the results of the audit of the content of the non-financial statement
commissioned by the Supervisory Board in accordance with § 111 section 2 sentence 4 of the German
Stock Corporation Act (Aktiengesetz – AktG). In connection with the non-financial statement, the auditor
reported, in particular, on the implementation of the Corporate Sustainability Reporting Directive (‘CSRD’)
and the European Sustainability Reporting Standards (‘ESRS’), which were applied for the first time in the
2024 financial year on a voluntary basis. After in-depth examination of the financial statements and based
on the auditor’s report and the Audit Committee report on the audit results, the Supervisory Board approved
the annual financial statements and consolidated financial statements as well as the combined
Management Report including the non-financial statement for adidas AG and the adidas Group. The annual
financial statements were thus adopted. The Executive Board also outlined the Company’s current business
situation and the guidance for 2025. We also deliberated on adidas brand and product topics, current
marketing campaigns, key partnerships, compliance, and the major legal disputes of adidas as well as ESG
and sustainability topics. Moreover, we approved the Supervisory Board Report to the Annual General
Meeting as well as the proposed resolutions to be submitted to the 2025 Annual General Meeting,
including the proposal on the appropriation of retained earnings for the 2024 financial year. We also
conferred on the Supervisory Board elections in 2025. After thorough deliberations, the Supervisory Board
approved the candidate proposals for the Supervisory Board elections to be presented to the 2025 Annual
General Meeting prepared by the Nomination Committee. Another focus topic was Executive Board
compensation. The criteria and targets for the variable performance-related compensation of the Executive
Board members for the 2025 financial year prepared by the General Committee were thoroughly discussed
and then determined by the Supervisory Board. Moreover, the Compensation Report for the 2024 financial
year was approved. Finally, we resolved amendments to the Business Allocation Plan for the Executive
Board as well as the Rules of Procedure of the Supervisory Board and the Audit Committee regarding the
increase in the number of Audit Committee members to five people. In this regard, Oliver Mintzlaff was
elected as a further member of the Audit Committee.
Moreover, by way of a circular resolution in March, the Supervisory Board approved Bjørn Gulden’s
supervisory board mandate at maxingvest GmbH & Co. KGaA, Hamburg, Germany. In this regard, he
relinquished his supervisory board mandate at Tchibo GmbH.
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The May meeting, which took place on the evening before the Annual General Meeting, centered around the
business performance at the time as well as adidas brand and product topics, the latest marketing
campaigns, and key partnerships. In this regard, the strategic orientation in particular (‘global brand with a
local mindset’) and its implementation in the various markets through local activities and products were
presented. Moreover, we thoroughly discussed the financial results for the first quarter of 2025. One focus
topic was the impact of the US tariffs, the related macroeconomic risks and uncertainties, and the
measures taken by adidas. We were also given a presentation on the adidas Foundation and discussed the
Foundation’s organizational structure, the major milestones, the projects to be supported, and the long-
term goals and ambitions. Furthermore, we were informed about the expected main topics and questions at
the Annual General Meeting. Finally, we approved the amendments to the Business Allocation Plan for the
Executive Board. After the Supervisory Board meeting, the Supervisory Board and the Executive Board
visited the product exhibitions for the FIFA World Cup 2026 and Spring/Summer 2026.
During the constituent meeting of the Supervisory Board directly after the Annual General Meeting, the
Supervisory Board elected Thomas Rabe as Chairman of the Supervisory Board, Paul Francis Seline as First
Deputy Chairman, and Nassef Sawiris as Additional Deputy Chairman. Due to the change in Additional
Deputy Chairman, the committee members were also newly elected.
In June, an update of the Declaration of Compliance 2024 was approved in accordance with § 161 AktG by
way of a circular resolution.
In our meeting in late July, we discussed, in particular, the financial results for the second quarter and the
first half of 2025 and the outlook for the 2025 financial year. In this regard, we deliberated with the
Executive Board on the status of the expected impact of the US tariffs. Moreover, we discussed the
competitive situation and were given an overview of brand and product topics, the latest marketing
campaigns, and key partnerships. In view of marketing and ‘brand heat,’ the Executive Board reported, in
particular, on the successes at the Women’s EURO 2025, and commented in detail on the most important
globally relevant categories (Football, Running, Training, Basketball), new products in the Performance and
Lifestyle areas, and adidas’ strategic orientation. Moreover, the Chairman of the Audit Committee outlined
the discussions in the Audit Committee on ESG topics and sustainability reporting. Finally, the Supervisory
Board was informed about the status of selected legal disputes and proceedings, and training opportunities
for the Supervisory Board members.
In the Supervisory Board meeting in October, the focus was on discussing the current business situation,
particularly in view of the impact of the US tariffs, the order book development, and the preliminary financial
results for the third quarter. Furthermore, the Executive Board presented the workforce development,
collective bargaining topics, and the internal salary adjustments made by adidas in Germany. The Executive
Board also outlined the operating model changes in view of the strategic orientation, the related further
reduction of previously identified roles and positions, and the new approach to performance management
at adidas. Moreover, we were given an overview of the latest adidas brand and product topics, marketing
campaigns, and key partnerships, especially in view of the most important globally relevant categories
(Football, Running, Training, Basketball). We also discussed the strategic significance of AI and various
potential areas of application for AI within the company. Finally, we prepared the self-assessment of the
Supervisory Board (efficiency examination) and its committees.
In an extraordinary Supervisory Board meeting in early November, the Executive Board and Supervisory
Board discussed statements made by IGBCE.
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In the December meeting, we focused on the preliminary Budget Plan for the 2026 financial year presented
by the Executive Board as well as on material marketing and sponsorship agreements. After a thorough
review, we approved the final Budget Plan presented to us for resolution in early 2026. Furthermore, the
Executive Board gave a thorough report on the current business situation and the outlook for the year under
review, including an assessment of the impact of the US tariffs, and macroeconomic and geopolitical risks.
We also focused on the Executive Board’s reports on adidas brand and product topics, current marketing
campaigns, and key partnerships. We also deliberated on the assessment of the Supervisory Board
members’ independence, resolved the Declaration of Compliance with the German Corporate Governance
Code, and reviewed the objectives of the Supervisory Board regarding its composition (incl. the competency
profile). Furthermore, we discussed the fulfillment of the statutory gender quota in the Supervisory Board
stipulated in § 96 section 2 sentences 1, 3, and 4 AktG. In view of the Supervisory Board elections of the
shareholder representatives at the 2026 Annual General Meeting, the shareholder representatives resolved
pursuant to § 96 section 2 sentence 3 AktG that the minimum quota of 30% women and 30% men on the
Supervisory Board has to be fulfilled separately. Moreover, the Supervisory Board was thoroughly informed
about the succession planning for the Executive Board and Supervisory Board as discussed in the General
Committee and Nomination Committee as well as potential adjustments of the compensation system for
the Executive Board. We also discussed the results of the self-assessment (efficiency examination) of our
work. Based on the self-assessment results, we derived selective measures to improve the Supervisory
Board’s work. In general, the self-assessment results confirmed that the work of the Supervisory Board and
its committees is highly efficient. The Supervisory Board also discussed a transaction requiring Supervisory
Board approval and resolved upon it by way of circular resolution. Following the Supervisory Board meeting,
the Supervisory Board and the Executive Board attended a workshop on innovation at adidas and product
exhibitions.
Tasks and topics in the committees
In order to perform our tasks in an efficient manner, we have established a total of five standing
Supervisory Board committees. The committees prepare resolutions and topics for the meetings of the
entire Supervisory Board. Within the legally permissible framework and in appropriate cases, we have
furthermore delegated the Supervisory Board’s authority to pass certain resolutions to individual
committees. With the exception of the Audit Committee, the Chairman of the Supervisory Board also chairs
all the standing committees. The respective committee chairmen report to the Supervisory Board on their
work as well as the content and results of the committee meetings on a regular and comprehensive basis.
The Steering Committee did not meet in the year under review.
The General Committee held three meetings in the year under review (2024: five meetings). The main task
of the General Committee was to prepare resolutions for the entire Supervisory Board on personnel and
compensation matters of the Executive Board. Regarding Executive Board compensation, the General
Committee mainly drafted proposals for resolutions on the targets, the target achievement, and the amount
of the variable performance-related compensation, and pre-examined the appropriateness of the Executive
Board compensation. Moreover, the General Committee dealt with the succession planning for the
Executive Board, the compensation report for the year under review, the revision of the compensation
systems for the members of the Executive Board and the Supervisory Board, and the resulting amendments
of the Executive Board service contracts. The General Committee also discussed the feedback from the
roadshows with investors on compensation and governance topics and the long-term succession planning
for the Executive Board.
The Audit Committee held four meetings in the year under review (2024: four meetings). The Chief
Financial Officer and the auditor were present at all meetings and reported to the committee members in
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detail. The Audit Committee followed the recommendation of the Code and regularly consulted with the
auditor in the Audit Committee meetings without the Executive Board being present.
In addition to monitoring the accounting process, the committee’s work focused on the audit of the 2024
annual financial statements and consolidated financial statements, including the combined Management
Report and the non-financial statement of adidas AG and the Group, as well as the proposal regarding the
appropriation of retained earnings. Following a detailed presentation of the audit reports by the auditor, the
Audit Committee decided to recommend that the Supervisory Board approve the 2024 annual financial
statements and consolidated financial statements. Furthermore, the Audit Committee prepared the audit of
the non-financial statement.
In the year under review, the Audit Committee thoroughly discussed the continued development and
monitoring of the effectiveness and adequacy of the Risk Management System, the Internal Audit System,
the Internal Control System, and the Compliance Management System. Other matters of thorough
deliberation were the assignment of the audit mandate to the auditor and the determination of the audit
fees and key audit matters. Furthermore, the Audit Committee commissioned the auditor with the limited
assurance audit of the content of the non-financial statement, which was prepared in line with the ESRS. In
addition, the Audit Committee monitored the auditor’s independence and qualification, while also taking
into account the non-audit services provided by the auditor. With regard to assessing the quality of the
audit, the Audit Committee determined on the basis of, inter alia, an internal quality review that there were
no indications of insufficient quality of the 2024 audit. The Audit Committee discussed the quarterly
financial results and the half-year financial report. Furthermore, in the year under review, the Audit
Committee thoroughly dealt with the audit plan and the risk management report. In each committee
meeting, the Audit Committee was also informed about the findings and developments of the Internal Audit
department and current cases and developments in the area of compliance.
Moreover, topics such as data privacy and information security as well as ESG, sustainability topics, and
sustainability reporting at adidas were discussed during the Audit Committee meetings. Global Business
Services, the key audit findings of Internal Audit, and the S4/HANA implementation at adidas were further
topics of discussion. The Audit Committee also deliberated on the tax strategy and the audit requirements
to be observed by the Supervisory Board for the public country-by-country reporting (pCbCR). In February, the
Audit Committee decided by way of a circular resolution to commission the (limited assurance) audit of the
combined non-financial statement in the Group Management Report for the 2024 financial year, as the EU
directives regarding sustainability reporting (CSRD) had not yet been implemented.
The Nomination Committee held three meetings in the year under review (2024: two meetings). The focus
topic both of meetings and of deliberations in the period between the meetings was the preparation of the
Supervisory Board’s proposals for the election of the Supervisory Board members representing the
shareholders to the 2025 and 2026 Annual General Meetings. Following thorough discussions, specific
candidate proposals were prepared that took into account the competency and diversity profile defined by
the Supervisory Board, and the qualification matrix for the Supervisory Board members, the statutory
requirements for the candidates’ suitability and independence, and the applicable recommendations of the
Code as well as investor expectations and feedback.
Furthermore, the Nomination Committee discussed the general succession planning for the Supervisory
Board, in particular for the position of the Chairman of the Supervisory Board, which included consideration
of investor expectations. This also comprised a thorough review of the Supervisory Board’s objectives
regarding its composition, the Supervisory Board’s competency and diversity profile, and the independence
and availability of the Supervisory Board members. The Nomination Committee concluded that all members
of the Supervisory Board generally have sufficient time to perform their tasks. Finally, the Nomination
Committee prepared resolution proposals for the Supervisory Board.
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As in previous years, the Mediation Committee, established in accordance with the German Co-
Determination Act (Mitbestimmungsgesetz – MitbestG), did not have to be convened in the year under
review.
Election and composition of the Supervisory Board
At the end of the Annual General Meeting on May 15, 2025, Thomas Rabe’s term of office expired. Thomas
Rabe was elected to the Supervisory Board for the period until the end of the 2026 Annual General Meeting
by the shareholders and, during the constituent Supervisory Board meeting directly after the Annual General
Meeting, as Chairman of the Supervisory Board by the Supervisory Board members.
Furthermore, Ian Gallienne resigned as Additional Deputy Chairman at the end of the Annual General
Meeting on May 15, 2025. The Chairman and his two Deputies as well as the committee members were
elected at the constituent meeting of the Supervisory Board. Paul Francis Seline was elected as First
Deputy Chairman and Nassef Sawiris was elected as Additional Deputy Chairman of the Supervisory Board.
Moreover, at the Supervisory Board meeting on March 4, 2025, Oliver Mintzlaff was elected as a further
member of the Audit Committee. There were no other changes in the Audit Committee.
►SEE SUPERVISORY BOARD
With regard to the representation of women and men, the Supervisory Board complies with the statutory
minimum quota pursuant to § 96 section 2 sentence 1 AktG. Prior to the resolution on the election
proposals, the shareholder representatives had resolved that the minimum quota of 30% women and 30%
men on the Supervisory Board should be fulfilled separately for the shareholder representatives and the
employee representatives in accordance with § 96 section 2 sentence 3 AktG.
The members of the Supervisory Board are individually responsible for undertaking any necessary training
and further education measures required for their tasks. To assist them in their role, the company offers
new Supervisory Board members or members who assume new responsibilities an introduction to the work
of the Supervisory Board and/or to new areas of responsibility within adidas AG. In this regard, the
Supervisory Board members receive a detailed introduction to the business and subject areas that are
relevant for their particular tasks. Oliver Mintzlaff, the new Audit Committee member, participated in
comprehensive introductory sessions in the areas of, inter alia, accounting, internal control and risk
management systems, compliance, and ESG. The company also informed the Supervisory Board regularly
about current legislative changes, particularly with regard to the increasing regulation of ESG topics and
sustainability reporting, and about opportunities for external training, and provided relevant specialist
literature.
Changes on the Executive Board
In the year under review, there were no changes on the Executive Board.
►SEE EXECUTIVE BOARD
Corporate governance
The Supervisory Board regularly monitors the application and further development of the corporate
governance regulations within the company, in particular the implementation of the regulations of the Code.
The Supervisory Board and its committees dealt with the corporate governance requirements of the German
Stock Corporation Act and the Code at their meetings. Further detailed information on corporate governance
within the company is set out in the Declaration on Corporate Governance.
►SEE DECLARATION ON CORPORATE GOVERNANCE
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Following thorough deliberations, the current Declaration of Compliance pursuant to § 161 AktG was
resolved by the Executive Board and the Supervisory Board of adidas AG in December 2025 and was made
permanently available on our website.
►ADIDAS-GROUP.COM/CORPORATE-GOVERNANCE
In the year under review, there were no conflicts of interest among the members of either the Supervisory
Board or the Executive Board. In the opinion of the Supervisory Board, the brand ambassador agreement
between adidas and the Supervisory Board member Jackie Joyner-Kersee does not constitute a conflict of
interest with regard to her role on the Supervisory Board. Furthermore, in the year under review, the
Supervisory Board approved a transaction with a company in which a Supervisory Board member holds a
management position. The Supervisory Board member in question did not participate in the discussions on
the matter or in the voting on the respective resolution.
Examination of the annual financial statements and consolidated financial statements
Following the Supervisory Board’s proposal, which was based on the Audit Committee’s recommendation,
the 2025 Annual General Meeting appointed PwC as auditor and Group auditor for the 2025 financial year.
Prior to this, PwC had confirmed to both the Supervisory Board and the Audit Committee that there were no
circumstances which could prejudice their independence as auditor or which could cast doubt on PwC’s
independence. In this respect, PwC also declared the extent to which non-audit services were rendered for
the company in the previous financial year or were contractually agreed for the following year.
PwC audited the 2025 consolidated financial statements prepared by the Executive Board in accordance
with § 315e of the German Commercial Code (Handelsgesetzbuch – HGB) in compliance with the IFRS
Accounting Standards, as they are to be applied in the European Union, and issued an unqualified opinion
thereon. The auditor also approved without qualification the 2025 annual financial statements of
adidas AG, prepared in accordance with HGB requirements, and the combined Management Report for
adidas AG and the Group. Furthermore, as commissioned by the Supervisory Board, PwC audited the non-
financial statement. The financial statements, the proposal on the appropriation of retained earnings, and
the reports of the auditor on the annual financial statements and consolidated financial statements were
distributed by the Executive Board to all Supervisory Board members in a timely manner.
The financial statements were examined in depth, with a particular focus on legality and regularity, in the
presence of the auditor in the Audit Committee meeting held on March 2, 2026, and in the balance sheet
meeting of the Supervisory Board on March 3, 2026, during which the Executive Board explained the
financial statements in detail. In both meetings, the auditor reported on the material results of the audit,
inter alia with regard to the audit focus points agreed and key audit matters, and was available for
questions, providing additional information. The auditor did not report any significant weaknesses of the
Internal Control and Risk Management Systems with regard to the accounting process. Prior to the passing
of the resolution, the auditor reported on the results of the audit of the content of the non-financial
statement with limited assurance, as commissioned by the Audit Committee. In addition, the Supervisory
Board thoroughly discussed and approved the Executive Board’s proposal concerning the appropriation of
retained earnings for the 2025 financial year.
Based on our own examinations of the annual financial statements and consolidated financial statements
(including the non-financial statement), we concluded that there are no objections to be raised. Therefore,
following the recommendation of the Audit Committee, the Supervisory Board agreed with the auditor’s
audit results and approved the financial statements prepared by the Executive Board, including the non-
financial statement, for the 2025 financial year. The annual financial statements were thus adopted. PwC
has been acting as auditor and Group auditor for adidas AG since the 2023 financial year. As the
responsible audit partners since the 2023 financial year, the auditors Rainer Kroker and Christian Landau
have signed the financial statements.
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Expression of thanks
On behalf of the entire Supervisory Board, I wish to thank the current Executive Board and all our
employees around the world for their great personal dedication and ongoing commitment. I would also like
to express my gratitude for the enduring trust and cooperation between the employee and shareholder
representatives on the Supervisory Board.
For the Supervisory Board
THOMAS RABE
CHAIRMAN OF THE SUPERVISORY BOARD
March 2026
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Declaration on Corporate Governance
Corporate governance stands for responsible, transparent corporate management and control geared
toward a long-term increase in value. We are convinced that good corporate governance is an essential
basis for sustainable corporate success and strengthens the trust placed in our company by our
shareholders, business partners, and employees, as well as the financial markets.
Declaration of the adidas AG Executive Board and Supervisory Board
regarding the German Corporate Governance Code pursuant to § 161
German Stock Corporation Act (Aktiengesetz – AktG)
The adidas AG Executive Board and Supervisory Board issued their last Declaration of Compliance with the
German Corporate Governance Code pursuant to § 161 AktG in December 2024 and made an intra-year
change in June 2025. The following declaration refers to the recommendations of the ‘Government
Commission on the German Corporate Governance Code’ in the version of April 28, 2022, published in the
Federal Gazette on June 27, 2022 (‘Code’).
The adidas AG Executive Board and Supervisory Board declare that since the publication of their last
complete Declaration of Compliance in December 2024, the recommendations of the Code have been and
are met with the following exceptions:
Recommendation C.5 Alternative 1
As already declared in June 2025, the Supervisory Board member Ian Gallienne no longer serves as Chief
Executive Officer of Groupe Bruxelles Lambert (‘GBL’) since May 2025 but now holds the position of
Chairman of the Board of Directors of GBL. Consequently, there is no longer any (precautionary) deviation
from recommendation C.5 of the Code.
Recommendation C.5 Alternative 2
The Chairman of the Supervisory Board, Thomas Rabe, is also Chief Executive Officer of the listed company
RTL Group S.A., Luxembourg. In this respect, the company deviates from recommendation C.5 alternative 2
of the Code. However, the Supervisory Board is convinced that Thomas Rabe’s mandate at RTL Group S.A.
does not affect the due performance of his duties as Chairman of the Supervisory Board. In particular, the
Supervisory Board has assured itself that Thomas Rabe has sufficient time to perform his duties.
Herzogenaurach, December 2025
For the Executive Board
For the Supervisory Board
BJØRN GULDEN
THOMAS RABE
Chief Executive Officer
Chairman of the Supervisory Board
The aforementioned Declaration of Compliance has been published on and can be downloaded from our
website.
►ADIDAS-GROUP.COM/CORPORATE-GOVERNANCE
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Dual board system
As a globally operating stock corporation with its registered seat in Herzogenaurach, Germany, adidas AG is
subject to, inter alia, the provisions of German stock corporation law. A dual board system, which assigns
the management of the company to the Executive Board and advice and supervision of the Executive Board
to the Supervisory Board, is one of the fundamental principles of German stock corporation law. These two
boards are strictly separated in terms of both members and competencies. However, both boards
cooperate closely in the interest of the company.
Composition and working methods of the Executive Board
The composition of our Executive Board, which consists of four members, reflects the international
structure of our company.
The Executive Board is responsible for independently managing the company with the aim of sustainable
value creation in the best interest of the company, developing the company’s strategic orientation,
coordinating it with the Supervisory Board, and ensuring its implementation. Furthermore, it determines
business objectives, the corporate policy, and the organization of the Group. In this respect, the Executive
Board also systemically assesses risks and opportunities for the company linked with social and
environmental factors as well as the environmental and social impact of its business activities. Moreover,
the Executive Board is responsible for preparing the quarterly statements, the half-year report, and the
annual financial statements and consolidated financial statements as well as the combined Management
Report of adidas AG and the Group. Furthermore, the Executive Board prepares a combined non-financial
statement for the company and the Group in accordance with the Corporate Sustainability Reporting
Directive (‘CSRD’) and the European Sustainability Reporting Standards (‘ESRS’). Additionally, the Executive
Board ensures responsible management of business resources as well as compliance with and observance
of legal provisions and internal regulations by the Group companies. For this purpose, the Executive Board
sets up an Internal Control System and Risk Management System that is adequate and effective in view of
the scope of business activities and the company’s risk situation, which comprises a Compliance
Management System aligned to the company’s risk situation and also covers sustainability-related
objectives. The Executive Board also provides employees with the opportunity to report, in an appropriate
and protected manner, suspected legal infringements within the company. It is tied to the company's
interests and obligated to strive for a sustainable increase in the company’s value.
Notwithstanding the Executive Board’s joint responsibility for managing the company, the Executive Board
members are individually responsible for managing their respective operations in accordance with the
Business Allocation Plan for the Executive Board. There are no Executive Board committees. The Chief
Executive Officer represents the Executive Board and the company and is in charge of the overall
management and development of the company, including cooperation with the Supervisory Board, as well
as coordination and supervision of the Executive Board members’ work, the Executive Board areas,
operations, brands, and markets. The Executive Board members continuously report to the Chief Executive
Officer and to each other about all significant developments in their respective business areas and
coordinate with each other on all cross-functional measures. Collaboration within the Executive Board is
further governed by the Rules of Procedure of the Executive Board and the Business Allocation Plan. These
documents specifically stipulate requirements for meetings and resolutions as well as for cooperation with
the Supervisory Board.
The Executive Board and Supervisory Board cooperate closely and trustfully for the benefit of the company.
The Executive Board reports to the Supervisory Board regularly, extensively, and in a timely manner on all
matters relevant to the company’s strategy, planning, business development, financial position, and
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compliance, as well as on material business risks. Fundamental questions related to the corporate strategy
and its implementation are thoroughly discussed and aligned with the Supervisory Board.
The composition of the Executive Board is determined by the Supervisory Board. The Supervisory Board is
committed to promoting a culture of diversity at adidas. Diversity is understood in the broadest sense,
including age, gender, cultural origin, nationality, educational background, professional qualifications, and
experience.
Greater diversity on the Executive Board will help secure the long-term success of adidas by taking diverse
perspectives into account. For this reason, the Supervisory Board has adopted a diversity concept. In
addition, an age limit of 67 years applies for Executive Board members.
The General Committee of the Supervisory Board already takes the diversity concept into account when
selecting candidates for Executive Board positions. Every decision by the Supervisory Board on the
composition of the Executive Board is made in the best interests of the company and with due
consideration of all circumstances in each individual case. In the Supervisory Board’s opinion, the current
composition of the Executive Board meets the diversity concept mentioned above.
As at the balance sheet date, no member of the Executive Board has accepted a Supervisory Board chair or
more than two Supervisory Board mandates in non-group listed companies or in supervisory bodies of non-
group companies with comparable requirements.
►SEE EXECUTIVE BOARD
Composition and working methods of the Supervisory Board
Our Supervisory Board consists of 16 members. It comprises eight shareholder representatives and eight
employee representatives in accordance with the German Co-Determination Act (Mitbestimmungsgesetz –
MitbestG). The shareholder representatives are elected by the shareholders at the Annual General Meeting
and the employee representatives are elected by the employees.
►SEE SUPERVISORY BOARD
While the eight employee representatives had already been elected by the employees of adidas AG prior to
the 2024 Annual General Meeting, the most recent regular election of the eight shareholder
representatives took place at the 2024 Annual General Meeting. In order to strengthen shareholders’ voting
rights, meet the demands of modern corporate governance, and be able to react flexibly to changing
competency requirements, the 2024 Annual General Meeting made use of the option stipulated in § 9
section 2 of the Articles of Association of adidas AG to shorten the maximum term of office from five to four
years and to introduce staggered terms of office for the shareholder representatives on the Supervisory
Board (‘staggered board’). In this regard, by way of individual voting, some shareholder representatives
were elected to the Supervisory Board for terms of office of one, two, three or four years.
In order to increase the efficiency of its work and to deal with complex matters, the Supervisory Board has
formed five permanent committees from among its members, which, inter alia, prepare its resolutions and,
in certain cases, pass resolutions on its behalf. At present, these committees are as follows:
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Steering Committee
Thomas Rabe (Chairman)
Nassef Sawiris
Paul Francis Seline
General Committee
Thomas Rabe (Chairman)
Birgit Biermann
Linda Evenhuis
Ian Gallienne
Nassef Sawiris
Paul Francis Seline
Audit Committee
Bodo Uebber (Chairman)
Christian Klein
Oliver Mintzlaff
Thomas Sapper
Günter Weigl
Nomination Committee
Thomas Rabe (Chairman)
Oliver Mintzlaff
Nassef Sawiris
Mediation Committee
(§ 27 paragraph 3 MitBestG)
Thomas Rabe (Chairman)
Bastian Knobloch
Nassef Sawiris
Paul Francis Seline
Committee
Members
The tasks, responsibilities, and work processes of the committees are in line with the requirements of the
German Stock Corporation Act and the Code. The Chairmen of the committees regularly report to the
Supervisory Board on the results of the committee work.
Further information on the committees can be found on the company’s website.
►ADIDAS-GROUP.COM/SUPERVISORY-BOARD-COMMITTEES
Taking into account the recommendations of the Code, the Rules of Procedure of the Supervisory Board
and the Rules of Procedure of the Audit Committee clarify that the Supervisory Board’s supervision and
advising activities also include, in particular, sustainability issues. While the entire Supervisory Board has
primary responsibility for the adidas Group's relevant environmental/sustainability, social and governance
(ESG) matters, the Audit Committee also monitors sustainability topics. Accordingly, sustainability reporting
and its audit are part of accounting and the annual audit, which fall within the Audit Committee’s sphere of
responsibility. Further information on the competency profile for the entire Supervisory Board and the
sustainability-related expertise of the individual Supervisory Board members relevant to the company are
outlined in the qualification matrix below.
Objectives for the composition of the Supervisory Board
At its meeting in December 2025, the Supervisory Board reviewed and confirmed its objectives regarding its
composition (including the competency profile for the entire Supervisory Board). The objectives are
published on our website. According to these objectives, the Supervisory Board should be composed in
such a way that qualified supervision of and advice to the Executive Board are ensured. Its members, on
the whole, are expected to have the knowledge, skills, and professional experience required to properly
perform the tasks of a supervisory board in a capital market-oriented international company in the sporting
goods industry. Therefore, it is ensured that the Supervisory Board possesses the competencies
considered essential in view of adidas’ activities. This includes, in particular, in-depth knowledge and
experience in the sporting goods, and sports- and leisurewear industry, in the business of fast-moving
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consumer-oriented goods and in the areas of digital transformation and information technology (including IT
security and artificial intelligence), production, marketing, and sales, as well as in the e-commerce and
retail sector. Moreover, the Supervisory Board is expected to possess knowledge and experience in the
markets relevant for adidas, in particular the Asian and US markets, and in the management of a large
international company. Furthermore, the Supervisory Board as a whole must possess knowledge and
experience in the areas of business strategy development and implementation, personnel planning and
management, accounting and financial reporting, governance/compliance, and sustainability issues
relevant to adidas, including environmental, social, and governance aspects. At least one member of the
Supervisory Board must have expertise in the field of accounting, and at least one further member of the
Supervisory Board must have expertise in the field of auditing. Accounting and auditing also include
sustainability reporting and its audit and assurance. The Supervisory Board members as a whole must be
familiar with the sporting goods industry.
►ADIDAS-GROUP.COM/BODIES
Regarding the independence of its members, the Supervisory Board considers the following provisions to be
appropriate: More than half of the Supervisory Board members should be independent within the meaning
of the Code, whereby it is assumed that the employee representatives’ independence is not impaired either
by their role as employee representatives or by their status as adidas employees. If we consider
shareholder representatives and employee representatives separately, more than half of the Supervisory
Board members in each of these groups should be independent. From the company’s perspective and
following the regulations of the Code, Supervisory Board members are to be considered independent if they
have no personal or business relationship with the company or its Executive Board that may cause a
substantial, and not merely temporary, conflict of interest.
More than two-thirds of the shareholder representatives should be free of any potential conflicts of interest.
This applies, in particular, to potential conflicts of interest that may arise as a result of an advisory or
governing body function among customers, suppliers, lenders, or other third parties. As a rule, members of
the Supervisory Board should not have a governing body or advisory function with any key competitor and
should not have a personal relationship with any key competitor.
Furthermore, the Supervisory Board is committed to a diverse composition in terms of age, gender, cultural
origin, nationality, educational background, professional qualifications, and experience. An adequate
number of the shareholder representatives should have long-standing international experience. In addition,
each Supervisory Board member must ensure that they have sufficient time to properly perform the tasks
associated with the mandate. In general, the age limit for the Supervisory Board members should be 72
years at the time of their appointment. As a rule, the length of membership in the Supervisory Board should
not exceed twelve years or three terms of office.
In the Supervisory Board’s assessment, the Supervisory Board as a whole fulfills the objectives stated and
the competency profile in its current composition. With Thomas Rabe, Chairman of the Supervisory Board,
Bodo Uebber, Chairman of the Audit Committee, and the Audit Committee member Christian Klein, at least
three members of the Supervisory Board have proven expertise in the fields of accounting and auditing.
They have expert knowledge and experience both in accounting and in the application of accounting
principles as well as in internal control systems and risk management systems and in sustainability
reporting and its audit and assurance.
In the opinion of the Supervisory Board, all shareholder representatives qualified as independent in the year
under review. The names of the independent shareholder representatives are set out in the overview of all
Supervisory Board members in this Annual Report.
►SEE SUPERVISORY BOARD
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The Supervisory Board’s proposals for the Supervisory Board elections to the Annual General Meeting are
prepared by the Nomination Committee. The committee takes into account the objectives regarding the
Supervisory Board’s composition resolved by the Supervisory Board and also aims at fulfilling the
competency profile developed by the Supervisory Board for the Board as a whole. The Supervisory Board
pays attention to a balanced composition to ensure that the required know-how is represented on as broad
a scale as possible. Moreover, the Supervisory Board ascertains from each proposed candidate whether
they have sufficient time to perform their mandates.
The Supervisory Board’s diversity profile as well as the competency profile for the entire Supervisory Board
and the expertise of the individual Supervisory Board members are outlined in the following overviews11:
Year of birth
1965
1971
1962
1980
1975
1961
1959
1967
Nationality
German
French
US-American
German
German
Egyptian/Belgian
German
US-American
Educational background
MBA2,
Dr. rer. pol.3
MBA2
BA (Hist.)4
IBWL5
BWL6
BA (Econ.)7
Diploma in
Industrial
Engineering
MA (EAS)8
1 f = female, m = male.
2 Master of Business Administration.
3 Doctor of Economics.
4 Bachelor in History.
5 International Business Administration.
6 Business Administration.
7 Bachelor in Economics.
8 Master in East Asian Studies.
Diversity profile of the Supervisory Board: employee representatives
Diversity as at
December 31, 2025
Paul Francis
Seline
Birgit Biermann
Linda Evenhuis
Bastian Knobloch
Petar Mitrovic
Thomas Sapper
Harald Sikorski
Günter Weigl
Gender1
m
f
f
m
m
m
m
m
Year of birth
1965
1973
1973
1982
1975
1966
1966
1965
Nationality
US-American
German
Dutch
German
German
German
German
German
Educational background
MA2
(Diplom
Exportwirt)
Lawyer
BA3
IT Specialist
MA4
MBA5
(Diplom
Kaufmann)
Energy systems
electronics
technician
Diploma in
Sports Economics
1 f = female, m = male.
2 Master in International Marketing.
3 Bachelor in International Business and Languages.
4 Master in Humanities.
5 Master of Business Administration.
Diversity profile of the Supervisory Board: shareholder representatives
Diversity as at
December 31, 2025
Thomas Rabe
Ian Gallienne
Jackie
Joyner-Kersee
Christian Klein
Oliver Mintzlaff
Nassef Sawiris
Bodo Uebber
Jing Ulrich
Gender1
m
m
f
m
m
m
m
f
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11 Disclosure pursuant to ESRS 2, paragraphs 20a, 20c, and 21c.
International management
ü
ü
ü
ü
ü
ü
ü
Sporting goods industry
ü
ü
ü
ü
Business with fast-moving consumer goods
ü
ü
ü
ü
Main markets
ü (US)6
ü
(AS, EU, US)6
ü (AS)6
Production, marketing, sales
ü
ü
ü
ü
ü
ü
Business strategy development and
implementation
ü
ü
ü
ü
ü
ü
Digital transformation,
IT and IT security, AI
ü
ü
Personnel planning and management
ü
ü
ü
ü
ü
1 Year of appointment as Supervisory Board member.
2 Incl. special knowledge and experience in auditing non-financial reporting.
3 Incl. special knowledge and experience in internal control and risk management systems as well as sustainability reporting.
4 AC = Audit Committee.
5 E = Environmental, S = Social, G = Governance (incl. Compliance).
6 AS = Asian market, EU (EMEA) = Europe (Europe, Middle East, Africa), US = United States market.
Supervisory Board competency profile: employee representatives
Qualifications and competencies
as at December 31, 2025
Paul Francis
Seline (2024)1
Birgit
Biermann
(2022)1
Linda Evenhuis
(2024)1
Bastian
Knobloch
(2022)1
Petar Mitrovic
(2024)1
Thomas Sapper
(2024)1
Harald Sikorski
(2024)1
Günter Weigl
(2019)1
Auditing2
Accounting3
ESG
ü (E, S, G)4
ü (S, G)4
ü (E, S, G)4
International management
ü
Sporting goods industry
ü
ü
ü
ü
ü
ü
Business with fast-moving consumer goods
ü
ü
ü
ü
ü
ü
Main markets
ü (EU)5
Production, marketing, sales
ü
ü
Business strategy development and
implementation
Digital transformation,
IT and IT security, AI
ü
ü
Personnel planning and management
ü
ü
ü
ü
1 Year of appointment as Supervisory Board member.
2 Incl. special knowledge and experience in auditing non-financial reporting.
3 Incl. special knowledge and experience in internal control and risk management systems as well as non-financial reporting.
4 E = Environmental, S = Social, G = Governance (incl. Compliance).
5 AS = Asian market, EU (EMEA) = Europe (Europe, Middle East, Africa), US = United States market.
Supervisory Board competency profile: shareholder representatives
Qualifications and competencies
as at December 31, 2025
Thomas Rabe
(2019)1
Ian Gallienne
(2016)1
Jackie
Joyner-Kersee
(2021)1
Christian Klein
(2020)1
Oliver Mintzlaff
(2024)1
Nassef Sawiris
(2016)1
Bodo Uebber
(2019)1
Jing Ulrich
(2019)1
Auditing2
ü
ü (AC)4
ü (AC)4
Accounting3
ü
ü (AC)4
ü (AC)4
ESG
ü (G)5
ü (G)5
ü (S)5
ü(E, G)5
ü (S, G)5
ü (G)5
ü (E, S, G)5
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Tasks of the Supervisory Board
The Supervisory Board supervises and advises the Executive Board on the management of the company.
The supervision and advice include sustainability issues in particular. The Executive Board regularly,
expeditiously, and comprehensively reports on the strategy, planning, business development, the
company’s risk situation, risk management, and the compliance organization as well as material
compliance cases and litigation, and coordinates the corporate strategy and its implementation with the
Supervisory Board. The Supervisory Board examines and approves the annual financial statements and
consolidated financial statements as well as the combined Management Report of adidas AG and the
Group, taking into consideration the auditor’s reports, and resolves upon the proposal of the Executive
Board on the appropriation of retained earnings. Additionally, it resolves on the Supervisory Board’s
resolution proposals to the Annual General Meeting. Moreover, the Supervisory Board examines the
combined non-financial statement for the company and the Group and any separate non-financial reports.
Certain business transactions and measures of the Executive Board with fundamental significance are
subject to approval by the Supervisory Board or by a Supervisory Board committee. The respective details
are set out in § 9 of the Rules of Procedure of the Supervisory Board of adidas AG. Furthermore, the
requirement of prior Supervisory Board approval is stipulated in some resolutions by the Annual General
Meeting.
The Supervisory Board is also responsible for the appointment and dismissal of the Executive Board
members as well as for the allocation of their areas of responsibility. The respective proposals are
prepared by the General Committee. When appointing new Executive Board members, the Supervisory
Board provides for the best possible, diverse and mutually complementary Executive Board composition for
the company and, together with the Executive Board, ensures long-term succession planning. The
Supervisory Board takes a structural approach in its succession planning for the individual Executive Board
positions. This is based on multiple planning horizons. This ensures a sustainable approach to identifying
and evaluating successor candidates for Executive Board positions. The Supervisory Board and the General
Committee discuss succession planning on a regular basis.
Furthermore, the Supervisory Board determines the Executive Board compensation system, examines it
regularly, and decides on the individual overall compensation of each Executive Board member. The
Supervisory Board, together with the Executive Board, annually prepares a clear and comprehensible report
on the compensation granted and due in the previous financial year in accordance with § 162 AktG. Further
information on Executive Board compensation, the current compensation system, the Compensation
Report, and the auditor’s report in accordance with § 162 AktG is available on the company’s website.
►ADIDAS-GROUP.COM/COMPENSATION
Further information on corporate governance
More information on topics covered in this report can be found on our website, including:
─Articles of Association
─Rules of Procedure of the Executive Board
─Rules of Procedure of the Supervisory Board
─Rules of Procedure of the Audit Committee
─Supervisory Board committees (composition and tasks)
─CVs of Executive Board members and Supervisory Board members
─Objectives of the Supervisory Board regarding its composition (including competency profile for the full
Supervisory Board)
► ADIDAS-GROUP.COM/CORPORATE-GOVERNANCE
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Apart from the members’ individual skills, the Rules of Procedure of the Supervisory Board and of the Audit
Committee also set out the tasks and responsibilities as well as the procedure for meetings and passing
resolutions. These Rules of Procedure are available on our website. The Supervisory Board Report provides
information on the activities of the Supervisory Board and its committees in the year under review.
►SEE SUPERVISORY BOARD REPORT ►ADIDAS-GROUP.COM/BODIES
The members of the Supervisory Board are individually responsible for undertaking any necessary training
and professional development measures required for their tasks and, in doing so, are supported by
adidas AG. The company informs the Supervisory Board regularly about current legislative changes,
particularly with regard to the increasing regulation of environmental, social, and governance (‘ESG’) topics
and non-financial reporting, and about opportunities for external training, and provides relevant specialist
literature. Moreover, the Supervisory Board is updated on questions of information security, data privacy,
and artificial intelligence as well as relevant regulations in this regard.
To facilitate the performance of their duties, the company also offers new Supervisory Board members or
members who assume new responsibilities introductions to the work of the Supervisory Board and/or to
new areas of responsibility of Supervisory Board members. In this regard, the Supervisory Board members
receive a detailed introduction to the business and subject areas that are relevant for their particular tasks.
Oliver Mintzlaff, the new Audit Committee member, participated in comprehensive introductory sessions by
the responsible adidas employees in the areas of, inter alia, accounting, internal control and risk
management systems, compliance, and ESG.
Moreover, the Supervisory Board as well as the Audit Committee, General Committee, and Nomination
Committee regularly assess the efficiency of their work. Following the successful implementation of specific
measures to improve the organization of the Supervisory Board’s work which had been resolved in the
preceding financial years, the Supervisory Board conducted another efficiency examination of its work in the
year under review. The Supervisory Board concluded that the Supervisory Board as a whole as well as its
respective committees are efficient, and resolved specific measures to further improve the organization of
its work.
The compensation of the Supervisory Board members is set out in the Compensation Report.
► ADIDAS-GROUP.COM/COMPENSATION
Commitment to the promotion of equal participation of women and men in leadership
positions
When filling leadership positions in the company, the Executive Board aims for an appropriate participation
of women in particular. The Supervisory Board is also convinced that an increase in the number of women
in leadership positions within the company is necessary to ensure that, in the future, a larger number of
suitable female candidates is available for Executive Board positions. The Executive Board and Supervisory
Board therefore recognize the importance of the company’s initiatives to promote women in leadership
positions.
►SEE PEOPLE AND CULTURE
With Michelle Robertson as Executive Board member for Global Human Resources, People and Culture, we
fully meet the requirements of § 76 section 3a AktG introduced with the Second Leadership Positions Act
(Führungspositionengesetz – FüPoG II), which stipulates that at least one woman and at least one man be
appointed as members of the Executive Board.
In 2025, we continued to advance our inclusion and belonging efforts.
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In line with our global ambition to achieve gender balance in leadership positions by December 31, 2033,
we further strengthened the pipeline of female talent for senior roles across all markets.
As of December 31, 2025, women held 40.7% of leadership positions at Director level and above globally.
At adidas AG women represented 35.7% of leaders on the first management level below the Executive
Board (Board-1) and 37.0% on the second management level (Board-2). Despite intensified efforts, we
ended 2025 slightly below our target of 40% for both management levels, set by the Executive Board in
2023. Achieving this threshold would have required an additional two women on Board-1 and seven women
on Board-2. Our limited number of positions on these management levels in Germany reflects our global
operating model, where positions are aligned with where the consumer is, rather than concentrated in one
single market.
This development must be viewed in the context of adidas’ operating model changes and the attrition
related to it, which was unknown at the time targets were formulated. To position the company for long-term
success, we implemented structural changes to better align our operating model with the realities of our
work. These adjustments resulted in role reductions across several business areas at our Herzogenaurach
headquarters, affecting management levels and reducing external hiring activity.
To support continued progress toward our global ambition of gender balance by 2033, the Executive Board
has set a new five-year target through December 31, 2030. For both management levels below the
Executive Board of adidas AG, women’s representation is now targeted within a corridor of 40% – 50%.
In accordance with § 96 section 2 sentence 1 AktG, at least 30% of the members of the Supervisory Board
must be female and at least 30% must be male. As the Supervisory Board objected to an overall fulfillment
of the aforementioned quota pursuant to § 96 section 2 sentence 3 AktG, the minimum quota must be
fulfilled separately by the Supervisory Board in the year under review, with the numbers of male and female
members rounded up or down to full numbers (§ 96 section 2 sentences 2 and 4 AktG). Thus, the
Supervisory Board of adidas AG must consist of at least two women and two men on the shareholder
representative side and on the employee representative side. These minimum quotas were achieved.
As at December 31, 2025, two Supervisory Board mandates were held by women and six Supervisory
Board mandates were held by men on both the shareholder representative side and the employee
representative side.
The company will continue to intensify its inclusion and belonging efforts in order to remain an attractive
employer in the future. There will be a particular focus on a long-term approach to equity in leadership
positions – both through hiring and through appropriate succession planning.
►SEE PEOPLE AND CULTURE
Avoiding conflicts of interest
The members of the Executive Board and Supervisory Board are obligated to disclose any conflicts of
interest to the Supervisory Board without delay. Substantial transactions between the company and
members of the Executive Board or related parties of the Executive Board require Supervisory Board
approval. Contracts between the company and members of the Supervisory Board also require Supervisory
Board approval. The Supervisory Board reports any conflicts of interest, as well as the handling thereof, to
the Annual General Meeting.
►SEE SUPERVISORY BOARD REPORT
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Share transactions conducted by the Executive Board and Supervisory Board
An overview of the transactions of the Executive Board and the Supervisory Board pursuant to Article 19 of
Regulation (EU) No 596/2014 (Market Abuse Regulation) notified to adidas AG in 2025 is published on our
website.
►ADIDAS-GROUP.COM/MANAGERS-TRANSACTIONS
Relevant management practices
Our business activities are aligned with the legal systems of the various countries and markets in which we
operate. We are also aware of our considerable social and environmental responsibility.
We will remain committed to sustainability in the years ahead, advancing our environmental priorities
across climate, circularity, and nature. Regarding climate, we will drive reductions in greenhouse gas
emissions across our operations and value chain, in line with our adidas Climate Transition Action Plan
(CTAP) and through collaboration with supply chain partners. Therefore, we aim to reduce greenhouse gas
emissions by 42% by 2030 compared to the base year 2022. For nature, we will uphold our commitment to
deforestation-free supply chains and integrate environmental considerations into the sourcing of nature-
derived materials as outlined in our Biodiversity and Ecosystems Policy. In circularity, we will increase the
use of recycled materials and strive to minimize waste across our value chain.
Because a sustainable future requires collective effort, we will continue our active involvement in industry
initiatives. We will work with organizations such as the UNFCCC, Fashion for Good, Textile Exchange, and
Canopy to drive collaborative solutions for our industry.
Further information on company-specific practices that are applied in addition to statutory requirements,
such as our Fair Play Code of Conduct, as well as information on compliance with working and social
standards within our supply chain, environmentally friendly resource management in our manufacturing
processes, and our social commitment, is available in this Annual Report and on our website.
►SEE PEOPLE AND CULTURE ►SEE SUSTAINABILITY STATEMENT ►ADIDAS-GROUP.COM/SUSTAINABILITY
Compliance and risk management
Compliance with laws, adherence to internal and external provisions, and responsible risk management are
part of corporate governance at adidas. Our Compliance Management System is linked to the company’s
Internal Control and Risk Management System. As part of our global ‘Fair Play’ concept, the Compliance
Management System establishes the organizational framework for company-wide awareness of our internal
rules and guidelines and for the legally compliant conduct of our business. It underscores our strong
commitment to ethical and fair behavior in our own organization and also sets the parameters for how we
deal with others. The principles of our Compliance Management System are set out in the Risk and
Opportunity Report. The Risk and Opportunity Management System ensures risk-aware, opportunity-
oriented, and informed actions in a dynamic business environment in order to guarantee the
competitiveness and sustainable success of adidas.
►SEE RISK AND OPPORTUNITY REPORT
Transparency and protection of shareholders’ interests
It is our goal to inform all institutional investors, private shareholders, financial analysts, business
partners, employees, and the interested public about the company’s situation, at the same time and to an
equal extent, through regular, transparent, and up-to-date communication. We publish all essential
information – such as ad hoc announcements, press releases, and voting rights notifications as well as all
presentations from roadshows and conferences, all financial reports, and the financial calendar – on our
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website. With our Investor Relations activities, we maintain close and continuous contact with our current
and potential shareholders.
►SEE OUR SHARE ►ADIDAS-GROUP.COM/INVESTORS
In addition, we provide all documents and information on our Annual General Meeting on our website. The
shareholders of adidas AG exercise their shareholders’ and voting rights at the Annual General Meeting.
Each share grants one vote. Through these participation rights, our shareholders can take part in all
fundamental decisions of the Annual General Meeting. The company aims to support its shareholders in the
best possible manner when they exercise their rights at the Annual General Meeting.
Our Annual General Meeting on May 15, 2025, once again took place with our shareholders being present
at the Stadthalle Fürth. At that event, as well as at the next Annual General Meeting in Fürth on
May 7, 2026, we offered and will offer our shareholders a comprehensive service. For instance,
shareholders can register electronically for the Annual General Meeting through our shareholder portal and
cast their votes electronically by postal vote if they do not participate in person at the Annual General
Meeting, or they can participate in the voting by granting powers of representation and giving instructions
online to the proxies appointed by the company until the end of the general debate at the Annual General
Meeting. Moreover, each year, a live stream of the entire Annual General Meeting is available via our
shareholder portal for shareholders of adidas AG and via our website for the general public.
►ADIDAS-GROUP.COM/AGM
Further information on the principles of our management
More information on topics covered in this report can be found on our website, including:
─Code of Conduct
─Sustainability
─Social commitment
─Risk and opportunity management and compliance
─Information and documents on the Annual General Meeting
─Managers’ transactions
─Compensation
─Accounting and annual audit
►ADIDAS-GROUP.COM/CORPORATE-GOVERNANCE
Share-based programs for senior executives
A long-term incentive plan (‘LTIP’), which is part of the remuneration for senior executives of adidas,
applies. Based on this plan, the plan participants receive virtual shares (Restricted Stock Units). As per
their contracts, each Executive Board member is entitled to participate in the Long-Term Incentive Plan
established for Executive Board members. The adidas shares purchased are subject to a multi-year lock-up
period.
►SEE NOTE 26 ►SEE PEOPLE AND CULTURE ►ADIDAS-GROUP.COM/COMPENSATION
Employees of adidas AG and its affiliated companies are able to participate in an employee stock purchase
plan under which they can acquire adidas AG shares with a discount and benefit, on a prorated basis, from
free matching shares.
►SEE NOTE 26
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Accounting and annual audit
adidas AG prepares the annual financial statements in accordance with the provisions of the German
Commercial Code (Handelsgesetzbuch – HGB) and the AktG. The annual consolidated financial statements
are prepared in accordance with the principles of the IFRS Accounting Standards, as adopted by the
European Union (EU).
PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft, Frankfurt am Main, Germany, was
appointed as auditor for the 2025 annual financial statements and consolidated financial statements by
the Annual General Meeting of May 15, 2025. The Supervisory Board had previously assured itself of the
auditor’s independence.
►SEE COPY OF THE AUDITOR’S REPORT
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Our Share
In 2025, major equity indices ended the year above prior-year levels, supported by steadier inflation and
lower interest rates. However, volatility was elevated and sector performance diverged significantly, with
consumer-related sectors underperforming the broader market due to geopolitical and macroeconomic
developments. Against this backdrop, the adidas AG share performed broadly in line with its sector peer
group but lagged the broader stock market, notwithstanding the better-than-expected results for the
year. Given the company’s strong financial and operational performance in 2025, adidas will propose a
dividend of € 2.80 per share, up 40% compared to the prior year, at the Annual General Meeting in May.
Total cash returns to shareholders are expected to amount to up to € 1.5 billion in 2026 as the
company, in addition to the dividend payout of € 500 million, plans to buy back shares worth up to
€ 1 billion this year.
adidas AG share member of major indices
The adidas AG share is part of a variety of major indices such as the DAX 40, the EURO STOXX 50, as well
as the MSCI World Textiles, Apparel and Luxury Goods Index. As of December 31, 2025, our weighting in
the DAX 40 – the German benchmark index – was 2% (2024: 3%), and we ranked 18th on market
capitalization (2024: 13th).
adidas AG share price development in 2025
In 2025, stock markets in aggregate advanced as inflation continued to stabilize and several central banks
lowered interest rates, providing a supportive backdrop for financial markets in the second half of the year.
The DAX 40 gained 23% and the EURO STOXX 50 18%, respectively. However, consumer-related sectors
faced continued headwinds throughout the year, reflecting elevated uncertainty regarding the direct and
indirect effects of higher tariffs and implications of ongoing trade tensions. As a result, the MSCI World
Textiles, Apparel and Luxury Goods Index was broadly flat and most sporting goods stocks declined
significantly in 2025. The adidas AG share developed broadly in line with its sector peer group, ending
2025 with a 29% decrease compared to the prior year, despite an upgrade to the financial guidance in
October 2025 and better-than-expected results for the year.
Our Level 1 ADR closed 2025 at US $ 98.85, representing a decrease of 19% versus the prior-year level
(2024: US $ 121.77). The number of Level 1 ADRs outstanding amounted to 7.0 million at year-end 2025
compared to 9.1 million at the end of 2024.
►ADIDAS-GROUP.COM/ADR
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Ten-year share price development1
1 Index: December 31, 2015 = 100. Source: Bloomberg.
adidas AG
(29)
33
(43)
88
DAX 40
23
76
79
128
EURO STOXX 50
18
53
63
77
MSCI World Textiles, Apparel and Luxury Goods Index
3
2
(5)
95
Source: Bloomberg.
Performance of the adidas AG share and important indices at year-end 2025 in %
1 year
3 years
5 years
10 years
Number of shares outstanding at
year-end1
shares
178,665,018 178,549,084
— DAX 40
— EURO STOXX 50
— MSCI World Textiles, Apparel and Luxury Goods
— MSCI World ESG Leaders Index
— FTSE4Good Index Series
Basic earnings per share2
€
7.46
4.24
Diluted earnings per share2
€
7.46
4.24
Year-end price
€
169.05
236.80
Year high
€
263.10
244.50
Year low
€
151.60
164.68
Market capitalization3
€ in millions
30,429
42,280
Dividend per share4
€
2.80
2.00
Dividend payout3,4
€ in millions
500
357
Dividend payout ratio2,4
%
36.3
43.3
Dividend yield4
%
1.7
0.8
Shareholders’ equity per share3
€
32.33
30.67
Price-earnings ratio at year-end5
x
22.7
55.9
Average trading volume per trading
day6
shares
540,179
449,120
1 All shares carry full dividend rights, excluding treasury shares.
2 Based on net income from continuing operations.
3 Based on number of shares outstanding at year-end, excluding treasury shares.
4 Value for the reporting year subject to Annual General Meeting approval.
5 Based on basic EPS from continuing operations.
6 Based on number of shares traded on Xetra.
adidas AG share
2025
2024
Important indices
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48
Dividend proposal and share buyback
The adidas AG Executive and Supervisory Boards will recommend paying a dividend of € 2.80 per dividend-
entitled share to shareholders at the Annual General Meeting on May 7, 2026. This represents an increase
of 40% compared to the prior year (2025: € 2.00). The proposal reflects the company’s better-than-
expected performance in 2025, its strong financial profile, and Management’s confident outlook for the
future. The dividend payout of € 500 million (2025: € 357 million) reflects a payout ratio of 36% of net
income from continuing operations, within the target range as defined in our Financial Policy. Total cash
returns to shareholders are expected to amount to up to € 1.5 billion in 2026 as the company, in addition
to the dividend payout of € 500 million, plans to buy back shares worth up to € 1 billion this year. adidas
intends to cancel the repurchased shares.
►ADIDAS-GROUP.COM/AGM ►ADIDAS-GROUP.COM/SHAREBUYBACK
Dividend
€ 2.80
(subject to Annual General Meeting approval)
Strong international investor base
Based on our share register, adidas AG currently has more than 165,000 shareholders (2024: more than
136,000). The higher number of shareholders compared to the previous year was largely driven by an
increase in the number of retail investors. In our latest ownership analysis conducted in December 2025,
we identified almost 100% of our shares outstanding. Institutional investors represent the largest group,
holding 79% of shares outstanding (2024: 80%). Retail investors and undisclosed holdings account for 20%
(2024: 19%). adidas AG held 1% of the company’s shares as treasury shares as of December 31, 2025
(2024: 1%).
Shareholder structure by investor group1
1 As of December 2025.
In terms of geographical distribution, the North American market currently accounts for 35% of institutional
shareholdings (2024: 41%), followed by the United Kingdom and Ireland with 18% (2024: 18%). German
investors represent 14% of institutional shareholdings (2024: 13%) and institutional investors from other
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continental European countries account for 27% (2024: 23%), while 5% of institutional shareholders were
identified in other regions of the world (2024: 5%).
Shareholder structure by region1,2
1 As of December 2025.
2 Reflects institutional investors only.
Majority of analysts have a positive view on our share
Our share is actively covered by 31 analysts from investment banks and brokerage firms. As of December
31, 2025, 81% of analysts recommended investors to ‘buy’ our share (2024: 63%), 19% of analysts
advised investors to ‘hold’ our share (2024: 30%), and no analyst recommended to ‘sell’ our share
(2024: 7%).
adidas AG high and low share prices per month1 in €
1 Based on daily Xetra closing prices. Source: Bloomberg.
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Frequent and meaningful touchpoints with capital market participants
adidas maintains a close dialogue with institutional and retail shareholders as well as financial analysts.
We notify capital market participants of operational and financial developments of adidas in a timely and
transparent manner. In addition, adidas Management and the Investor Relations team continually engage in
conversations with existing and potential investors on a wide variety of topics, including financial results
releases, operational progress and priorities, the current and future product pipeline, marketing initiatives,
and our ongoing sustainability efforts.
In 2025, Management and Investor Relations spent more than 50 days on roadshows and at conferences
across the world. We also hosted more than 100 investors and analysts at our headquarters as well as in
our regional hubs, enabling them to interact with senior leaders, experience the atmosphere on site,
explore our product showrooms, and take a tour of our rich archives. The Investor Relations team also
engaged with retail shareholders at several dedicated events in 2025. In addition, the physical Annual
General Meeting in May also allowed for many in-person interactions with the company’s retail shareholder
base. Investors can find in-depth information on our share, financial publications, and financial calendar on
our corporate website.
►ADIDAS-GROUP.COM/INVESTORS
Voting rights notifications published
All voting rights notifications received in 2025 in accordance with §§ 33 et seq. of the German Securities
Trading Act (Wertpapierhandelsgesetz – WpHG) (§§ 21 et seq. German Securities Trading Act old version)
are published on our corporate website. Information on reportable shareholdings that currently exceed or
fall below a certain threshold can also be found in the Notes section of this Annual Report.
►ADIDAS-GROUP.COM/VOTING_RIGHTS_NOTIFICATIONS ►SEE NOTE 25
Managers’ transactions reported on corporate website
Managers’ transactions involving adidas AG shares (ISIN DE000A1EWWW0) or related financial
instruments, as defined by Article 19 of the European Market Abuse Regulation (MAR), conducted by
members of our Executive or Supervisory Boards, or by any person in close relationship with these persons,
are reported on our corporate website.
►ADIDAS-GROUP.COM/MANAGERS-TRANSACTIONS
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2
GROUP MANAGEMENT REPORT
OUR COMPANY
Roadmap to Success
053
Description of Business Model
055
Business Model Overview
055
Product and Marketing
056
Markets and Sales Channels
064
Sourcing and Supply Chain
067
People and Culture
070
ANNUAL REPORT 2025
Roadmap to Success
2025 was another successful year for adidas. The brand’s growth broadened significantly across product
divisions, categories, markets, and channels, and the company’s profitability continued to improve
strongly. Not only did we deliver results that exceeded our initial expectations despite a challenging
external backdrop, we also made adidas a better company during 2025: We have continued to drive
brand heat with an even stronger emphasis on locally relevant products and activations, further improved
our product range and market-led go-to-market approach, strengthened partnerships with both our retail
and brand partners, and simplified the way we work. With this, we laid the foundation for continued
success in the years ahead.
We have continued to strengthen our brand and our business in several ways:
─Global brand with a local mindset: We need to be where our consumers are. With more local trends
emerging, the need for local relevance continues to increase. Instead of a centrally defined one-size-fits-
all approach, we have empowered our markets to create the product, storytelling, partnerships, and
distribution they need to be successful. By providing our markets with decision-making autonomy, we can
meet the expectations of our customers and the needs of our consumers around the world.
─Speed and agility: Fast-changing trends and consumer demands require flexibility and agility. We have
empowered our market teams to accelerate decision-making and have begun to eliminate complicated
processes to react quickly. We will continue to prioritize speed and agility to respond faster to the needs
of our consumers and the feedback from our retail partners.
─Healthy balance between channels: We have transitioned from a narrow focus on our direct-to-consumer
business to a service-oriented model toward our retail partners. By listening closely to their bottom-up
feedback from the various markets and acting on it in a locally relevant way, we have proven our desire
to be a trusted partner for them. And while wholesale is crucial for our future success, we continue to
invest in our own retail and e-commerce presence, which is also tailored to specific market needs. It is
all about maintaining a healthy balance between our channels to win with the consumer.
─Brand heat: We are proud to produce groundbreaking innovation in sports and some of the most sought-
after product in Lifestyle, amplified by brand heat – and vice versa. Brand heat is the sum of everything
we do. It comprises athletes, teams, celebrities, street culture, and more. With this in mind, we have
entered and extended partnerships with some of the greatest teams and athletes in global sports like
football, running, training, and basketball. At the same time, we have also welcomed countless local
partners to our brand who are pushing boundaries in smaller sports, including winter sports, track and
field, rugby, and tennis. And while we are equally proud of our cultural partnerships, we will remain deeply
rooted in sport.
─Brand message on the joy of sport: To complement our strong product offering and drive brand heat
holistically, we have created a new brand narrative – ‘You Got This.’ By putting the joy of sport and its
power as a great unifier at the center, we want to counteract an atmosphere of pressure and stress,
especially for our younger consumers. We will continue to activate this message globally – amplifying it
through major sports events such as the upcoming FIFA World Cup 2026, together with many of our
brand partners – and continue to evolve the narrative.
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In addition, we have five foundational pillars that guide us:
─People: We believe that our people are the key to the company’s success. We focus on creating a
culture that strengthens their performance, well-being, and personal development. This will have a
significant impact on brand heat, consumer and customer satisfaction, and, ultimately, our results.
─Product: Product is key. We innovate in materials, designs, and technologies to constantly bring exciting
new products to the market. This allows us to be relevant to consumers across our markets, both in
Performance and Lifestyle, and to keep growing our deep archive of sportswear icons.
─Consumers: Our consumers are at the heart of everything we do. We focus on what matters to them,
creating the product they want, offering the service they expect, and providing the experience they need.
─Retail partners: We need to be the best service partner for retailers. Multi-branded environments reach
consumers at scale, and we can leverage our strong product pipeline through broad distribution.
─Athletes: Whether the crowd watching is large or small, we are here for all athletes. For more than 75
years, we have been innovating for sports and striving to create only the best for the athlete. This is in
our DNA and has shaped our rich heritage. It is where we come from and where we need to be.
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Description of Business Model
Business Model Overview
Building on our purpose ‘Through sport, we have the power to change lives,’ the overview below outlines
the major input and output factors as well as the outcomes of our business activities.12
►REPORT.ADIDAS-GROUP.COM
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12 The infographic and the following sections (Product and Marketing, Markets and Sales Channels, Sourcing and Supply Chain, and People and Culture) contain
disclosures pursuant to ESRS 2, paragraphs 42a, 42b, 42c, and 48f.
Product and Marketing
Under the adidas brand, we have been designing, engineering, and marketing world-class sports products
for more than 75 years. Through developing innovative products and telling inspiring stories across our
markets, we create only the best for the athlete. By doing so, we continue to build brand equity as well
as the trust of our consumers and partners, which in turn enables us to capitalize on attractive structural
growth opportunities in the sporting goods industry.
The adidas brand
The adidas brand has a long history and deep-rooted connection with sport. We believe that through sport,
we have the power to change lives. This is our purpose, and we live it every day by expanding the limits of
human possibilities. To remain one of the most recognized and iconic brands in the world, on and off the
field of play, we need to drive and maintain our credibility in sport. For us, the adidas brand, this means
launching groundbreaking innovations to continuously deliver the best for the athlete, while also enabling a
culture that is born from it. Being committed to inclusivity, we ensure that all athletes and consumers are
considered and supported by our product assortment.
►SEE ESRS S4 – CONSUMERS AND END USERS
adidas is all about sports and the culture born from it
Product is at the core of everything we do. Our Performance products are built from sport and worn for
sport, helping our athletes to perform at their best in a broad range of sports, represented by our
famous 3-Bar logo. We serve all athletes, in the global sports football, running, basketball, and training, as
well as in many locally relevant credibility sports, including golf, motorsport, tennis, trail running, winter
sports, rugby, and cricket, among many others. On the Lifestyle side, adidas Originals is motivated by the
collective memory of sports and represents brand classics as well as new visionary designs. The Trefoil –
adidas Originals’ iconic signifier – represents products that connect with culture, leveraging our archive and
celebrating our partnerships. In addition, Sportswear is built as an expansion from the playing field to
courtside. It is born from sport and worn for style. Sportswear offers our consumers everyday products that
redefine comfort, versatility, and aesthetics.
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With a more than 75-year history of groundbreaking innovation in sports, we have built an enormously rich
archive – the collective memory of our brand. Some memorable moments include:
─1949: ‘Adolf Dassler adidas Sportschuhfabrik’ is registered in the small town of Herzogenaurach,
Germany, and founder Adi Dassler launches a sports shoe featuring the soon-to-become-famous
3-Stripes, marking the humble beginnings of a global success story.
─1954: adidas makes its mark on the football pitch, with innovative screw-in studs on lightweight football
boots helping the German national football team beat Hungary in the 1954 World Cup final.
─1967: The iconic Franz Beckenbauer tracksuit celebrates its debut as the first piece of apparel from the
brand. To this day, iterations of our tracksuits resonate with consumers around the globe.
─1970: After unlocking footwear and apparel, we deliver the Telstar as our first official match ball for the
1970 FIFA World Cup in Mexico. This marks the beginning of a successful strategic partnership, with the
brand providing innovative official match balls for every FIFA World Cup ever since.
─1972: To enhance brand visibility, a new logo featuring three leaf-shaped foils is introduced: the Trefoil.
In the same year, the Samba, as we know it today, launches as a fast-paced and agile football shoe,
before later turning into a lifestyle icon.
─1973: A tennis shoe developed in the 1960s is rebranded in honor of one of the biggest sports stars of
the time: Stan Smith. The silhouette is synonymous with timeless style and has become an everyday
staple of modern footwear.
─1986: Initially designed for basketball, US-based hip-hop group Run-D.M.C. turn the Superstar shoe into
a streetwear icon with the release of the song ‘My Adidas.’
─1994: Marking the next chapter in our rich football history, the Predator boot is born. While the rippled
rubber fins remain a distinctive feature, continued iterations ensure the franchise remains a go-to for the
world’s top players and amateurs alike.
─2001: adidas becomes the pioneer in the industry to introduce a new lifestyle segment, focusing on
sports-inspired streetwear. In the years to come, new partnerships with Yohji Yamamoto (2001), Stella
McCartney (2002), and Pharrell Williams (2014) are born along with exciting labels, such as Y-3 (2003).
─2013: Boost hits the market and the running industry is changed forever. With the Ultraboost franchise
launch in 2015, the responsive cushioning technology is brought into an elegant silhouette, dissolving
the boundaries between performance and lifestyle running.
─2019: Leveraging years of comprehensive research, we introduce a new sustainability concept called
Futurecraft.Loop, a completely recyclable performance shoe. This marks another critical milestone in our
ambition to continuously push industry-wide boundaries in terms of sustainability.
─2022: In collaboration with Gucci, we build on the incredible legacy of the Gazelle since 1966, resulting
in one of our most sought-after releases. Featuring premium materials and a kaleidoscope of colors, and
merging the iconic Trefoil and Gucci emblems, these ‘Made in Italy’ Gazelles firmly reestablish the
silhouette around the world and kick off the global Terrace trend.
─2023: Continuing to provide only the best for the athlete, we unveil the Adizero Adios Pro Evo 1, our
lightest-ever running shoe. Weighing in at 138 grams, the shoe is 40% lighter than any other shoe adidas
has ever created and enables our athletes to set new personal bests and break multiple records.
─2025: adidas extends the Adizero legacy with the Adizero Prime X Evo, a concept shoe redefining long-
distance running performance. Setting a new benchmark, the shoe helped our athlete, Sibusiso
Kubheka, break the six-hour barrier for 100 kilometers during the Chasing 100 project in Nardò, Italy.
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Product franchises as lighthouses for our brand
Within our wide and deep product range, product franchises are our most iconic symbols of sport and
culture as well as the lighthouses of our brand. In Performance, globally recognized footwear franchises
include Predator and F50 in Football, Adizero and Supernova in Running, Dropset in Training, Agravic and
Free Hiker in Outdoor, Barricade in Tennis, and AE in Basketball. In the Lifestyle category, they include
perennial footwear icons such as Samba, Gazelle, Handball Spezial, Superstar, Adistar, and Stan Smith.
Footwear is key to winning consumer mindshare. With our rich archive, access to fundamental athlete
insights, and technological innovation, we have been pushing and continue to push boundaries in the
athletic footwear industry. This is reflected in our category mix: In 2025, footwear had the highest share of
net sales by product category at 57% (2024: 59%), followed by apparel at 35% (2024: 34%), and
accessories at 7% (2024: 8%).
► SEE NOTE 36
Net sales share by product division
We leverage the footwear-led brand heat and expand it into our apparel and accessories business. On the
apparel side, we aim to build and grow differentiated apparel collections such as the Firebird, Z.N.E., and
adicolor ranges. In apparel, too, our franchises represent the very best of adidas, influencing not only
sports, but also the culture born from it. Through uncompromised functionality, designs, colors, materials,
and unique stories, they have the potential to be iterated over time to preserve desirability.
While our global product franchises serve as lighthouses for the adidas brand, we strive for additions and
adaptations that reflect local consumer preferences across our markets. This approach ensures that iconic
franchises remain central to our identity while enabling locally relevant product assortments.
Global brand with locally relevant product range
Brand desirability might look and feel different in different parts of the world. As a global brand with a local
mindset, we therefore ensure that our product is tailored to local tastes and trends. While product
franchises and our seasonal spring/summer and fall/winter ranges are developed on a global basis, we
empower our markets to adapt the assortment and go-to-market to their local needs. Through dedicated
local design, development, sourcing, and marketing resources, we enable our market teams to cater to the
consumers in their respective market.
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Besides the global creation engine at our headquarters in Herzogenaurach, we have invested in creation
capabilities in Portland and Los Angeles for North America, in Shanghai for Greater China, and in Tokyo for
Japan, among others. This setup enables us to leverage our archive and the strength of a global brand,
while ensuring relevance for a broad array of local consumer preferences. In addition, we run
‘creation at source’ throughout our two largest sourcing countries, Vietnam and Indonesia.
►SEE MARKETS AND SALES CHANNELS
Product innovation and success stories
We have a long heritage of innovation and constantly strive to provide athletes with the best by creating
high-performance and competitive products. Technology platforms such as Boost, Lightstrike, and Clima are
proof points of our broader approach to innovation and act as enablers to define new successful athlete
stories through best-in-class product execution. We collaborate with athletes and consumers, universities,
innovative companies, governments, and research organizations to further understand performance
requirements. Based on these insights, we invest in manufacturing techniques and new technologies with
the aim of addressing the challenges athletes experience.
In the past year, we continued to serve all athletes with innovative technologies, materials, and more
sustainable concepts built into our Performance products:
─Adizero Adios Pro Evo 2: In high-end performance running, we introduced the Adizero Adios Pro Evo 2,
the shoe that won the Berlin, London, and New York marathons. Preserving the ultra-lightweight
construction of the record-breaking Pro Evo 1 at just 138 grams, the Pro Evo 2 enhances energy return
and traction to further elevate elite marathon performance.
─Adizero Evo SL: The Evo SL offers technological innovation and design elements from the Adizero Adios
Pro Evo at the more affordable price point of € 150. With its clean look in addition to its performance
credentials, the Evo SL was highlighted as ‘shoe of the year’ by several running publications. Throughout
the year, additional colorways and packs – such as the US college collection – were launched in
response to strong demand in the marketplace.
─Supernova Rise 3: The Supernova Rise 3 elevates the daily running experience. Reengineered with an
optimized blend of soft and stable cushioning, it delivers a smoother ride and continues the franchise’s
comfort-driven proposition.
─F50 Sparkfusion: Built on the legacy of the iconic speed-focused F50 franchise, the F50 Sparkfusion
delivers a fit engineered for the unique performance needs of female football players. Informed by years
of anatomical research and athlete feedback, it sets a new benchmark for speed, precision, and agility.
─Predator: Many of football’s greatest players trust the Predator, a boot crafted for goals. The latest
iteration continues this success story, combining a lighter, more agile design with improved fit, stability,
and striking precision – delivering powerful performance for the modern game.
─FIFA World Cup 2026 Jerseys: Each kit combines modern performance with timeless tradition,
expressing national identity and honoring football’s heritage. As the official supplier for more than 20
federations, adidas continues its legacy as a premier outfitter at the sport’s most prestigious
tournaments.
─Third Jerseys: Building on last year’s successful reintroduction of Trefoil jerseys for our five major
European clubs – Bayern Munich, Manchester United, Juventus Turin, Arsenal FC, and Real Madrid – we
expanded the concept to a broader range of our clubs. These jerseys bring authentic club designs into
streetwear and bridge into holistic football-inspired lifestyle collections, addressing a larger audience
among fans.
─Liverpool FC: The launch of the adidas designed home and away jerseys marked the most successful kit
introduction in the club’s history. Since then, the collection has been expanded to include bespoke
merchandise, such as Liverpool track tops and dresses, developed with strong involvement from the club
and its fans.
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─AE2: Designed for explosive players and building on AE1’s momentum, the AE2 is driving strong
engagement within the basketball segment and reinforcing our broader signature shoe roster, including
the Harden, D.O.N., and Dame lines, as well as our overall Basketball offering.
─Optime: Our Optime leggings blend support, style, and freedom of movement. Engineered with advanced
material constructs, the squat-proof leggings continue to offer all-day confidence and comfort inside and
outside the gym.
─Climacool Jacket: Created to tackle one of motorsport’s biggest challenges – keeping drivers cool before
racing in extreme heat. The jacket combines a cooling agent, integrated fans, and insulative materials,
delivering an increased cooling effect and helping improve focus and endurance.
─Agravic Speed Ultra 2: A shoe built for ultra-distance trail racing. With enhanced cushioning, comfort,
and energy return, it keeps runners efficient and stable across the toughest terrain. Its clean design and
3-Stripe branding reflect adidas’ running performance DNA, well-known from the Adizero running range.
─Barricade: With Barricade having over 25 years of presence on the court, the latest model incorporates
updated materials and design features for modern tennis. It provides reliable traction and combines
lightweight construction with stability to support speed and agility during play.
We also continued to create sports-inspired product stories that resonate with consumers in Lifestyle,
leveraging our rich archive and roster of brand partners:
─Adistar Jellyfish: Winner of the ‘Shoe of the Year’ Footwear News Achievement Awards 2025, this
sought-after collaboration with Pharrell Williams quickly became one of the most talked-about launches in
lifestyle running. The special edition and its commercial version, the Adistar XLG Squid, resonate strongly
with consumers.
─Adistar Control 5: Reviving an early 2000s running silhouette with open mesh, the Adistar Control 5 is
designed for all-day comfort. Positioned as part of adidas’ lifestyle running range, it combines a heritage-
inspired design with functional features for everyday versatility.
─Superstar: We relaunched one of our most iconic shoes with new colorways, materials, and
collaborations, including Edison Chen and Wales Bonner. Led by North America and Greater China,
dedicated Superstar iterations are resonating well with a young, urban consumer group, strengthening
the connection to local street culture.
─Chinese Track Top: This sought-after jacket, originally launched for the Chinese New Year 2026,
demonstrates how localized innovation within a global framework is key to success. Combining traditional
elements, such as a stand collar and duffle-style button closures, with signature elements of adidas’
tracksuits, the jacket showcases the success of our local-for-local creation in Greater China.
─adidas x Oasis: adidas partnered with Oasis for their reunion tour, drawing inspiration from archival
adidas pieces and the band’s distinctive style. The collection combines design elements from the 1990s
and early 2000s with contemporary streetwear influences. Generating exceptional visibility and consumer
engagement, the launch also marked an impactful moment of brand presence around the tour.
─Terrace: We continued to drive newness and depth in our Terrace offering, consisting of Samba, Gazelle,
and Handball Spezial. Striking new colorways and bold designs – such as animal prints and metallic
finishes – keep the shoe family relevant as we carefully manage supply. Takedown versions of these
iconic silhouettes, such as the VL Court, also strongly resonate with consumers.
─Low Profile: With established credentials in martial arts, boxing, and motorsports, Low Profile franchises,
such as Taekwondo, Tokyo, and Japan, continued to expand. Collaborations with Edison Chen, Wales
Bonner, and Bad Bunny on special editions, such as ballerina-inspired designs, highlight the range’s
versatility.
─F50 Megaride: Merging the technical precision of the F50 with the design influence of the Megaride, this
silhouette combines football heritage with contemporary style. As part of adidas’ lifestyle football
offering, it reflects the growing influence of football culture in everyday footwear.
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─Teamgeist: Originally introduced during the 2006 FIFA World Cup, the Teamgeist returned as a lifestyle
apparel collection. By combining heritage design details with updated fits, it underscores football’s
growing influence in fashion and everyday culture beyond the pitch.
─Climacool Laced Shoe: By pushing the boundaries of design innovation, the Climacool shoe defies
conventional norms with a unique lattice structure and is entirely 3D-printed using cutting-edge
technology. The 360° airflow makes the shoe feel as if it is almost non-existent, a testament to our
journey of innovation, design, and comfort toward creating the best lifestyle running product for our
consumers.
Holistic approach to marketing investments
Our marketing activities – alongside product creation, innovation, and collaborations – are an important
constituent for creating brand desirability and winning the consumer. adidas is focused on generating
inspirational and innovative concepts that drive consumer advocacy, build brand equity, and drive demand
for our products. With partner and brand marketing activities extending through digital platforms,
advertising, point-of-sale, and grassroots activations, we create one powerful narrative. The ambition is to
have a fully connected marketing funnel, from grabbing consumer attention to driving consideration when
consumers are in the buying phase, down to conversion at the point of sale.
►SEE ESRS S4 – CONSUMERS AND END USERS
We are active across five dimensions with bespoke marketing objectives:
─Brand campaigns: create visibility and unaided awareness, and establish a brand point of view
─Elevated franchises: drive global desire and demand for our product franchises
─Category activation: strengthen sport and cultural credibility by sharpening category propositions
─Horizontal brand stories: ensure visibility and engagement for brand priorities across categories
─Commercial conversion: drive conversion at the point of sale, both in-store and online
Marketing plans anchored in our ‘You Got This’ brand campaign
From building brand awareness and brand heat all the way down to deliberate point-of-sale experiences, our
brand marketing plans showcase a variety of activations at all levels of the marketing funnel, with our
global brand campaign ‘You Got This’ being at the very center of it. You Got This was born from consumer
insights. In conversations with our consumers, we repeatedly heard that pressure makes everything feel
impossible and that sport stops being fun when negative pressure comes from all angles. The most
vocalized point was the disconnect from sport due to the expectations of others.
In response, we crafted and adopted You Got This as our brand message to help people believe they can
disarm negative pressure and engage with sport on their terms. Initially launched in 2024, the campaign
evolved significantly in 2025, led by the ‘Plus One’ chapter. This chapter highlights the influence each of us
has in uplifting others in sports – changing the game, tone, and outcome for someone else. It’s about
transforming self-doubt into self-belief and pressure into joy because we all need someone to make us
believe. In 2025, the campaign featured Aitana Bonmatí, Alessia Russo, Anthony Edwards, Lamine Yamal,
Trinity Rodman, and Aliyah Boston alongside countless other global and local brand partners. The campaign
will continue to expand with additional chapters throughout 2026, leveraging major sports events such as
the Olympic and Paralympic Winter Games and the FIFA World Cup 2026.
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Impactful and effective marketing initiatives
2025 provided fantastic opportunities to showcase how our athletes harness their inner self-belief and
confidence to overcome pressure during high-stakes moments in their respective disciplines. Accordingly,
we launched several You Got This chapters around major sports events, with stories narrated by our
athletes, as a reminder to all – from amateur to elite level – of how integral self-belief is. For us, being a
global brand with a local mindset also means telling such stories in a locally relevant way. Our teams
therefore created market-specific iterations of our brand campaign chapters and hosted additional events
within local communities.
─Superstar activation: We reinforced the cultural relevance of the Superstar via several local activations
throughout the year. In the US, the Hellstar x Superstar collaboration featured prominently at
ComplexCon, the world’s most relevant sneaker fair. In the UK, sold-out events featuring live
performances drove strong engagement. In China, SuperstarCon, an event that took over an entire street
block in Shanghai’s city center, strengthened the Superstar’s position as a style icon. Globally, the
‘Superstar, The Original’ campaign celebrated the silhouette’s heritage, partnering with Samuel L.
Jackson and Missy Elliott.
─UEFA Women’s EURO: We amplified the success of our teams at the UEFA Women’s EURO football
tournament through You Got This campaign chapters: Stars including Aitana Bonmatí and Alessia Russo
demonstrated that competitiveness and support can co-exist at all levels of the sport. Simultaneously,
we drove elevated brand visibility with activations such as our Three Stripe Social Club in Zurich – a
curated retail space that served as a meeting point for fans and consumers to connect and experience
football culture.
─Credibility sport events: Multiple sport events provided platforms to showcase our commitment to locally
relevant sports. In rugby, the Black Ferns continued to break barriers and inspire a new generation when
they earned a podium spot at the Women’s World Cup in England. In cricket, India’s women’s team
claimed the ICC Women’s T20 World Cup title for the first time while wearing adidas kits, highlighting our
growing presence in one of the world’s most followed sports.
─Road to Records: The fifth edition of Road to Records at our Herzogenaurach headquarters saw 120
elite athletes deliver standout performances: one world record, two under-20 world records, four
continental records, and four national records. Beyond the elite races, 1,500 runners joined a public 5k
race. Meanwhile, our adidas Runners community tracked more than 350,000 participants in the virtual
race on the adidas Running app.
Brand partner portfolio rooted in sport
2025 was another fantastic year for sport. Many athletes were able to further improve their outstanding
performances and inspire spectators all over the world. For others, it was the year in which they were able
to shine on the big stage for the first time. As a sports brand, we are grateful for the trust these athletes
place in us, and we will support them unconditionally throughout all stages of their journey.
We constantly strive to further extend our sizable roster of athletes and partners. The latest signings
include, the Audi F1 Team, Liverpool FC, Eintracht Frankfurt, Club América, Fenerbahçe Istanbul, Penn
State, the University of Tennessee, the German Basketball Federation (DBB), the South African Football
Association, Ilona Maher, and Franz and Moritz Wagner, among others. In addition, we were able to extend
our partnerships with the Argentine Football Federation, Walt Disney, Major League Soccer, ATHX Events,
Patrick Mahomes, Anthony Edwards, Antoine Dupont, Alexander Zverev, David Beckham, Grace Wales
Bonner, Edison Chen, and Olivia Dean, among others.
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With this, we will continue to bring our products to the biggest stages in the world through partners such
as:
─Major teams, federations, leagues, and events: National football teams of Algeria, Argentina, Belgium,
Colombia, Costa Rica, Germany, Italy, Jamaica, Japan, Mexico, Peru, Saudi Arabia, South Africa, Spain,
and Sweden. Top football clubs, such as Arsenal FC, A.S. Roma, Bayern Munich FC, Juventus Turin,
Liverpool FC, Manchester United, and Real Madrid, as well as all the Major League Soccer (MLS) teams.
Basketball and US sports: US-American universities such as the University of Kansas, Penn State, the
University of Tennessee, Indiana University, and Texas Tech. Running: Ethiopian Athletics Federation
(EAF) and French Athletics Federation (FFA), as well as the Berlin marathon and Boston marathon. Other
sports: Mercedes-AMG PETRONAS F1 team, Audi F1 team, Indian cricket team, German Olympic
Committee (Team D), British Olympic Association (Team GB), Dutch field hockey team, New Zealand All
Blacks and Black Ferns, and China’s national volleyball team.
─High-profile athletes and individuals: Football stars: Aitana Bonmatí, Alessia Russo, Florian Wirtz,
Gianluigi Donnarumma, Jude Bellingham, Jule Brand, Kim Little, Lamine Yamal, Linda Caicedo, Lionel
Messi, Mo Salah, Nick Woltemade, Ousmane Dembélé, Pedri, Selma Bacha, Son HeungMin, Trent
Alexander-Arnold, Trinity Rodman, and Vicky López; Football legends such as Zinedine Zidane, David
Beckham, Toni Kroos, and Jürgen Klopp. Track and field athletes: Anna Hall, Emmanuel Wanyonyi, Ethan
Katzberg, Gina Lückenkemper, Gout Gout, Grant Holloway, Noah Lyles, Oblique Seville, and Shaunae
Miller-Uibo. Marathon runners: Hawi Feysa, Sabastian Sawe, and Tigist Assefa; ultra marathon runner
Ruth Croft as well as triathlete Patrick Lange. Basketball stars: Aliyah Boston, Anthony Edwards,
Candace Parker, Chelsea Gray, Damian Lillard, Donovan Mitchell, Franz and Moritz Wagner, Jalen
Williams, James Harden, Kaleena Smith, Satou Sabally, and Sophie Cunningham. American football
players: Patrick Mahomes, Travis Hunter, Garrett Wilson, and Micah Parsons. Rugby players: Ilona
Maher, Siya Kolisi, Malcolm Marx, and Antoine Dupont. Tennis players: Alexander Zverev, Elina Svitolina-
Monfils, Félix Auger-Aliassime, Ivan Ivanov, Jeline Vandromme, and Jessica Pegula. Alpine skier Mikaela
Shiffrin, Alice Robinson, and snowboarder Su Yiming. Golfers: Ludvig Åberg, Linn Grant, Collin Morikawa,
Nick Dunlap, and Rose Zhang.
─Cultural marketing partners: Oasis, Bad Bunny, Bizarrap, Edison Chen, Grace Wales Bonner, Hellstar,
Pharrell Williams, Willy Chavarria, Hoyeon Jung, Tate McRae, Pusha T, Caroline Daur, Samuel L. Jackson,
and Missy Elliott.
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Markets and Sales Channels
We are a global brand with a local mindset. In addition to operating our sales channels, our market
teams are empowered to decide about product assortments, activations, and partnerships, driven by
their superior knowledge of the local consumer landscape. The majority of our consumers buy our
products at the point of sale of our wholesale partners. We ensure that we are a collaborative and
trusted partner for them. Moreover, we engage directly with our consumers through own retail stores
and our e-commerce platforms.
Local empowerment
We empower our markets to choose their offering from our global product range, create product locally to
complement our global range, work with relevant brand partners, and establish the business models they
need to be successful. By doing so, we ensure proximity to emerging trends, take into account unique
cultural differences, and reduce our time to market. While our headquarters organization in
Herzogenaurach, Germany, provides the global framework for how our brand comes to life, our market
organizations ensure local relevance. In this context, our home market Europe is managed out of
Herzogenaurach, North America out of Portland, and Greater China out of Shanghai. We run Emerging
Markets from Dubai, Latin America from Panama City, and Japan/South Korea from Tokyo and Seoul.
Several of these regional hubs operate creation centers that develop products that are tailored to local
consumer needs and complement our global range. These centers include Portland, Los Angeles, Shanghai,
and Tokyo, as well as various locations in Latin America and India. In addition, we run ‘creation at source’
throughout our two largest sourcing countries, Vietnam and Indonesia. Here, product developers work on
site at our manufacturing partners’ facilities, allowing for an even closer integration between design and
production and accelerating speed to market.
►SEE PRODUCT AND MARKETING
Regional headquarters and creation centers
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Global reach
From a net sales perspective, we have a diversified global footprint. In 2025, Europe – our home market –
had the highest share of business at 33% (2024: 32%), followed by North America at 21% (2024: 22%),
and Greater China at 15% (2024: 15%). Emerging Markets represented 14% (2024: 14%), complemented
by Latin America at 12% (2024: 12%) and Japan/South Korea at 6% (2024: 6%).13
►SEE BUSINESS PERFORMANCE BY SEGMENT
Net sales share by market
Sales channels
Our guiding principle is to meet our consumers where they are. Given the strong relevance of multi-brand
distribution in several markets and categories globally, wholesale remained our largest channel, accounting
for 60% of total net sales in 2025 (2024: 60%). The share of direct-to-consumer (DTC) business, consisting
of own retail and e-commerce sales, was 40% in 2025 (2024: 40%).
Net sales share by channel
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13 Disclosure pursuant to ESRS 2, paragraph 40a ii.
Wholesale
We focus on being a trusted service partner to our retail partners, both offline and online. Through speed,
flexibility, strategic foresight, and the right attitude, we successfully navigate dynamic market environments,
tailoring assortments for key accounts and enhancing in-store presentation. At the same time, we are
closely managing demand and vigilantly tracking customer sell-out and inventory levels.
We continue to invest in future growth with our partners through branded space initiatives and customer-
exclusive products that have a positive impact on our business. In addition, we are building on the positive
feedback and strengthening the direct dialogue with our partners through dedicated partner camps. These
include immersive showroom visits at our hubs around the world as well as events such as the FIFA World
Cup 2026 sell-in meeting, where we hosted over 400 leaders from 170 partners at the SoFi Stadium in Los
Angeles. We unlock additional sales opportunities by sharing and scaling these best practices across all of
our markets.
Own retail
Our own retail stores allow our consumers to directly interact with our brand, product, teams, and
communities. They can touch and try on our products, feel inspired by our stories, and experience what we
stand for as a brand. We continued to invest into a premium physical brand presence with digital elements
and an environment that satisfies a wide variety of our consumers’ needs in strategic locations.
In 2025, the total number of stores was 2,022 (2024: 1,933), comprising 886 concept stores (2024: 838)
and 1,136 factory outlets (2024: 1,095). Our fleet of concept stores – including flagship stores, brand
centers, and concession corners – focuses on offering premium experiences, while factory outlet stores are
targeted at the value-seeking consumer.
We continued to strengthen our presence in strategic locations through additional store openings,
remodels, and concept upgrades during 2025. For example, we opened one of our largest global flagship
stores in Las Vegas, building on our momentum in North America and expanding our footprint ahead of the
upcoming FIFA World Cup 2026. We also reopened our Manchester flagship store just in time for the launch
of the successful Oasis collection. In Asia, we opened new Originals flagship stores in culturally relevant
neighborhoods in Seoul and Shanghai that display many locally exclusive products. Our store fleet is
complemented by pop-ups that create visibility around locally relevant moments in sports and culture.
Examples include our Superstar, Formula 1, and Club World Cup pop-ups, as well as market-led brand
exhibitions that support our product releases. We will keep investing in our physical retail fleet, as it
represents an essential part of building our brand.
E-commerce
Over the past two years, we have redefined the role of e-commerce within our sales channel mix and
successfully focused on improving full-price sales and reducing promotional activity. Our adiClub
membership program continues to deliver unique experiences, including raffles, ‘money-can’t-buy’ products,
vouchers, and partner offers. Members can use accumulated points across all digital and retail
touchpoints, creating a seamless consumer experience. Our award-winning running app keeps millions of
consumers active, motivates them by earning adiClub points, provides personalized fitness plans, and
brings global brand moments to life. The ‘Confirmed’ app – our digital boutique and premium touchpoint for
sneakerheads, streetwear, fashion, and style enthusiasts – continued to thrive through collaborations with
high-fashion brands and pioneers such as Wales Bonner, Bad Bunny, Pharrell Williams, BAPE, and Edison
Chen. Through these initiatives, the adidas app delivers coveted and premium products to our consumers,
offering best-in-class experiences, and further solidifies our status as a trendsetter in the global lifestyle
world.
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Sourcing and Supply Chain
To ensure high standards in product quality and efficiency, we mainly source our products through
independent manufacturing partners located in Asia. In addition, to maximize responsiveness, we follow
a local-for-local sourcing approach, wherever reasonable. We acknowledge adverse social and
environmental impacts within our supply chain and drive actions to mitigate and reduce those impacts.
With the consumer in mind, we aim to support our markets in having the right product available at the
right point of sale at the right point in time.
Long-term relationships with independent manufacturing partners
To ensure high standards in product quality and efficiency, we outsource almost 100% of our production to
independent manufacturing partners with the vast majority located in Asia. Strong capabilities around
materials and processes have been built up in close collaboration with our strategic suppliers in this region
over several decades. While we provide them with detailed product specifications that cover technical and
sustainability dimensions, they possess excellent expertise in cost-efficient, high-volume production of
footwear, apparel, and accessories. By valuing long-term relationships, we can ensure that this expertise
continues to grow: 65% of our independent manufacturing partners have worked with adidas for at least ten
years, and 37% for over 20 years.
Length of relationship with independent manufacturing partners
Local-for-local sourcing for maximum responsiveness and flexibility
With our responsive and flexible sourcing model, we are able to react quickly to changing order patterns. In
close collaboration with our wholesale partners, we are continuously assessing sell-through and can
replenish product that is particularly sought-after during the season. This helps us to effectively reduce
inventory risk and drive incremental net sales and higher margins by reducing initial order sizes.
We have continued to increase our local-for-local sourcing in several markets such as Greater China, India,
Brazil, and Argentina. For example, we have set up an operating model in Greater China that enables end-
to-end lead-time reduction for articles requiring higher in-season responsiveness. We have improved market
order efficiency and now produce the vast majority of product for the local market in Greater China.
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In addition to ensuring higher responsiveness, we constantly monitor the political and regulatory
environment across the globe and proactively adjust the flow of goods to protect both availability and
profitability.
Vietnam as main sourcing country
In 2025, Vietnam remained the largest sourcing country, accounting for 27% of adidas’ total volume
(2024: 27%), followed by Indonesia at 18% (2024: 19%) and China at 16% (2024: 16%). Overall, 92% of
our total 2025 volume was produced in Asia (2024: 92%). Our largest factory produced approximately 6% of
the total sourcing volume (2024: 5%).
Share of sourcing volumes by product category and country
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Reduction of adverse impacts throughout our supply chain
Greenhouse gas emissions from manufacturing are a major contributor to our CO2e emissions. To address
this, we work with our suppliers to set decarbonization targets, including, but not limited to, increasing the
use of renewable energy sources, scaling the use of low-carbon materials, and demonstrating progress
toward targets that are aligned with the Science Based Target initiative (SBTi). Suppliers’ progress on
decarbonization is considered as part of our broader evaluation of key suppliers’ performance. We also
expect our suppliers to improve water efficiency at Tier 2 factories and to use chemical formulations that
achieve the highest conformance level with ZDHC Manufacturing Restricted Substances List (ZDHC MRSL)
standards. By mapping and addressing deforestation risks, we manage the impact of our supply chain on
biodiversity.
To ensure that we focus on both environmental topics and the interests of the workers in our supply chain,
we have established the Human Rights and Environmental Due Diligence (HREDD) framework. This guides
internal risk assessment and risk management processes in accordance with the United Nations (UN)
Guiding Principles on Business and Human Rights and the Organisation for Economic Co-operation and
Development (OECD) Guidelines for Multinational Enterprises and is in line with applicable laws and
regulations, including the German Supply Chain Due Diligence Act.
►SEE SUSTAINABILITY STATEMENT
Serving consumers and partners through global distribution center network
After production, our products are shipped primarily by sea to our global distribution network of 60 (2024:
60) distribution centers, 21 (2024: 21) of which are company-owned and 39 (2024: 39) of which are
managed by logistics partners. These centers are strategically located across the globe. To enhance
product availability, around half of the centers serve all channels, while the other half are tailored to
specific channels or services. This setup ensures that our products are available when and where the
consumer wants them.
►SEE MARKETS AND SALES CHANNELS
Distribution centers by region
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People and Culture
We believe that our people are the key to the company’s success. Their performance, well-being, and
personal development have a significant impact on brand reputation, consumer satisfaction, and,
ultimately, our financial performance.
Our goal is to develop a culture that values our employees’ experience, unique differences, well-being, and
performance. To support this aim, we rely on our six values – Courage, Ownership, Innovation, Team Play,
Respect, and Integrity – across our people policies and processes, including how we hire, develop,
promote, and evaluate performance. These values underpin our culture and are the essence of our identity.
They underscore the behaviors and mindsets we value in our colleagues, represent the attitude we want to
see in each other, and help us achieve top performance.
Our business model is fundamentally driven by people, encompassing skilled and creative individuals. As a
result, fostering excellent working conditions and supporting freedom of association and the right to
collective bargaining are material for us. This includes ensuring secure employment, promoting a healthy
work-life balance with flexible and fair working time, enhancing employee engagement and development,
creating an inclusive workplace for all employees that leverages everyone’s talent, and providing
competitive and adequate wages. These factors are crucial for attracting and retaining top talent, which in
turn guarantees high product quality and the ability to meet consumer demands.
►SEE ESRS S1 – OWN WORKFORCE
Employees worldwide
64,938
Employee share by region1
1 At year-end.
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Our continued focus on our people can be further explained by our priorities around creating an equal
playing field for all, leadership, and performance. These pillars seek to focus our efforts on people and
culture by:
─Creating a level playing field for everyone: Inclusion means valuing and leveraging the differences of our
talents, consumers, and partners, while ensuring they are treated fairly and respectfully to enhance
performance and unleash creativity. By creating a level playing field for everyone, we ensure that every
individual has an equal opportunity to thrive and unleash high performance. By recruiting talent with
diverse backgrounds and fostering a welcoming environment, we create a workplace where everyone
commits and contributes at their full potential.
Women in leadership positions
41%
─Attracting, developing, and retaining key talent: adidas continues to be recognized as an employer of
choice, consistently earning top positions in leading global rankings. We maintained strong placements
in Forbes’ World’s Best Employers and Universum’s Most Attractive Employers lists. Additionally, adidas
ranked among the top 20 companies in Forbes’ Global Top Companies for Women, and for the second
consecutive year, adidas achieved the number one ranking in Stern Magazine’s category ‘Clothing,
Shoes, Sporting Goods.’ Beyond these achievements, adidas was honored with the RippleMatch Campus
Forward Award for excellence in recruitment strategies, underscoring our commitment to attracting and
developing top talent.
─Building role-model leaders who empower people: Our development offerings focus on growing
leadership behaviors and the essential skills needed to ensure our continued success, across all
different seniorities. In addition, our leaders receive inclusive leadership training through our ‘Leading
with Inclusion’ program. Our ambition is to inspire and nurture talented leaders from our diverse markets
who exemplify our leadership behaviors in their day-to-day work. Through our leadership framework, we
aim to establish a language that can support our people in embedding these behaviors in all moments
and hold each other accountable to the highest standards. We undertake different initiatives to elevate
and enhance our leadership pipeline.
─Creating a premier employee experience: Ensuring a positive and impactful employee experience is a
key focus for us. We do this through listening to feedback from our employees, offering opportunities for
flexibility, and focusing on well-being. To support a healthy lifestyle and mental well-being, our employees
have access to a wide range of sports activities, events, and facilities. We have corporate gyms at many
locations worldwide, including Herzogenaurach, Portland, Gurgaon, Shanghai, Dubai, and Manchester.
Many of our office buildings have lockers and showers, allowing employees to include sports in their
working day or cycle to work. To meet employee needs in a hybrid work setup, programs are both local
and virtual to support teamwork and a healthy lifestyle. Offerings include hybrid sports classes, medical
and psychosocial consultations (in-person and virtual), tools for digital disconnection, and carefully
curated sessions on life topics.
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─Instilling a mindset of continuous learning: We continue to promote a high-performance culture by
developing our employees and rewarding performance. We offer a wide range of learning and
development opportunities, including online learning resources and interactive learning experiences that
provide personal and professional growth opportunities for our workforce. Our investments in digital
learning and development opportunities offer equitable access to learning content and just-in-time
upskilling or reskilling.
─Recognizing and rewarding both individual and team performance: The key focus of our rewards
approach is to attract, retain, and motivate individuals through remuneration and benefits that are
inclusive, fit for purpose, and competitive in the marketplace – thus enabling us to achieve our strategic
objectives. To promote a high-performance culture, it is essential that we focus on performance
management to ensure fair and equitable reward and recognition.
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3
GROUP MANAGEMENT REPORT
FINANCIAL REVIEW
Internal Management System
074
Business Performance
076
Income Statement
078
Statement of Financial Position and Statement of Cash Flows
085
Treasury
092
Financial Statements and Management Report of adidas AG
098
Disclosures Pursuant to § 315a and § 289a of the German Commercial Code
and Explanatory Report
102
Business Performance by Segment
109
Outlook
115
Risk and Opportunity Report
118
Illustration of Risks
126
Illustration of Opportunities
134
Management Assessment of Performance, Risks and Opportunities, and Outlook
136
ANNUAL REPORT 2025
Internal Management System
We are committed to significant value creation – for our company and all its stakeholders. We strive to
create value by converting sales and profit growth into strong operating cash flow, while at the same
time proactively managing our asset base. Our company’s planning and controlling system is therefore
designed to provide a variety of tools to assess our current performance and to align future decisions to
best utilize commercial and organizational opportunities.
Internal management system designed to drive shareholder value
In order to drive and steer value creation, Management focuses on a set of major financial key performance
indicators (KPIs). Sales and operating profit growth, paired with a focus on the management of operating
working capital, are the main contributors to operating cash flow improvements. At the same time, capital
expenditure and working capital investments benefit future operating profit and cash flow development. Our
strong focus on value creation is reflected in Management’s short- and long-term variable compensation
components, which are closely linked to the company’s growth in sales and profitability.
►ADIDAS-GROUP.COM/COMPENSATION
Net sales and operating profit growth
Net sales growth is a reflection of the attractiveness of our product offering driven by innovation and our
ability to create, identify, and respond to the latest consumer trends. To ensure that we have the most
relevant information to assess our respective performance, we exclude foreign currency effects and use
currency-neutral net sales growth as one of our major KPIs.
Operating profit as another major KPI helps to drive and improve our company’s operational performance.
The primary drivers to enhance operating profit are as follows:
─Sales and gross margin development: Management focuses on identifying and exploiting growth
opportunities that not only provide for future top-line improvements but also have the potential to
increase our gross margin. Major levers include reducing promotional activity, driving full-price sales, and
managing product and supply chain costs.
─Operating expense control: Management puts an emphasis on ensuring efficiency and flexibility in the
company’s cost base, especially in marketing and operating overhead expenses. Marketing expenditure
is one of our largest operating expenses and, at the same time, one of the most important mechanisms
for driving brand desirability and growth. Therefore, we are committed to investing into our brand and
products as well as ensuring the effectiveness and efficiency of our marketing activities. We also aim to
improve our operational efficiency by actively managing our operating overhead expenses. In addition to
leveraging our top-line growth, we regularly review our organizational set-up to reduce complexity.
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Cash flow and operating working capital management
Actively managing our liquidity, cash flow, and operating working capital remains a focus for us and
continues to be monitored closely by Management. In general, due to a comparatively low level of fixed
assets required in our business, the efficiency of the balance sheet depends to a large degree on our
operating working capital management. Operating working capital is composed of accounts receivable plus
inventories minus accounts payable.
► SEE STATEMENT OF FINANCIAL POSITION AND STATEMENT OF CASH FLOWS
In this context, the major KPI we use is average operating working capital as a percentage of net sales.
Monitoring the development of this metric facilitates the measurement of our progress in improving the
efficiency of our business cycle. We strive to proactively manage our inventory levels to meet demand in our
markets, ensure fast replenishment, and reduce promotional activity. Inventory aging is controlled carefully
to reduce inventory obsolescence and to minimize clearance activities. To optimize capital tied up in
accounts receivable and accounts payable, we focus on managing collection efforts and payment terms.
Capital expenditure targeted to maximize future returns
Improving the effectiveness of capital expenditure is another major lever to drive our cash flow generation.
We control capital expenditure with a top-down, bottom-up approach. In the first step, Management defines
an overall budget based on investment requests from our markets and functions. In the second step, our
operating segments align their initiatives within the scope of available budget. We evaluate potential return
on planned investments utilizing the net present value method. Risk is accounted for by adding a risk
premium to the cost of capital. By means of scenario planning, the sensitivity of investment returns is
tested against changes in initial assumptions. For large investment projects, timelines and deviations
versus budget are monitored on a monthly basis, and learnings are documented for future capital
expenditure decisions.
Other key performance indicators
In addition to the major financial KPIs, which assess the performance and operational success of our
company, as outlined above, we have also identified a set of KPIs that help us track our progress in other
areas we deem important for success. These KPIs are assessed on a regular basis and include, among
others, employee engagement, the share of female leadership, and carbon intensity per product.
► SEE SUSTAINABILITY STATEMENT ► SEE MANAGEMENT ASSESSMENT OF PERFORMANCE, RISKS AND OPPORTUNITIES, AND OUTLOOK
► SEE ADIDAS-GROUP.COM/COMPENSATION
Structured performance measurement system
We have developed an extensive performance measurement system that uses a variety of tools to measure
the company’s performance. KPIs and other important financial metrics are regularly monitored and
compared against initial targets as well as rolling forecasts. When negative deviations exist between actual
and target numbers, we perform a detailed analysis to identify and address the cause. If necessary, action
plans are implemented to optimize the development of our operating performance. To assess current sales
and profitability development, Management continuously analyzes the performance of our operating
segments. We also benchmark our financial results with those of our major competitors on a regular basis.
Taking into account the year-to-date performance as well as opportunities and risks, the company’s
financial performance is assessed regularly. Finally, as an early indicator of future performance, the results
of any relevant market or consumer research are assessed as available.
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Business Performance
In 2025, adidas recorded better-than-expected results despite macroeconomic challenges and elevated
uncertainty. adidas brand revenues increased 13% for the second consecutive year on a currency-neutral
basis. The growth was broad-based, driven by double-digit increases in all markets and channels. In euro
terms, revenues reached a record level of € 24,811 million, despite a negative currency translation
impact of more than € 1 billion. The company’s gross margin improved 0.8 percentage points to 51.6%,
while operating profit increased by 54%, or more than € 700 million, to € 2,056 million.
Economic and sector development
Global economy faced heightened uncertainty in 202514
The global economy encountered renewed challenges in 2025, reversing earlier signs of stabilization as
uncertainty persisted throughout the year. Tariff-related developments and escalating geopolitical tensions
weighed on global trade and investment, disrupting economic activity across regions. These factors also
increased market and exchange rate volatility. Consumer sentiment remained cautious, reflecting concerns
over economic resilience and purchasing power amid cooling labor markets and moderating wage growth.
Against this backdrop, global gross domestic product (GDP) increased by 2.7% in 2025. Growth in
advanced economies settled at 1.7%, although consumer spending remained subdued. Developing
economies grew by 4.2%, demonstrating agile export activity despite ongoing trade disputes. Globally, risks
associated with heightened political uncertainty and adverse trade policy shifts, a resurgence of inflation,
further geopolitical tensions, as well as supply chain disruptions remain elevated.
Sporting goods industry navigated complex environment in 2025
In 2025, the global sporting goods industry faced a highly volatile environment shaped by rising
macroeconomic pressures and persistent geopolitical uncertainty. US tariff hikes on imports from Asian
manufacturing hubs caused significant cost pressures, prompting companies to implement mitigation
measures, including price increases, with eventual effects on consumer behavior still being uncertain.
Despite these challenges, the sector continued to benefit from strong structural trends, including increasing
sports participation rates as well as growing health and fitness awareness, ongoing popularity of athletic as
well as sport-inspired products for everyday use, and growing demand for comfort propositions. These
trends continue to make the global sporting goods industry fundamentally attractive over the long term. In
the near term, however, risks including unresolved trade disputes, weaker consumer spending, and
geopolitical tensions, remain elevated. These conditions make proximity to end-markets and agility in
responding to shifting external factors essential for success.
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14 Source: World Bank Global Economic Prospects.
Regional GDP development1,2 in %
1 Real change in percent versus prior year. 2024 and 2023 figures restated compared to prior year.
2 Source: World Bank as of December 16, 2025.
3 Includes Emerging Europe and Central Asia.
4 Includes East Asia and Pacific.
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Income Statement
Record revenues driven by 13% currency-neutral growth for the adidas brand
In 2025, currency-neutral revenues for the adidas brand increased 13% for the second consecutive year.
This increase was driven by double-digit growth in all markets and channels, as growth expanded
meaningfully across categories and sports, enabled by both global and local product creation and
activation. Having completed the sale of the remaining Yeezy inventory in 2024, the company’s results for
2025 do not include any Yeezy revenues (2024: around € 650 million). Including Yeezy sales in the prior
year, currency-neutral revenues increased 10%. In euro terms, revenues increased 5% to a record level of
€ 24,811 million in 2025 (2024: € 23,683 million), despite an unfavorable translation impact of more than
€ 1 billion due to the strengthening of the euro against several currencies.
Net sales
+13%
Brand adidas c.n.
€ 24,811 million
Net sales € in millions
24,811
23,683
21,427
22,511
21,234
2025
2024
2023
2022
2021
Double-digit growth in both footwear and apparel
Footwear revenues for the adidas brand grew 12% on a currency-neutral basis in 2025. The broader and
deeper product offering drove double-digit footwear growth across many categories, including Running,
Training, Performance Basketball, and Sportswear. Strong growth in Originals also contributed to the
increase in footwear. Apparel sales grew 15% during the year as brand and product momentum continued
to expand as planned. Differentiated and locally relevant apparel collections fueled double-digit increases in
major categories like Football, Running, Training, and Originals. Accessories grew 6% versus the prior year.
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Double-digit increases across categories and sports
On a currency-neutral basis, Performance revenues increased 15% during 2025 as the brand’s breadth of
growth continued to expand significantly. In Running, growth accelerated sequentially throughout the year to
more than 30%, driven by the record-breaking Adizero footwear family. Adios Pro Evo 2 and Adios Pro 4
models secured multiple major marathon wins, while the Prime X Evo concept shoe enabled a new world
record in the 100 kilometers. The award-winning Evo SL, making Adizero accessible at a compelling price
point, also contributed to increases across the brand’s running footwear business. In addition, everyday
running propositions, such as Supernova, continued to grow strongly alongside matching performance
apparel. In Football, new color packs and performance upgrades for the brand’s iconic franchises Predator
and F50 drove increases in footwear, while apparel growth was fueled by new season on-pitch kits and
culturally inspired collections for the brand’s major clubs as well as the launch of FIFA World Cup 2026
home kits. Double-digit growth in Training was underpinned by the brand’s revamped head-to-toe offerings,
including the Dropset and Rapidmove franchises in footwear and the Optime, Essentials, and Power
collections in apparel. Several other categories, including Outdoor, Specialist Sports, Performance
Basketball, and Motorsport also contributed to the broad-based growth in Performance, on the back of
product innovation and newness that resonated strongly with consumers.
Lifestyle revenues for the adidas brand increased 12% during 2025, driven by double-digit growth in both
Originals and Sportswear. Demand for the brand’s popular Terrace and retro running offering remained
strong and healthy in response to refreshed colorways, new materials, and collaborations tailored to local
consumer preferences. The brand’s Low Profile silhouettes also continued to expand, driven by updated
looks for the Tokyo, Japan, and Taekwondo franchises, from animal-print and metallic versions to
ballet-inspired designs. After reintroducing the Superstar with a community-focused approach, the brand
sequentially scaled the franchise, backed by a global campaign and market-led activations. Besides the
proactive evolution of its classics footwear business, adidas further expanded its lifestyle running and
lifestyle football offerings. Following successful incubations, notably through the award-winning Adistar
Jellyfish, the brand established models such as the Adistar Control and street-ready Predator and F50
versions. The momentum of Originals footwear also expanded into apparel, where the classic Firebird and
Teamgeist collections saw a step up in demand in response to distinct material updates, including denim
and knit, and successful local creation efforts. Collaborations with Pharrell Williams, Oasis, Wales Bonner,
Bad Bunny, Edison Chen, Sporty & Rich, and collections co-created by the brand’s retail partners further
supported growth in Originals. Within Sportswear, adidas successfully leveraged its strong product
momentum in Originals and other major categories into franchises tailored to commercial price points. In
addition, innovative products such as the 3D-printed Climacool shoe and revamped Z.N.E. and Soft Lux
apparel collections were well received by consumers looking for sport-inspired lifestyle products.
►SEE PRODUCT AND MARKETING
Double-digit growth in all markets
Currency-neutral net sales for the adidas brand grew at double-digit rates in all markets in 2025, as the
company’s market teams successfully executed locally relevant product assortments and activations.
Europe (+10%), North America (+10%), and Greater China (+13%) grew revenues at a low-double-digit rate in
2025, implying significant market share gains. Latin America (+22%), Emerging Markets (+17%), and
Japan/South Korea (+14%) recorded even faster growth. In all of these markets, growth was broad-based
as reflected in strong improvements in both the wholesale and DTC business.
►SEE BUSINESS PERFORMANCE BY SEGMENT
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All channels increasing double digits
From a channel perspective, growth for the adidas brand in 2025 was equally broad-based with double-digit
increases in all channels. Strong sell-through rates at retail partners and increased shelf space allocations
continued to drive wholesale revenues, which increased 12% on a currency-neutral basis. Own retail
revenues were up 13%, driven by strong like-for-like growth in the company’s global fleet of own stores and
continued investments into retail doors. E-commerce sales increased 16%, with a continued focus on full-
price propositions. As a result, sales in the brand’s DTC business grew 14%.
Net sales development € in millions
2025
2024
Change
Change
(currency-
neutral)
Brand adidas
Change
(currency-
neutral)1
Net sales by segment2,3
Europe
8,136
7,551
8%
8%
10%
North America
5,087
5,128
(1%)
4%
10%
Greater China
3,623
3,459
5%
9%
13%
Emerging Markets
3,510
3,310
6%
15%
17%
Latin America
2,926
2,772
6%
21%
22%
Japan/South Korea
1,406
1,339
5%
11%
14%
Net sales by product division2,4
Footwear
14,232
13,977
2%
7%
12%
Apparel
8,764
7,937
10%
15%
15%
Accessories
1,815
1,779
2%
6%
6%
Net sales by channel2
Wholesale
14,833
14,172
5%
10%
12%
Direct-to-Consumer (DTC)
9,931
9,490
5%
9%
14%
Own retail
—
—
8%
12%
13%
E-commerce
—
—
1%
6%
16%
Total net sales
24,811
23,683
5%
10%
13%
1 Excluding Yeezy sales in the prior-year period.
2 Differences to total net sales may arise due to items which are not directly attributable.
3 Prior year adjusted due to a reclassification related to Other Businesses.
4 Prior year adjusted due to a reclassification within the product divisions.
Rounding differences may arise.
Cost of sales increase moderately
Cost of sales is defined as the amount paid to third parties for expenses associated with producing and
delivering adidas products. In addition, own-production expenses are also included in the cost of sales.
However, these expenses represent only a very small portion of total cost of sales. In 2025, cost of sales
was € 12,006 million, representing an increase of 3% compared to the prior year level of € 11,658 million.
This development mainly reflects the company’s growth.
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Gross margin up 0.8 percentage points to 51.6%
In 2025, gross profit increased 6% to € 12,804 million from € 12,026 million in 2024, while gross margin
increased 0.8 percentage points to 51.6% (2024: 50.8%). The positive development reflects lower product
and freight costs, a better business mix, as well as a healthy level of full-price sales, which more than
offset the unfavorable impacts from currencies and higher US tariffs.
Gross margin1 in %
51.6
50.8
47.5
47.3
50.7
2025
2024
2023
2022
2021
1 Gross margin = (gross profit / net sales) × 100.
Royalties and other operating income
Royalty and commission income was flat at € 81 million in 2025 (2024: € 81 million), while other operating
income declined 77% to € 41 million from € 174 million in 2024. The decrease in other operating income
was mainly attributable to a one-time accruals release that was recorded in the prior year.
Other operating expenses decline
Other operating expenses, including depreciation and amortization, mainly consist of marketing and point-
of-sale, distribution and selling, as well as general and administration expenses. In 2025, other operating
expenses were down 1% to € 10,871 million (2024: € 10,945 million). As a percentage of sales, other
operating expenses decreased 2.4 percentage points to 43.8% from 46.2% in 2024.
Marketing and point-of-sale expenses increased 8% to € 3,079 million in 2025 (2024: € 2,841 million).
These investments included ‘You Got This,’ adidas’ multi-year brand campaign that features a series of
global and local chapters and ‘The Original,’ a campaign that connects young generations with Originals’
iconic silhouettes. adidas also executed several localized product campaigns and activations. These
featured product launches, such as the Evo SL, the Superstar, the FIFA World Cup 2026 home kits and the
official match ball, as well as brand partner moments such as the ones with Liverpool FC and Oasis,
supported by a multitude of market-led physical events to connect with local sports and streetwear culture.
In addition, the increase reflects new and extended partnerships, such as the Audi F1 team, Penn State,
the Argentine Football Federation, and Anthony Edwards, among many others. As a percentage of sales,
marketing and point-of-sale expenses increased 0.4 percentage points to 12.4% (2024: 12.0%).
Operating overhead expenses decreased 4% to € 7,792 million (2024: € 8,103 million), as the company
continued to invest into its sales and distribution capabilities while managing its overall cost base. As a
percentage of sales, operating overhead expenses decreased 2.8 percentage points to 31.4% from 34.2%
in 2024. Within operating overhead expenses, distribution and selling expenses decreased 1% to
€ 5,877 million in 2025 from € 5,936 million in the prior year. As a percentage of sales, distribution and
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selling expenses decreased 1.4 percentage points to 23.7% from 25.1% in 2024. General and
administration expenses were down 12% to € 1,885 million (2024: € 2,138 million). As a percentage of
sales, general and administration expenses were down 1.4 percentage points to 7.6% (2024: 9.0%).
►SEE NOTE 30
Marketing and point-of-sale expenses in % of net sales
12.4
12.0
11.8
12.3
12.0
2025
2024
2023
2022
2021
Operating overhead expenses in % of net sales
31.4
34.2
35.2
33.3
29.9
2025
2024
2023
2022
2021
EBITDA increases strongly
Earnings before interest, taxes, depreciation, and amortization, as well as impairment losses/reversal of
impairment losses on property, plant, and equipment; right-of-use; and intangible assets (EBITDA)
increased 27% to € 3,124 million in 2025 (2024: € 2,465 million). Total depreciation and amortization as
well as impairment losses/reversal of impairment losses for tangible, right-of-use, and intangible assets
was relatively flat at € 1,135 million in 2025 (2024: € 1,180 million).
EBITDA1 € in millions
3,124
2,465
1,358
1,874
3,066
2025
2024
2023
2022
2021
1 EBITDA = income before taxes (IBT) + net interest expenses + depreciation and amortization + impairment losses – reversal of impairment losses.
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Operating margin reaches 8.3%
Operating profit increased 54%, or more than € 700 million in absolute terms, to € 2,056 million in 2025
(2024: € 1,337 million). This reflects an operating margin of 8.3% in 2025, 2.6 percentage points above
the prior-year level (2024: 5.6%). Having completed the sale of the remaining Yeezy inventory in 2024,
there was no Yeezy contribution to the company’s operating profit in 2025 (2024: around € 200 million).
Operating margin
8.3%
+2.6PP
Operating profit € in millions
2,056
1,337
268
669
1,986
2025
2024
2023
2022
2021
Operating margin1 in %
8.3
5.6
1.3
3.0
9.4
2025
2024
2023
2022
2021
1 Operating margin = (operating profit / net sales) × 100.
Net financial result stable while tax rate improves
Financial income decreased 27% to € 74 million in 2025 (2024: € 101 million), mainly reflecting lower
interest income. Financial expenses declined 2% to € 310 million compared to € 317 million in 2024, as
currency effects, which were less unfavorable than in the prior year, were partly offset by negative
hyperinflation-related effects. Consequently, the company’s net financial result was largely stable at
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negative € 236 million (2024: negative € 215 million). The company’s tax rate improved 2.2 percentage
points to 24.3% in 2025 (2024: 26.5%), reflecting the normalization of profitability levels.
►SEE NOTE 32 ► SEE NOTE 34
Net income from continuing operations increases to € 1,377 million
Driven by significant business improvements in 2025, net income from continuing operations improved
strongly to € 1,377 million (2024: € 824 million). Taking into consideration € 45 million of net income
attributable to non-controlling interests (2024: € 68 million), both basic and diluted earnings per share
(EPS) from continuing operations reached € 7.46 (2024: € 4.24).
Net income/(loss) from continuing operations € in millions
1,377
824
(58)
254
1,492
2025
2024
2023
2022
2021
Basic earnings per share in €
7.46
4.24
(0.67)
1.25
7.47
2025
2024
2023
2022
2021
Net income attributable to shareholders increases to € 1,340 million
In 2025, adidas incurred gains from discontinued operations of € 8 million, net of tax, related to the
Reebok divestiture (2024: € 8 million). The company’s net income attributable to shareholders, which, in
addition to the net income from continuing operations, considers the gains from discontinued operations as
well as net income attributable to non-controlling interests, almost doubled to € 1,340 million in 2025
(2024: € 764 million). As a result, both basic and diluted EPS from continuing and discontinued operations
increased 75% to € 7.51 in 2025 versus € 4.28 in 2024. The total number of shares outstanding was
178,665,018 at the end of 2025 (2024: 178,549,084). The average number of shares used in the
calculation of basic earnings per share (EPS) was 178,559,220 (2024: 178,549,084). For the calculation
of diluted earnings per share (EPS), the average number of shares used was 178,565,330
(2024: 178,563,385).
►SEE NOTE 35
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Statement of Financial Position and Statement of
Cash Flows
Assets
At the end of December 2025, total assets were down 2% to € 20,262 million (2024: € 20,655 million),
mainly related to the decrease of cash and cash equivalents and other current financial assets, partially
offset by the increase of inventories, accounts receivable, and other current assets.
Assets (€ in millions)
20,262
20,655
Cash and cash equivalents
8%
12%
Accounts receivable
13%
12%
Inventories
29%
24%
Fixed assets2
32%
34%
Right-of-use assets (IFRS 16)3
40%
40%
Other assets
18%
19%
1 For absolute figures see Consolidated Statement of Financial Position.
2 Fixed assets = property, plant, and equipment + right-of-use assets + goodwill + other intangible assets + long-term financial assets.
3 As a percentage of fixed assets.
Structure of statement of financial position1 in % of total assets
2025
2024
Total current assets increased 1% to € 11,977 million at the end of December 2025 compared to
€ 11,904 million in 2024. Cash and cash equivalents were down 34% to € 1,617 million at the end of
December 2025 (2024: € 2,455 million). This development was related to operating working capital
investments as well as the increased dividend payout for the year 2024. Inventories increased 17% to
€ 5,832 million at the end of December 2025 (2024: € 4,989 million), reflecting the company’s planned
top-line growth as well as earlier product purchases related to the FIFA World Cup 2026 and faster inbound
deliveries. On a currency-neutral basis, inventories increased 23%.
►SEE NOTES 04–08
Inventories € in millions
5,832
4,989
4,525
5,973
4,009
2025
2024
2023
2022
2021
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Accounts receivable increased 9% to € 2,634 million at the end of December 2025 (2024: € 2,413 million)
as a result of growth in the company’s wholesale business and higher marketplace receivables. On a
currency-neutral basis, receivables were up 18%. Other current financial assets were down 45% to
€ 518 million (2024: € 950 million), mainly related to a decrease in the fair value of financial instruments
and a payment received in connection with the earn-out components of the Reebok divestiture. Other
current assets were up 21% to € 1,208 million at the end of December 2025 (2024: € 997 million), mainly
due to customs holdbacks and higher tax-related receivables.
►SEE NOTES 05–08
Accounts receivable € in millions
2,634
2,413
1,906
2,529
2,175
2025
2024
2023
2022
2021
Total non-current assets decreased 5% to € 8,285 million at the end of December 2025 from
€ 8,751 million in 2024. This development was mainly related to a decrease in fixed assets, which were
down 5% to € 6,576 million at the end of December 2025 (2024: € 6,953 million). Right-of-use assets
decreased 6% to € 2,605 million (2024: € 2,779 million), mainly due to currency effects. Goodwill was
down 6% to € 1,203 million (2024: € 1,275 million), also due to currency effects. Other intangible assets
increased 4% to € 443 million (2024: € 426 million) due to the capitalization of internally generated
software. Other non-current assets increased 43% to € 415 million at the end of December 2025
(2024: € 291 million), reflecting higher customs refund claims. Deferred tax assets amounted to
€ 1,077 million compared to € 1,272 million in 2024.
►SEE NOTES 09–15
Liabilities and equity
Total current liabilities were down 5% to € 9,094 million at the end of December 2025 from € 9,593 million
in 2024. Short-term borrowings increased 13% to € 645 million at the end of December 2025
(2024: € 570 million). This development was related to the reclassification of a eurobond amounting to
€ 400 million to short-term borrowings due to its maturity in 2026 and a general increase of financing
needs in the regions. This was partially offset by the repayment of a eurobond amounting to € 500 million
in November 2025. Accounts payable decreased 6% to € 2,910 million at the end of December 2025
(2024: € 3,096 million), mainly due to exceptionally high sourcing volumes in the fourth quarter of the prior
year. On a currency-neutral basis, accounts payable were down 4%. Current lease liabilities remained stable
at € 603 million at the end of December 2025 (2024: € 607 million). Other current financial liabilities were
up 75% to € 335 million (2024: € 191 million), mainly related to a higher negative fair value of financial
instruments. Other current provisions decreased 21% to € 1,208 million at the end of December 2025
(2024: € 1,538 million), mainly due to reduced provisions for personnel and customs, including a
reclassification from current to non-current. Current accrued liabilities were down 10% to € 2,383 million at
the end of December 2025 (2024: € 2,659 million), mainly due to lower accruals for outstanding invoices
and personnel. Other current liabilities were up 9% to € 652 million at the end of December 2025 from
€ 598 million in 2024, which was mainly related to higher tax liabilities.
►SEE NOTES 16–21
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86
Liabilities and equity (€ in millions)
20,262
20,655
Short-term borrowings
3%
3%
Accounts payable
14%
15%
Long-term borrowings
10%
9%
Other liabilities
42%
45%
Current and non-current lease liabilities (IFRS 16)2
34%
34%
Total equity
30%
28%
1 For absolute figures see Consolidated Statement of Financial Position.
2 As a percentage of other liabilities.
Structure of statement of financial position1 in % of total liabilities and equity
2025
2024
Accounts payable € in millions
2,910
3,096
2,276
2,908
2,294
2025
2024
2023
2022
2021
Total non-current liabilities decreased 3% to € 5,043 million at the end of December 2025 compared to
€ 5,194 million in the prior year. Long-term borrowings were up 4% to € 1,996 million at the end of
December 2025 (2024:€ 1,915 million). This increase was a result of a new eurobond amounting to
€ 500 million issued in October 2025, which was partly offset by the reclassification of a eurobond of
€ 400 million to short-term borrowings due to its maturity in 2026. Non-current lease liabilities were down
7% to € 2,310 million at the end of December 2025 (2024: € 2,495 million), mainly due to currency
effects. Deferred tax liabilities decreased 66% to € 45 million at the end of December 2025 (2024:
€ 133 million). Other non-current provisions were up 24% to € 436 million at the end of December 2025
(2024: € 353 million), reflecting a reclassification of provisions for customs from current to non-current.
Other non-current liabilities were down 7% to € 143 million at the end of December 2025
(2024: € 154 million).
►SEE NOTES 16–24
Shareholders’ equity increased 5% to € 5,776 million at the end of December 2025 versus € 5,476 million
in 2024. This was mainly driven by higher net income, partly offset by the dividend paid to shareholders for
the year 2024, negative currency effects, as well as a decrease of hedging reserves. The equity ratio
increased to 28.5% compared to 26.5% in the prior year.
►SEE NOTE 25
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Equity ratio1 in %
28.5
26.5
25.4
24.6
34.0
2025
2024
2023
2022
2021
1 Equity ratio = shareholders’ equity / total liabilities and equity.
Operating working capital
Operating working capital increased 29% to € 5,556 million at the end of December 2025 (2024:
€ 4,306 million), reflecting the inventory increase to support the company’s planned top-line growth, the
increase in receivables in relation to growth in the wholesale business, and the decline in payables as
sourcing volumes were more evenly distributed than in the prior year. On a currency-neutral basis, operating
working capital was up 41%. Average operating working capital as a percentage of sales increased
3.3 percentage points to 23.0% (2024: 19.7%), which was driven by the company’s operating working
capital investments.
Average operating working capital1 in % of net sales
23.0
19.7
25.7
24.0
20.0
2025
2024
2023
2022
2021
1 Average operating working capital = sum of operating working capital at quarter-ends/4. Operating working capital = accounts receivable + inventories –
accounts payable.
Investment analysis
Capital expenditure is defined as the total cash expenditure for the purchase of tangible and intangible
assets (excluding acquisitions and right-of-use assets according to IFRS 16). Capital expenditure decreased
12% to € 477 million (2024: € 540 million). Capital expenditure for property, plant, and equipment was
down 13% to € 363 million compared to € 419 million in the prior year. The company invested
€ 114 million in intangible assets (2024: € 121 million). Depreciation and amortization, excluding
impairment losses and reversal of impairment losses of tangible and intangible assets, decreased 9% to
€ 482 million in 2025 (2024: € 530 million).
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Controlled space initiatives, which comprise investments in new or remodeled own retail and franchise
stores as well as in shop-in-shop presentations of our products in our customers’ stores, accounted for
52% of total capital expenditure (2024: 50%). Expenditure for IT and logistics represented 27% and 6%,
respectively (2024: 25% and 9%, respectively). In addition, expenditure for administration accounted for
15% (2024: 16%). From a segmental perspective, the majority of the capital expenditure was recorded
centrally at headquarter level, which accounted for 34% (2024: 31%). From a regional perspective, capital
expenditure in North America and Europe accounted for 15% and 14%, respectively (2024: 16% and 16%,
respectively) of the total capital expenditure, followed by Emerging Markets with 13% and Greater China
with 12% (2024: 13% and 13%, respectively) as well as Latin America and Japan/South Korea with 8% and
5%, respectively (2024: 5% and 5%, respectively).
Capital expenditure by type in %
Capital expenditure by segments in %
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Liquidity analysis
Net cash generated from operating activities amounted to € 751 million in 2025 (2024: € 2,910 million).
This development was mainly due to operating working capital investments that offset the higher operating
profit in the period. Adjustments according to IAS 29 ‘Financial Reporting in Hyperinflationary Economies’
are required to be separately disclosed and had a positive impact of € 3 million on the company's 2025
operating cash flow (2024: € 9 million).
► SEE NOTE 37
In 2025, net cash used in investing activities reached a level of € 404 million compared to € 356 million in
2024. This development was mainly due to the purchase of property, plant, and equipment, as well as the
change in investments and other long-term assets.
Net cash used in financing activities amounted to € 1,103 million (2024: € 1,559 million). This was mainly
the result of repayments of lease liabilities, the repayment of a € 500 million eurobond in November 2025,
the dividend payment for the year 2024 as well as interest paid. This development was partly offset by the
proceeds of a € 500 million eurobond issued in October 2025 and changes in short-term borrowings.
Exchange rate effects on cash negatively impacted the company’s cash position by € 82 million (2024:
positive € 29 million). As a result of all these developments, cash and cash equivalents decreased to
€ 1,617 million at the end of December 2025 (2024: € 2,455 million).
Change in cash and cash equivalents € in millions
Adjusted net borrowings at December 31, 2025 amounted to € 4,331 million, compared to € 3,622 million
in 2024. The company’s ratio of adjusted net borrowings over EBITDA improved to 1.4 at the end of
December 2025 (2024: 1.5).
►SEE TREASURY
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Adjusted net borrowings/EBITDA € in millions
1.4
1.5
3.3
3.2
0.7
2025
2024
2023
2022
2021
Off-balance-sheet items
The company’s most significant off-balance-sheet items are commitments for promotion and advertising, for
service arrangements as well as for other contracts. At the end of December 2025, financial commitments
for promotion and advertising decreased 3% to € 7,897 million in 2025 (2024: € 8,122 million). adidas
has outsourced certain logistics and information technology functions, for which it has entered into long-
term contracts. For these service arrangements, financial commitments increased 20% to € 839 million in
2025 (2024: € 669 million). The increase compared to the prior year was mainly related to new IT service
agreements.
►SEE NOTE 38
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Treasury
Corporate Financial Policy
In order to be able to meet the company’s payment commitments at all times, the major goal of our
Financial Policy is to ensure adidas’ solvency, to limit financing risks, and to balance financing costs with
financial flexibility. The operating activities of our segments and the resulting cash inflows represent the
company’s main source of liquidity. Liquidity is planned on a rolling monthly basis under a multi-year
financial and liquidity plan.
Treasury Policy and responsibilities
Our Treasury Policy governs all treasury-related issues, including banking policy and approval of bank
relationships, financing arrangements and liquidity/asset management, currency, interest, equity and
commodity risk management, and the management of intercompany cash flows. Responsibilities are
arranged in a three-tiered approach:
─The Treasury Committee consists of members of the Executive Board and other senior executives who
decide on the Treasury Policy and provide strategic guidance for managing treasury-related topics. Major
changes to our Treasury Policy are subject to the prior approval of the Treasury Committee.
─The Treasury department is responsible for specific centralized treasury transactions and for the global
implementation of our Treasury Policy.
─On a subsidiary level, where applicable and economically reasonable, local managing directors and
finance directors are responsible for managing treasury matters in their respective subsidiaries.
Controlling functions on a corporate level ensure that the transactions of the individual business units
are in compliance with our Treasury Policy.
Centralized Treasury function
In accordance with our Treasury Policy, all worldwide credit lines are directly or indirectly managed by the
central Treasury department. Portions of those lines are allocated to our subsidiaries and sometimes
backed by adidas AG guarantees. As a result of this centralized liquidity management, the company is well
positioned to allocate resources efficiently throughout the organization. The company’s debt is generally
unsecured and may include standard covenants. We maintain good relations with numerous partner banks,
thereby avoiding a high dependency on any single financial institution. Banking partners of the company and
our subsidiaries are required to have at least a ‘BBB–’ long-term investment grade rating by Standard &
Poor’s or an equivalent rating by another leading rating agency. We authorize our companies to work with
banks with a lower rating only in very exceptional cases. To ensure optimal allocation of the company’s
liquid financial resources, subsidiaries transfer excess cash to our headquarters in all instances where it is
legally and economically feasible. In this regard, the standardization and consolidation of our global cash
management and payment processes, including automated domestic and cross-border cash pools, are a
key priority for our centrally managed Treasury department. In addition, the department is responsible for
effective management of our currency exposure and interest rate risks.
►SEE NOTE 02
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Standard covenants
In the case of our committed credit facilities, we have entered into various legal covenants. These legal
covenants may include limits on the disposal of fixed assets, the amount of debt secured by liens, cross-
default provisions, and change of control. However, our financial arrangements do not contain any financial
covenants. If we fail to meet any covenant and were unable to obtain a waiver, borrowings would become
due and payable immediately. As of December 31, 2025, we were in full compliance with all our covenants.
We are fully confident that we will continue to be in compliance with these covenants in the future. We
believe that cash generated from operating activities, together with access to internal and external sources
of funds, will be sufficient to meet our future operating and capital needs.
Credit ratings
adidas has strong investment-grade ratings from Standard & Poor’s and Moody’s. In June 2025, S&P
upgraded the rating from ‘A-’ to ‘A,’ citing stronger-than-expected deleveraging and sustained momentum in
underlying operating performance. Moody’s rates adidas ‘A3.’ The outlook for both ratings is stable.
Overall, adidas’ investment-grade credit ratings continue to ensure an efficient access to capital markets.
Syndicated credit facility
adidas entered into a € 1,500 million syndicated credit facility with twelve of its partner banks in November
2020. This credit facility agreement was subsequently amended in October 2021 and in November 2022.
The amended and restated credit facility with then eleven partner banks had a size of € 2,000 million. In
December 2023, adidas reduced the size of the syndicated credit facility, which runs until November 2027,
to € 1,864 million and the number of lending banks to ten partner banks.
Outstanding bonds
adidas currently has five bonds outstanding. Most recently, in 2025, the company issued a € 500 million
five-year bond maturing in November 2030 with a coupon of 2.75%. This issuance complements the
existing maturity profile, which extends to September 2035. While all outstanding bonds are eurobonds,
adidas also issued a € 500 million sustainability bond in September 2020, the proceeds of which were
fully allocated to eligible sustainable projects by September 2023, as defined in the Sustainability Bond
Framework. All bonds are listed on the Luxembourg Stock Exchange and have denominations of € 100,000
each, except for the bond maturing in October 2026, with a denomination of € 1,000 each.
►SEE NOTE 16
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Maturity profile and coupons of adidas bonds1
1 Coupons are fixed.
Additional credit lines
In addition to the syndicated credit facility and access to bond markets, the company’s financial flexibility is
ensured by the availability of further credit facilities. At the end of 2025, committed and uncommitted credit
lines, including the syndicated loan facility, amounted to € 3,599 million (2024: € 3,656 million), of which
€ 3,339 million was unutilized (2024: € 3,560 million). Committed and uncommitted credit lines represent
approximately 53% and 47% of total credit lines, respectively (2024: 52% and 48%, respectively). In
addition, we have an unused multi-currency commercial paper program in the amount of € 2,000 million
available (2024: € 2,000 million). We monitor the ongoing need for available credit lines based on the
current level of debt and future financing requirements.
Gross borrowings increase slightly
The company’s gross borrowings, the vast majority of which are denominated in euro, are composed of
bank borrowings as well as outstanding bonds. Gross borrowings amounted to € 2,642 million at the end
of 2025 (2024: € 2,485 million). The total amount of bonds outstanding at the end of 2025 was € 2,389
million (2024: € 2,389 million). Bank borrowings amounted to € 252 million at the end of 2025 compared
to € 96 million in the prior year.
Cash and cash equivalents
1,617
2,455
Bank borrowings
252
96
Eurobonds
2,389
2,389
Gross total borrowings
2,642
2,485
Net (borrowings)/cash
(1,024)
(30)
Financing structure € in millions
2025
2024
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As of December 31, 2025, cash and cash equivalents include € 287 million (2024: € 325 million) held by
subsidiaries that were subject to foreign exchange control (e.g., Russia) or other legal restriction and hence
were not anytime available for general use by adidas AG or other subsidiaries.
Debt maturity profile
In 2026, assuming unchanged maturities, debt instruments of € 645 million will mature. This compares to
€ 570 million that matured in the course of 2025.
Remaining time to maturity of gross borrowings € in millions
Adjusted net borrowings of € 4,331 million
Adjusted net borrowings on December 31, 2025, amounted to € 4,331 million, compared to
€ 3,622 million on December 31, 2024. This development was mainly due to the decline in cash and cash
equivalents, while borrowings increased slightly.
►SEE STATEMENT OF FINANCIAL POSITION AND STATEMENT OF CASH FLOWS
Adjusted (net borrowings)/net cash1,2 € in millions
(4,331)
(3,622)
(4,518)
(6,047)
(2,082)
2025
2024
2023
2022
2021
1 2021 figure was restated to reflect methodology revision in 2022.
2 2021 figure reflects the reclassification of the Reebok business to assets or liabilities held for sale.
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Adjusted net borrowings include the present value of future lease and pension liabilities. In 2022, the
methodology for calculating adjusted net borrowings was revised to align with broader market practice and
the approach of rating agencies. The main change of the methodology revision was the elimination of
income tax adjustments from net borrowings.
►SEE NOTE 25
Short-term borrowings
645
570
Long-term borrowings
1,996
1,915
Current and non-current lease liabilities
2,913
3,102
Pensions and similar obligations
106
144
Factoring
—
21
Subtotal
5,661
5,752
Cash and cash equivalents
1,617
2,455
Less trapped cash
287
325
Less accessible cash and cash equivalents
1,330
2,130
Adjusted net borrowings
4,331
3,622
Composition of adjusted net borrowings € in millions
2025
2024
Leverage ratio significantly below 2.0
The company remains committed to an adjusted net borrowings below two times EBITDA (Earnings before
interests, taxes, depreciation and amortization and impairment losses and reversals) over the long term.
This ratio amounted to 1.4 at the end of December 2025 (2024: 1.5), reflecting the overproportionate
increase in EBITDA compared to the prior-year period.
►SEE INCOME STATEMENT ►SEE STATEMENT OF FINANCIAL POSITION AND STATEMENT OF CASH FLOWS ►SEE NOTE 25
Adjusted net borrowings/EBITDA
1.4
Interest rate increases
The weighted average interest rate on the company’s gross borrowings increased to 3.1% in 2025
(2024: 2.5%). This development was due to higher financing needs in some subsidiaries in markets with
high interest rates and due to the repayment of a zero-coupon eurobond at the end of 2024. Fixed-rate
financing represented 91% of total gross borrowings at the end of 2025 (2024: 98%). Variable-rate
financing accounted for 9% of total gross borrowings at the end of 2025 (2024: 2%).
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Interest rate development1 in %
3.1
2.5
1.6
0.8
0.7
2025
2024
2023
2022
2021
1 Weighted average interest rate of gross borrowings.
Effective foreign exchange management is a key priority
As a globally operating company, adidas is exposed to currency risks. Therefore, effective currency
management is a key focus of our Treasury department, with the aim of reducing the impact of currency
fluctuations on non-euro-denominated net future cash flows. In this regard, hedging US dollars is a central
part of our hedging program. This is a direct result of our Asian-dominated sourcing, which is largely
denominated in US dollars. In 2025, our Treasury department managed a net deficit of around US $ 8.7
billion related to business activities (2024: US $ 5.0 billion). Thereof, around US $ 6.9 billion was against
the euro (2024: US $ 3.6 billion). As governed by our Treasury Policy, we have established a hedging
program on a rolling basis up to 24 months in advance, under which the vast majority of the anticipated
seasonal hedging volume is secured approximately six months prior to the start of a season. In rare
instances, hedges are contracted beyond the 24-month horizon. We had largely covered our anticipated
hedging needs for 2026 as of the end of 2025. At the same time, we have already started hedging our
exposure for 2027. The use of different hedging instruments, such as foreign exchange contracts, currency
options, and swaps, or the combination of different instruments protect us against unfavorable currency
movements.
►SEE SOURCING AND SUPPLY CHAIN ►SEE RISK AND OPPORTUNITY REPORT ►SEE NOTE 28
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Financial Statements and Management Report of
adidas AG
adidas AG is the parent company of the adidas Group. It includes operating business functions, primarily
for the German market, as well as corporate headquarter functions such as Marketing, IT, Treasury, Taxes,
Legal, and Finance. adidas AG also administers the company’s shareholdings.
Operating activities and capital structure of adidas AG
The majority of the operating business of adidas AG consists of the sale of merchandise to wholesale
partners and own retail activities.
In addition to its own trading activities, the results of adidas AG are significantly influenced by its holding
function for the adidas Group. This is reflected primarily in currency effects, cost recharges for services
provided, interest result, and income from investments in related companies.
The risks and opportunities as well as the future development of adidas AG largely reflect those of the
adidas Group.
►SEE OUTLOOK ►SEE RISK AND OPPORTUNITY REPORT
The asset and capital structure of adidas AG is significantly impacted by its holding and financing function
for the adidas Group. For example, 55% of total assets as of December 31, 2025, related to financial
assets (2024: 49%), which primarily consist of shares in affiliated companies. Intercompany accounts,
through which transactions between affiliated companies are settled, represent another 24% of total assets
(2024: 17%) and 25% of total equity and liabilities as of December 31, 2025 (2024: 29%).
Preparation of accounts
Unlike the consolidated financial statements, which are in conformity with the IFRS Accounting Standards,
as adopted by the European Union as of December 31, 2025, the following financial statements of adidas
AG have been prepared in accordance with the rules set out in the German Commercial Code
(Handelsgesetzbuch – HGB).
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98
Income statement in accordance with HGB
Net sales
5,673
5,068
Change in finished and unfinished goods
—
—
Total output
5,673
5,068
Other operating income
543
687
Cost of materials
(1,997)
(1,845)
Personnel expenses
(829)
(891)
Depreciation and amortization
(121)
(137)
Other operating expenses
(3,011)
(3,150)
Operating result
258
(268)
Financial result
1,586
500
Taxes
(114)
(83)
Net income
1,729
149
Retained earnings brought forward
78
286
Transfer to revenue reserves
(800)
—
Utilization for the issuance of adidas AG shares
15
—
Retained earnings
1,022
435
Statement of income in accordance with HGB (Condensed) € in millions
2025
2024
Royalty and commission income
2,864
2,475
adidas Germany
1,865
1,673
Foreign subsidiaries
66
75
Central distribution unit
55
78
Other revenues
823
767
Total
5,673
5,068
adidas AG net sales € in millions
2025
2024
Sales of adidas AG comprise external revenues generated by adidas Germany as well as revenues from
foreign subsidiaries. Revenues of adidas AG also include royalty and commission income, mainly from
affiliated companies, revenues from the central distribution unit and other revenues, which mainly consist
of costs recharged to subsidiaries. In 2025, adidas AG net sales increased 12% to € 5,673 million
compared to € 5,068 million in the prior year.
In 2025, other operating income of adidas AG decreased 21% to € 543 million (2024: € 687 million). This
development was primarily due to lower positive currency effects and less releases of accruals and
provisions.
In 2025, other operating expenses for adidas AG decreased 4% to € 3,011 million (2024: € 3,150 million).
This was largely attributable to donations.
Depreciation and amortization for adidas AG relating to intangible and tangible fixed assets decreased 12%
to € 121 million in 2025 (2024: € 137 million).
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In 2025, adidas AG generated an operating income of € 258 million (2024: € operating loss 268 million).
This development is mainly due to higher net sales and lower expenses.
The financial result of adidas AG increased 217% to € 1,586 million in 2025 (2024: € 500 million). The
increase was attributable to higher income from dividends.
Net income, after taxes of € 114 million (2024: € 83 million), amounted to € 1,729 million in 2025 and
was higher than the prior year of € 149 million.
Balance sheet in accordance with HGB
Assets
Intangible assets
394
359
Property, plant, and equipment
635
652
Financial assets
5,711
4,425
Fixed assets
6,740
5,436
Inventories
39
38
Receivables and other assets
2,694
1,733
Cash and cash equivalents, securities
800
1,648
Current assets
3,533
3,419
Prepaid expenses
185
153
Total assets
10,457
9,008
Equity and liabilities
Shareholders’ equity
3,864
2,479
Provisions
939
956
Liabilities and other items
5,654
5,573
Total equity and liabilities
10,457
9,008
Balance sheet in accordance with HGB (Condensed) € in millions
December 31,
2025
December 31,
2024
At the end of December 2025, total assets increased 16% to € 10,457 million compared to € 9,008
million in the prior year. This development was mainly a result of the increase in financial assets as well as
receivables and other assets.
Shareholders’ equity increased 56% to € 3,864 million at the end of 2025 (2024: € 2,479 million). The
equity ratio increased to 37.0% (2024: 27.5%).
Provisions decreased 2% to € 939 million at the end of 2025 (2024: € 956 million).
At the end of December 2025, liabilities and other items increased 1% to € 5,654 million
(2024: € 5,573 million). This is mainly due to higher VAT liabilities and liabilities to group companies.
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Development of cash and cash equivalents
adidas AG has a syndicated credit facility of € 1,864 million and additional bilateral credit lines (including
overdrafts) of € 731 million. In addition, the company has a multi-currency commercial paper program in an
amount of € 2,000 million available.
►SEE TREASURY
In 2025, operating activities of adidas AG resulted in a cash outflow of € 225 million (2024: cash inflow
€ 55 million). The change versus the prior year was mainly a result of higher receivables. Net cash inflow
from investment activities was € 430 million (2024: € 525 million). The reduction was primarily attributable
to higher investments in financial assets and in the other direction higher dividend income from
subsidiaries. Financing activities resulted in a net cash outflow of € 551 million (2024: € 345 million). The
net cash outflow from financing activities mainly relates to the dividend payment to the shareholders of
adidas AG and interest payments. As a result of these developments, cash and cash equivalents of adidas
AG decreased to € 78 million at the end of December 2025 compared to € 424 million at the end of the
prior year.
adidas AG is able to meet its financial commitments at all times.
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Disclosures Pursuant to § 315a and § 289a of the
German Commercial Code and Explanatory Report
Composition of subscribed capital
The nominal capital of adidas AG amounts to € 180,000,000 (as at December 31, 2025) and is divided
into the same number of registered no-par-value shares with a notional pro rata amount in the nominal
capital of € 1 each. The nominal capital and the number of shares did not change in the 2025 financial
year. The shares are fully paid in. Any claim on the part of the shareholders to the issuance of individual
share certificates is generally excluded pursuant to § 4 section 7 of the Articles of Association unless such
issuance is required in accordance with the regulations valid at a stock exchange at which the shares are
admitted. Pursuant to § 67 section 2 German Stock Corporation Act (Aktiengesetz – AktG), in relation to
adidas AG, only a person who is registered accordingly in the share register shall be deemed a shareholder.
Each share grants one vote at the Annual General Meeting and determines the shareholders’ share in the
company’s profit. All shares carry the same rights and obligations. The shareholders’ individual rights and
obligations follow from the provisions of the German Stock Corporation Act, in particular from §§ 12, 53a et
seq., 118 et seq., and 186 AktG. As at December 31, 2025, adidas AG held in total 1,334,982 treasury
shares, which do not confer any rights to the company in accordance with § 71b AktG.
►SEE NOTE 25
In the USA, adidas AG has issued American Depositary Receipts (ADRs). ADRs are deposit certificates of
non-US shares that are traded instead of the original shares on US stock exchanges. Two ADRs equal one
adidas AG share.
►SEE OUR SHARE
Restrictions on voting rights or transfer of shares
The company is not aware of any contractual agreements with adidas AG or other agreements restricting
voting rights or the transfer of shares. However, based on the Fair Play Code of Conduct and internal
guidelines of adidas AG and based on Article 19 section 11 of the Regulation (EU) No 596/2014 (Market
Abuse Regulation), particular trade prohibitions do exist for members of the Supervisory Board and the
Executive Board as well as employees with regard to the purchase and sale of adidas AG shares in
connection with the (time of) publication of quarterly results as well as half-year and full-year financial
reports.
In addition, restrictions of voting rights may exist pursuant to, inter alia, § 136 AktG or for treasury shares
pursuant to § 71b AktG as well as due to capital market regulations, in particular pursuant to §§ 33 et seq.
German Securities Trading Act (Wertpapierhandelsgesetz – WpHG).
The shares that were issued to employees of adidas AG in the context of the employee stock purchase plan
and to employees of subsidiaries participating in the employee stock purchase plan are not subject to any
lock-up periods, unless such a lock-up period is stipulated in locally applicable regulations. Employees who
hold the shares which they purchased themselves (investment shares) for at least one year will
subsequently receive one share for every six investment shares without having to pay for such share
(matching share) if they are still adidas employees at that point in time. If employees transfer, pledge, or
hypothecate investment shares in any way during the one-year vesting period, the right to receive matching
shares ceases.
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Shareholdings in share capital exceeding 10% of voting rights
The company has not been notified of, and is not aware of, any direct or indirect shareholdings in the share
capital of adidas AG reaching or exceeding 10% of the voting rights.
Shares with special rights
There are no shares bearing special rights. In particular, there are no shares with rights conferring powers
of control.
Voting right control if employees have a share in the capital
Like other shareholders, employees who hold adidas AG shares can exercise their control rights in
accordance with statutory provisions and the Articles of Association. This also applies to the shares
acquired by a service provider as part of the employee stock purchase plan. Employees may exercise their
voting rights from these shares directly or indirectly.
Executive Board appointment and dismissal
Pursuant to § 6 of the Articles of Association and § 84 AktG, the Supervisory Board is responsible for
determining the exact number of members of the Executive Board, for their appointment and dismissal as
well as for the appointment of the Chief Executive Officer (CEO). The adidas AG Executive Board, which, as
a basic principle, comprises at least two members, consists of the CEO and three further members as at
the balance sheet date. Executive Board members may be appointed for a maximum period of five years.
Such appointments may be renewed and the terms of office may be extended, provided that no term
exceeds five years.
►SEE EXECUTIVE BOARD
The Supervisory Board may revoke the appointment as a member of the Executive Board or CEO for good
cause such as gross negligence of duties or a vote of no confidence by the Annual General Meeting.
As adidas AG is subject to the regulations of the German Co-Determination Act (Mitbestimmungsgesetz –
MitbestG), the appointment of Executive Board members and also their dismissal requires a majority of at
least two thirds of the Supervisory Board members (§ 31 MitbestG). If such a majority is not established in
the first vote by the Supervisory Board, the Mediation Committee has to present a proposal which, however,
does not exclude other proposals. The appointment or dismissal is then made in a second vote with a
simple majority of the votes cast by the Supervisory Board members. Should the required majority not be
established in this case either, a third vote, again requiring a simple majority, must be held in which the
Chair of the Supervisory Board has two votes.
If the Executive Board does not have the required number of members, the competent court must, in urgent
cases, make the necessary appointment upon application (§ 85 section 1 AktG).
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Amendments to the Articles of Association
Pursuant to §§ 119 section 1 number 6, 179 section 1 sentence 1 AktG, the Articles of Association of
adidas AG can, in principle, only be amended by a resolution of the Annual General Meeting. Pursuant to §
21 section 3 of the Articles of Association in conjunction with § 179 section 2 sentence 2 AktG, the Annual
General Meeting of adidas AG principally resolves upon amendments to the Articles of Association with a
simple majority of the votes cast and with a simple majority of the nominal capital represented when
passing the resolution. If mandatory legal provisions stipulate a larger majority of voting rights or capital,
this majority is applicable. When it comes to amendments solely relating to the wording, the Supervisory
Board is authorized to make these modifications in accordance with § 179 section 1 sentence 2 AktG in
conjunction with § 10 section 1 sentence 2 of the Articles of Association.
Authorizations of the Executive Board
The authorizations of the Executive Board are regulated by §§ 76 et seq. AktG in conjunction with §§ 7
and 8 of the Articles of Association. The Executive Board is responsible, in particular, for managing the
company and represents the company judicially and extra-judicially.
Authorization of the Executive Board to issue shares
The authorization of the Executive Board to issue shares is regulated by § 4 of the Articles of Association
and by statutory provisions:
Authorized Capital
─Until June 5, 2030, the Executive Board is authorized to increase the nominal capital, subject to
Supervisory Board approval, by issuing new shares against contributions in cash once or several times by
no more than € 50,000,000 altogether (Authorized Capital 2025/I). The Executive Board may, subject to
Supervisory Board approval, exclude residual amounts from shareholders' subscription rights.
─Until June 5, 2030, the Executive Board is also authorized to increase the nominal capital, subject to
Supervisory Board approval, by issuing new shares against contributions in kind and/or cash once or
several times by no more than € 20,000,000 altogether (Authorized Capital 2025/II). The Executive
Board is authorized, subject to Supervisory Board approval, to exclude residual amounts from
shareholders’ subscription rights and to wholly or partly exclude shareholders’ subscription rights when
issuing shares against contributions in kind. Additionally, the Executive Board may, subject to
Supervisory Board approval, exclude shareholders’ subscription rights if the new shares against
contributions in kind are issued at a price not significantly below the stock market price of the company’s
shares already quoted on the stock exchange at the point in time when the issue price is ultimately
determined, which should be as close as possible to the placement of the shares; this exclusion of
subscription rights can also be associated with the listing of the company’s shares on a foreign stock
exchange. The authorization to exclude subscription rights under this authorization, however, may only be
used to the extent that the pro-rata amount of the new shares in the nominal capital together with the
pro-rata amount in the nominal capital of other shares, which have been issued by the company since
May 15, 2025, subject to the exclusion of subscription rights, on the basis of an authorized capital or
following a repurchase or for which subscription or conversion rights or subscription or conversion
obligations have been granted through the issuance of convertible bonds and/or bonds with warrants
while excluding subscription rights, does not exceed 10% of the nominal capital existing on the date of
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the entry of this authorization with the Commercial Register or – if this amount is lower – as of the
respective date on which the resolution on the utilization of the authorization is adopted. The previous
sentence does not apply to the exclusion of subscription rights for residual amounts. The Authorized
Capital 2025/II must not be used to issue shares within the scope of compensation or participation
programs for Executive Board members or employees or for members of the management bodies or
employees of affiliated companies.
►SEE NOTE 25
Contingent Capital
The nominal capital of the company is conditionally increased by up to € 12,500,000 (Contingent
Capital 2022). The Contingent Capital serves the purpose of granting holders or creditors of bonds that
were issued based on the resolution of the Annual General Meeting on May 12, 2022, option or conversion
rights relating to not more than a total of 12,500,000 shares in compliance with the corresponding
conditions of the bonds. Based on the authorization granted by the Annual General Meeting on
May 12, 2022, the Executive Board is authorized to issue bonds with warrants and/or convertible bonds
(together ‘bonds’) in an aggregate nominal value of up to € 4,000,000,000 with or without a limited term
against contributions in cash once or several times until May 11, 2027, and to guarantee bonds issued by
subordinated Group companies. The Executive Board is also authorized, subject to Supervisory Board
approval, to exclude shareholders’ subscription rights for bonds insofar as this is required for residual
amounts, and to also exclude shareholders’ subscription rights insofar as and to the extent that this is
necessary for granting subscription rights to which holders or creditors of previously issued bonds are
entitled. Finally, the Executive Board is authorized, subject to Supervisory Board approval, to also exclude
shareholders’ subscription rights insofar as the bonds are issued against contributions in cash and the
issue price of the bonds is not significantly below the hypothetical market value of these bonds and the
number of shares to be issued do not exceed 10% of the nominal capital. Shares that are issued or sold in
accordance with § 186 section 3 sentence 4 AktG during the term of this authorization until its utilization,
as well as shares to be issued or granted during the term of this authorization on the basis of bonds issued
with the exclusion of subscription rights in accordance with this provision utilizing another authorization,
shall be attributed to the aforementioned limit of 10%. The total number of shares to be issued under
bonds which are issued with the exclusion of subscription rights based on the authorization and of shares
that are issued from an authorized capital with the exclusion of subscription rights during the term of the
authorization may not exceed a pro-rata amount of the nominal capital of 10% on the date of the entry of
this authorization with the Commercial Register. Notwithstanding the Supervisory Board’s right to determine
further approval requirements, the Executive Board requires the Supervisory Board’s approval for the
issuance of bonds based on the resolution of the Annual General Meeting on May 12, 2022, with the
exclusion of shareholders' subscription rights.
The Executive Board has so far not utilized the authorization to issue bonds granted by the Annual General
Meeting on May 12, 2022.
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Authorization of the Executive Board to repurchase shares
The authorizations of the Executive Board to repurchase adidas AG shares arise from §§ 71 et seq. AktG
and, as at the balance sheet date, from the authorization granted by the Annual General Meeting on
May 11, 2023.
Until May 10, 2028, the Executive Board is authorized to repurchase adidas AG shares in an amount
totaling up to 10% of the nominal capital at the date of the resolution (or, as the case may be, a lower
amount of nominal capital at the date of utilization of the authorization) for any lawful purpose and within
the legal framework. The authorization may be used by the company but also by its subordinated Group
companies or by third parties on account of the company or its subordinated Group companies or third
parties assigned by the company or one of its subordinated Group companies.
The repurchase can be carried out via the stock exchange, through a public invitation to submit sale offers,
through a public repurchase offer, or through granting tender rights to shareholders. The authorization
furthermore sets out the lowest and highest nominal value that may be granted in each case.
The purposes for which treasury shares repurchased based on this authorization may be used are set out
in the resolution on Item 8 of the Agenda for the Annual General Meeting held on May 11, 2023. The
shares may, in particular, be used as follows:
─They may be sold on the stock exchange or through a public offer to all shareholders in relation to their
shareholding quota; in case of an offer to all shareholders, subscription rights for residual amounts are
excluded. The shares may also be sold differently, provided the shares are sold in exchange for a cash
payment and at a price that, at the time of the sale, is not significantly below the stock market price of
the company’s shares with the same features; the prorated amount of the nominal capital that is
attributable to the aggregate number of shares sold under this authorization may not exceed 10% of the
company’s nominal capital. The prorated amount of the nominal capital attributable to new shares, which
may be issued between May 11, 2023, and the sale of the shares based on an authorized capital while
excluding shareholders subscription rights pursuant to §§ 203 section 1, 186 section 3 sentence 4 AktG
is attributed to the limit of 10%. Likewise, the prorated amount of the nominal capital that is attributable
to shares that may be issued due to bonds with warrants and/or convertible bonds, which are linked to
subscription or conversion rights or obligations or the company’s right to delivery of shares, provided
these bonds are issued on the basis of authorizations pursuant to §§ 221 section 4, 186 section 3
sentence 4 AktG between May 11, 2023, and the sale of the shares, shall also be attributed to the limit
of 10%.
─The shares may be offered and assigned as consideration for the direct or indirect acquisition of
companies, parts of companies or participations in companies or other business assets, especially real
estate and rights to real estate, or receivables (also from the company) or within the scope of company
mergers.
─They may be offered and sold as consideration for the acquisition of industrial property rights or
intangible property rights or for the acquisition of licenses relating to such rights, also through
subordinated Group companies.
─They may be used for purposes of meeting the subscription or conversion rights or obligations or the
company’s right to delivery of shares arising from bonds with warrants and/or convertible bonds issued
by the company or its subordinated Group companies.
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─In connection with employee stock purchase plans, the shares may be used in favor of (current and
former) employees of the company and its affiliated companies as well as in favor of (current and former)
members of management bodies of the company’s affiliated companies, whereas the amount of shares
must not exceed 5% of the nominal capital neither at the point in time when this authorization becomes
effective nor at the point in time when the shares are used. Shares assigned to members of the
Executive Board as compensation in the form of a share bonus based on this authorization are to be
attributed to this limit.
─They may be canceled without such cancellation requiring an additional resolution of the Annual General
Meeting.
Furthermore, the shares may be assigned to members of the Executive Board as compensation in the form
of a share bonus subject to the provision that resale by the Executive Board members shall only be
permitted following a lock-up period of at least four years. Responsibility in this case lies with the
Supervisory Board. The amount of shares which may be used for such purposes must not exceed 5% of the
nominal capital, neither at the point in time when this authorization becomes effective nor at the point in
time when the shares are used or promised. Shares used for employee stock purchase plans based on this
authorization shall be attributed to this limit.
The rights of shareholders to subscribe treasury shares shall be excluded to the extent that such shares
are used pursuant to the aforementioned authorization. The Supervisory Board may determine that
transactions based on this authorization may only be carried out subject to the approval of the Supervisory
Board or one of its committees.
Within the scope of the authorization resolved upon by the Annual General Meeting on May 11, 2023, the
Executive Board is furthermore authorized to conduct the share buyback also by using equity derivatives
which are arranged with a credit institution or financial services institution in close conformity with market
conditions or by using a multilateral trading facility within the meaning of § 2 section 6 Stock Exchange Act
(Börsengesetz). adidas AG is authorized to acquire options that entitle the company to purchase shares of
the company upon the exercise of the options (call options) and/or to sell options that require the company
to purchase shares of the company upon the exercise of the options (put options) or to use a combination
of call and put options or other equity derivatives if the option conditions ensure that the shares delivered
for these equity derivatives were purchased in compliance with the principle of equal treatment. All share
purchases using the aforementioned equity derivatives are limited to a maximum value of 5% of the
nominal capital existing at the date on which the resolution was adopted by the Annual General Meeting (or,
as the case may be, a lower amount of nominal capital at the date of exercising the authorization). The
term of the equity derivatives may not exceed 18 months and must furthermore be chosen in such a way
that the shares are purchased upon the exercise of the equity derivatives no later than May 10, 2028. The
authorization to purchase adidas AG shares while using equity derivatives or via multilateral trading
facilities also contains specifications on the highest and lowest amount of consideration per share that
may be granted in each case.
For the use, the exclusion of subscription rights and the cancellation of shares purchased using equity
derivatives or a multilateral trading facility, the general provisions adopted by the Annual General Meeting
(as set out earlier) apply accordingly.
In the 2025 financial year, the Executive Board did not use the authorization to purchase adidas AG shares.
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Change of control/compensation agreements
The essential agreements that provide for regulations in the case of a change of control are the material
financing agreements of adidas AG. In the case of a change of control, these agreements, as is customary
in the market, entitle the creditor/bondholder to termination and early calling-in.
No compensation agreements were entered into with members of the Executive Board or employees
relating to the event of a takeover bid.
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Business Performance by Segment
adidas is reporting its financial and operating performance via the following breakdown: Europe, North
America, Greater China, Emerging Markets, Latin America, and Japan/South Korea. In 2025, currency-
neutral revenues for the adidas brand increased at a double-digit rate in all markets, reflecting its broad-
based momentum as well as the locally relevant product ranges and activations around the globe.
Europe
In 2025, sales for the adidas brand in Europe grew 10% on a currency-neutral basis. Growth was broad
based, led by double-digit increases in Performance, including Running, Training, Specialist Sports, and
Performance Basketball. Lifestyle revenues increased at a high-single-digit rate, driven by double-digit
growth in Sportswear and high-single-digit increases in Originals. Including Yeezy sales in the prior year,
currency-neutral revenues grew by 8%. In euro terms, sales also increased 8% to € 8,136 million from
€ 7,551 million in 2024.
Net sales in Europe
+10%
Brand adidas c.n.
€ 8,136 million
Net sales
8,136
7,551
8%
8%
10%
Gross profit
4,195
3,795
11%
—
—
Gross margin
51.6%
50.3%
1.3pp
—
—
Operating expenses
2,504
2,310
8%
—
—
Operating expenses in % of net sales
30.8%
30.6%
0.2pp
—
—
Operating profit
1,692
1,485
14%
—
—
Operating margin
20.8%
19.7%
1.1pp
—
—
1 Excluding Yeezy sales in the prior-year period.
Europe at a glance € in millions
2025
2024
Change
Change
(currency-
neutral)
Brand adidas
Change
(currency-
neutral)1
Gross margin in Europe increased 1.3 percentage points to 51.6% from 50.3% in 2024, mainly reflecting
lower sourcing costs. Operating expenses were up 8% to € 2,504 million versus € 2,310 million in 2024,
driven by increases in both marketing expenditure and operating overhead costs. As a percentage of sales,
operating expenses were up 0.2 percentage points to 30.8% (2024: 30.6%). Operating profit in Europe
increased 14% to € 1,692 million versus € 1,485 million in the prior year. The operating margin improved
1.1 percentage points to 20.8% (2024: 19.7%).
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North America
Sales for the adidas brand in North America increased 10% on a currency-neutral basis. The increase was a
result of double-digit growth in both Lifestyle and Performance. In Lifestyle, both Originals and Sportswear
grew double digits while broad-based increases in Performance were led by Running, Football, Training, and
Performance Basketball. Including Yeezy sales in the prior year, currency-neutral revenues grew by 4%. In
euro terms, sales were down 1% to € 5,087 million due to unfavorable currency translation effects (2024:
€ 5,128 million).
Net sales in North America
+10%
Brand adidas c.n.
€ 5,087 million
Net sales
5,087
5,128
(1%)
4%
10%
Gross profit
2,312
2,210
5%
—
—
Gross margin
45.4%
43.1%
2.3pp
—
—
Operating expenses
1,792
1,788
0%
—
—
Operating expenses in % of net sales
35.2%
34.9%
0.4pp
—
—
Operating profit
544
480
13%
—
—
Operating margin
10.7%
9.4%
1.3pp
—
—
1 Excluding Yeezy sales in the prior-year period.
North America at a glance € in millions
2025
2024
Change
Change
(currency-
neutral)
Brand adidas
Change
(currency-
neutral)1
Gross margin in North America increased 2.3 percentage points to 45.4% (2024: 43.1%), mainly reflecting
lower sourcing costs and reduced discounting. In accordance with the company’s operating model, the
impact of higher US tariffs is mainly recognized centrally rather than at the market level. Operating
expenses were flat at € 1,792 million versus € 1,788 million in 2024, reflecting an increase in marketing
expenditure, while operating overhead costs declined. Operating expenses as a percentage of sales
increased 0.4 percentage points to 35.2% (2024: 34.9%). Operating profit in North America increased 13%
to € 544 million from € 480 million in 2024, while the operating margin increased 1.3 percentage points to
10.7% from 9.4% in 2024.
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Greater China
Sales for the adidas brand in Greater China increased 13% on a currency-neutral basis. This development
reflects double-digit growth in both Lifestyle and Performance. In Lifestyle, both Originals and Sportswear
grew at a double-digit rate. Increases in Performance were driven by double-digit growth in Running and
Football, alongside gains in a broad range of other categories. Including Yeezy sales in the prior year,
currency-neutral revenues grew by 9%. In euro terms, sales increased 5% to € 3,623 million as currency
translation effects weighed on reported revenue growth (2024: € 3,459 million).
Net sales in Greater China
+13%
Brand adidas c.n.
€ 3,623 million
Net sales
3,623
3,459
5%
9%
13%
Gross profit
1,904
1,717
11%
—
—
Gross margin
52.6%
49.6%
2.9pp
—
—
Operating expenses
1,103
1,012
9%
—
—
Operating expenses in % of net sales
30.5%
29.3%
1.2pp
—
—
Operating profit
802
714
12%
—
—
Operating margin
22.1%
20.6%
1.5pp
—
—
1 Excluding Yeezy sales in the prior-year period.
Greater China at a glance € in millions
2025
2024
Change
Change
(currency-
neutral)
Brand adidas
Change
(currency-
neutral)1
Gross margin in Greater China improved by 2.9 percentage points to 52.6% from 49.6% in 2024, reflecting
reduced discounting, lower sourcing costs, and a better business mix. Operating expenses grew 9% to
€ 1,103 million (2024: € 1,012 million) due to increases in both marketing expenditure and operating
overhead costs. Operating expenses as a percentage of sales increased 1.2 percentage points to 30.5%
compared to 29.3% in the prior year. Operating profit in Greater China increased 12% to € 802 million
versus € 714 million in 2024, while the operating margin improved 1.5 percentage points to 22.1% from
20.6% in 2024.
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Emerging Markets
Sales for the adidas brand in Emerging Markets improved 17%. This development reflected broad-based
double-digit growth in both Lifestyle and Performance. In Lifestyle, growth was driven by double-digit
increases in Originals and high-single-digit growth in Sportswear. Growth in Performance was led by double-
digit growth in Football, Running, and Outdoor, alongside increases in several other categories. Including
Yeezy sales in the prior year, currency-neutral revenues grew by 15%. In euro terms, sales were up 6% to
€ 3,510 million as currency translation effects weighed on reported revenue growth (2024:
€ 3,310 million).
Net sales in Emerging Markets
+17%
Brand adidas c.n.
€ 3,510 million
Net sales
3,510
3,310
6%
15%
17%
Gross profit
1,784
1,698
5%
—
—
Gross margin
50.8%
51.3%
(0.4pp)
—
—
Operating expenses
1,083
959
13%
—
—
Operating expenses in % of net sales
30.9%
29.0%
1.9pp
—
—
Operating profit
701
738
(5%)
—
—
Operating margin
20.0%
22.3%
(2.3pp)
—
—
1 Excluding Yeezy sales in the prior-year period.
Emerging Markets at a glance € in millions
2025
2024
Change
Change
(currency-
neutral)
Brand adidas
Change
(currency-
neutral)1
Gross margin in Emerging Markets decreased by 0.4 percentage points to 50.8% (2024: 51.3%) as the
positive effects from lower sourcing costs and a better business mix were more than offset by unfavorable
currency effects. Operating expenses were up 13% to € 1,083 million versus € 959 million in 2024,
reflecting increases in both marketing expenditure and operating overhead costs. Operating expenses as a
percentage of sales were up 1.9 percentage points to 30.9% (2024: 29.0%). Operating profit in Emerging
Markets decreased 5.0% to € 701 million from € 738 million in 2024, while the operating margin was down
2.3 percentage points to 20.0% versus 22.3% in 2024.
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Latin America
Sales for the adidas brand in Latin America increased 22% on a currency-neutral basis, reflecting broad-
based double-digit growth in both Performance and Lifestyle. In Performance, growth was led by double-digit
increases in Running, Football, and Training. In Lifestyle, double-digit growth was driven by both Originals
and Sportswear. Including Yeezy sales in the prior year, currency-neutral revenues grew by 21%. In euro
terms, sales in Latin America improved 6% to € 2,926 million as currency translation effects weighed on
reported revenue growth (2024: € 2,772 million).
Net sales in Latin America
+22%
Brand adidas c.n.
€ 2,926 million
Net sales
2,926
2,772
6%
21%
22%
Gross profit
1,391
1,329
5%
—
—
Gross margin
47.5%
47.9%
(0.4pp)
—
—
Operating expenses
786
717
10%
—
—
Operating expenses in % of net sales
26.9%
25.9%
1.0pp
—
—
Operating profit
609
614
(1%)
—
—
Operating margin
20.8%
22.2%
(1.4pp)
—
—
1 Excluding Yeezy sales in the prior-year period.
Latin America at a glance € in millions
2025
2024
Change
Change
(currency-
neutral)
Brand adidas
Change
(currency-
neutral)1
Gross margin in Latin America decreased 0.4 percentage points to 47.5% (2024: 47.9%) as the positive
effects from lower sourcing costs and better business mix were more than offset by unfavorable currency
movements. Operating expenses were up 10% to € 786 million from € 717 million in 2024. This
development reflects increases in both marketing expenditure and operating overhead costs. Operating
expenses as a percentage of sales increased 1.0 percentage points to 26.9% (2024: 25.9%). Operating
profit in Latin America decreased 1% to € 609 million versus € 614 million in 2024. The operating margin
decreased 1.4 percentage points to 20.8% from 22.2% in 2024.
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Japan/South Korea
Sales for the adidas brand in Japan/South Korea increased 14% on a currency-neutral basis. The increase
was driven by double-digit growth in Lifestyle, reflecting double-digit increases in Originals alongside growth
in Sportswear. Performance grew at a high-single-digit rate, led by double-digit growth in Running and
Football, alongside growth in several other categories. Including Yeezy sales in the prior year, currency-
neutral revenues grew by 11%. In euro terms, sales improved 5% to € 1,406 million as currency translation
effects weighed on reported revenue growth (2024: € 1,339 million).
Net sales in Japan/South Korea
+14%
Brand adidas c.n.
€ 1,406 million
Net sales
1,406
1,339
5%
11%
14%
Gross profit
740
711
4%
—
—
Gross margin
52.6%
53.1%
(0.5pp)
—
—
Operating expenses
466
428
9%
—
—
Operating expenses in % of net sales
33.2%
32.0%
1.2pp
—
—
Operating profit
305
295
3%
—
—
Operating margin
21.7%
22.0%
(0.3pp)
—
—
1 Excluding Yeezy sales in the prior-year period.
Japan/South Korea at a glance € in millions
2025
2024
Change
Change
(currency-
neutral)
Brand adidas
Change
(currency-
neutral)1
Gross margin in Japan/South Korea decreased by 0.5 percentage points to 52.6% from 53.1% in 2024, as
the positive effects from a better business mix and lower sourcing costs were more than offset by
unfavorable currency movements. Operating expenses were up 9% to € 466 million (2024: € 428 million),
driven by increases in both marketing expenditure and operating overhead costs. Operating expenses as a
percentage of sales increased 1.2 percentage points to 33.2% (2024: 32.0%). Operating profit in Japan/
South Korea increased 3% to € 305 million versus € 295 million in 2024. The operating margin decreased
0.3 percentage points to 21.7% from 22.0% in 2024.
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Outlook
In 2026, we expect macroeconomic challenges as well as geopolitical tensions to persist and
uncertainty to remain elevated. At the same time, the strong structural growth of the global sporting
goods industry continues to be very supportive for our business. By being a global brand with a local
mindset and empowering our markets, as well as leveraging our strong product pipeline, we expect to
gain further market share. As a result, we expect to increase adidas’ currency-neutral sales at a high-
single-digit rate in 2026. With a focus on delivering high-quality growth and further investments in our
business, we anticipate operating profit to increase to around € 2.3 billion in 2026.
Forward-looking statements
This Management Report contains forward-looking statements that reflect Management’s current view with
respect to the future development of our company. The outlook is based on estimates that we have made
on the basis of all the information available to us at the time of completion of this Annual Report. In
addition, such forward-looking statements are subject to uncertainties which are beyond the control of the
company. In case the underlying assumptions turn out to be incorrect or described risks or opportunities
materialize, actual results and developments may materially deviate (negatively or positively) from those
expressed by such statements. adidas does not assume any obligation to update any forward-looking
statements made in this Management Report beyond statutory disclosure obligations.
►SEE RISK AND OPPORTUNITY REPORT
Global economic growth to moderate in 2026 amid elevated uncertainty15
Global gross domestic product (GDP) growth is projected to soften to 2.6% in 2026. The outlook remains
subject to considerable uncertainty and is impacted by the fading impact of front-loaded trade activity,
evolving geopolitical tensions, and the lingering effects of higher tariffs across major economies. While
inflation continues to moderate globally, it remains persistent, leading central banks to maintain a cautious
stance on monetary easing. In this environment of elevated economic uncertainty, consumer confidence is
expected to remain subdued across many markets, including North America, Europe, and Greater China, as
households continue to navigate cost pressures. Advanced economies are expected to grow at a pace of
1.6%, while developing economies are anticipated to expand by 4.0%. Significant downside risks persist,
including intensified trade tensions, further geopolitical escalations, supply chain disruptions, commodity
price volatility, reacceleration of inflation, and climate-related events.
Sporting goods industry expected to maintain underlying momentum
The global sporting goods industry is expected to maintain its underlying momentum in 2026 and beyond.
This development is driven by increasing sports participation rates and growing health and fitness
awareness, ongoing popularity of athletic as well as sport-inspired products for everyday use, and growing
demand for comfort propositions. Global excitement around the Winter Olympics and Paralympics as well as
the FIFA World Cup 2026 is expected to boost category visibility, consumer engagement, and retail activity.
At the same time, elevated uncertainty and macroeconomic challenges continue to impact the sporting
goods industry, too. While inflation is moderating, real disposable incomes remain under pressure and
consumer sentiment subdued in major markets. Geopolitical tensions, tariff-related developments, and
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15 Source: World Bank Global Economic Prospects.
volatile commodity prices may pose additional headwinds. In this environment, companies' ability to adapt
fast and locally to changing consumer preferences and economic conditions will continue to be crucial.
Net sales
€ 24,811 million
to increase at a
high-single-digit rate1
Operating profit
€ 2,056 million
to increase to a level of
around € 2.3 billion
Average operating working capital
in % of sales
23.0%
between 22% and 23%
Capital expenditure
€ 477 milion
around € 500 million
1 Currency-neutral.
2026 Outlook
2025
2026 Outlook
Currency-neutral sales to increase at a high-single-digit rate in 2026
We expect the company’s currency-neutral sales to increase at a high-single-digit rate in 2026. Further
market share increases will be driven by our market empowerment with a clear focus on local consumer
preferences combined with a strong product pipeline across product divisions and categories as well as
much improved retailer relationships. In addition, impactful marketing initiatives will also add to our brand
momentum and fuel sales growth.
Strong growth expected in all market segments
Our market shares are expected to increase in all market segments in 2026. We expect currency-neutral
sales to grow at a low-double-digit rate in North America, Greater China, Emerging Markets, Latin America,
and Japan/South Korea. Currency-neutral revenues in Europe are projected to increase at a mid-single-digit
rate.
Operating profit to increase to around € 2.3 billion
We will continue to invest into marketing and sales activities to drive brand momentum and high-quality
growth. These investments include global as well as local sports, activations around major events, support
for product introductions, and initiatives to further strengthen retailer relationships. Despite anticipated
headwinds from higher US tariffs and unfavorable currency developments, we expect profitability to further
improve in 2026 and project operating profit to reach a level of around € 2.3 billion.
Average operating working capital of between 22% and 23%
In terms of working capital, our focus will remain on enabling top-line growth through good product
availability and healthy inventory composition across our markets. In addition, we continue to support our
retail and manufacturing partners. Consequently, we forecast average operating working capital as a
percentage of sales to reach a level of between 22% and 23% in 2026.
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Capital expenditure of around € 500 million
In addition to leveraging the company’s existing state-of-the-art infrastructure, we will continue to invest into
our business. As a result, capital expenditure is expected to reach a level of around € 500 million in 2026.
Management proposes dividend payment of € 2.80 per share
The adidas AG Executive and Supervisory Boards will recommend paying a dividend of € 2.80 per dividend-
entitled share to shareholders at the Annual General Meeting on May 7, 2026. This represents an increase
of 40% compared to the prior year (2025: € 2.00). The proposal reflects the company’s better-than-
expected performance in 2025, its strong financial profile, and Management’s confident outlook for the
future. The dividend payout of € 500 million (2025: € 357 million) reflects a payout ratio of 36% of net
income from continuing operations, within the target range as defined in our Financial Policy. Total cash
returns to shareholders are expected to amount to up to € 1.5 billion in 2026 as the company, in addition
to the dividend payout of € 500 million, plans to buy back shares worth up to € 1 billion this year. adidas
intends to cancel the repurchased shares.
►SEE OUR SHARE
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Risk and Opportunity Report
In order to remain competitive and ensure sustainable success, adidas consciously takes risks and
continuously explores and develops opportunities. Our risk and opportunity management principles and
system provide the framework for our company to conduct business in a well-controlled environment.16
Risk and opportunity management principles
The key objective of the risk and opportunity management is to support business success and protect the
company as a going concern through an opportunity-focused but risk-aware decision-making framework. Our
Enterprise Risk Management Policy outlines the principles, processes, tools, risk areas, key
responsibilities, reporting requirements, and communication timelines within our company. Risk and
opportunity management is a company-wide activity that utilizes key insights from the members of the
Executive Board as well as from global and local business units and functions. We define risk as the
potential occurrence of an external or internal event (or series of events) that may negatively impact our
ability to achieve the company’s business objectives or financial goals. Opportunity is defined as the
potential occurrence of an external or internal event (or series of events) that can positively impact the
company’s ability to achieve its business objectives or financial goals.
Risk and opportunity management system
The Executive Board has overall responsibility for establishing a risk and opportunity management system
that ensures comprehensive and consistent management of all relevant risks and opportunities. The
Enterprise Risk Management department governs, operates, and develops the company’s risk and
opportunity management system and is the owner of the centrally managed risk and opportunity
management process on behalf of the Executive Board. The Supervisory Board is responsible for monitoring
the effectiveness of the risk management system. These duties are undertaken by the Supervisory Board’s
Audit Committee. Working independently of all other functions of the organization, the Internal Audit
department provides objective assurance to the Executive Board and the Audit Committee regarding the
adequacy and effectiveness of the company’s risk and opportunity management system on a regular basis.
In addition, the Internal Audit department includes an assessment of the effectiveness of risk management
processes and compliance with the company’s Enterprise Risk Management Policy as part of its regular
auditing activities with selected adidas subsidiaries or functions each year.
Our risk and opportunity management system is based on frameworks for enterprise risk management and
internal controls developed and published by the Committee of Sponsoring Organizations of the Treadway
Commission (COSO). Additionally, we have adapted our risk and opportunity management system to more
appropriately reflect the structure as well as the culture of the company. This system focuses on the
identification, evaluation, handling, systematic reporting, and monitoring of risks and opportunities.
Furthermore, we use a quantitative concept for risk capacity and risk appetite. Risk capacity is a liquidity-
based measure and represents the maximum level of risk adidas AG can take before being threatened with
insolvency. Risk appetite refers to the maximum level of risk the company is willing to take and is linked to
the company's liquidity targets.
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16 The below sections contain disclosures pursuant to ESRS 2, paragraph 48f.
Risk and opportunity management system
Our risk and opportunity management process comprises the following steps:
─Risk and opportunity identification: adidas continuously monitors the macroeconomic environment and
developments in the sporting goods industry as well as internal processes to identify risks and
opportunities as early as possible. On a semiannual basis, the Enterprise Risk Management department
conducts a survey among senior management and selected middle management to ensure an effective
bottom-up identification of risks and opportunities. Enterprise Risk Management has also defined
categories for risks and opportunities to assist in systematic identification. In addition, adidas uses
various instruments in the risk and opportunity identification process, such as primary qualitative and
quantitative research, including trend scouting and consumer surveys, as well as feedback from our
business partners. These efforts are supported by global market research and competitor analysis.
Through this process, we seek to identify the markets, categories, consumer target groups, and product
styles that show the most potential for future growth at a local and global level. Equally, our analysis
focuses on those areas that are at risk of saturation or exposed to increased competition or changing
consumer tastes. Furthermore, we consider topics related to environmental, social, and governance
aspects in our overall identification process as well as in the following process steps. Our risk and
opportunity identification process is not only limited to external risk factors or opportunities but also
includes an internal perspective that considers company culture, processes, projects, human resources,
and compliance aspects.
─Risk and opportunity evaluation: We assess identified risks and opportunities individually according to a
systematic evaluation methodology, which allows adequate prioritization as well as allocation of
resources. Risk and opportunity evaluation is part of the responsibility of the Enterprise Risk
Management department supported by subject matter experts as well as internal and external data. The
Enterprise Risk Management department also conducts assessments with the Executive Board members
and senior leaders to validate the evaluation of most relevant risks and opportunities.
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According to our methodology, risks and opportunities are evaluated by looking at two dimensions: the
potential impact and the likelihood that this impact materializes. Based on this evaluation, we classify risks
and opportunities into three categories: minor, moderate, and major.
The potential impact is evaluated using five categories: marginal, low, medium, high, and significant. These
categories represent financial or equivalent non-financial measurements. The financial measurements are
based on the potential effect on the company’s net income and cash flow. Non-financial measurements
used are the degree to which the company’s reputation, brand image, and employer value proposition are
affected. Moreover, the degree of damage to people’s health and safety, caused by non-compliance with
legal regulations or gross negligence can be considered. Likelihood represents the possibility that a given
risk or opportunity may materialize with the specific impact. The likelihood of individual risks and
opportunities is evaluated on a percentage scale divided into five categories.
Risk and opportunity evaluation categories
1 Based on net income and cash flow.
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When evaluating risks and opportunities, we also consider the speed of materialization (velocity). In this
respect, we differentiate in which financial year risks and opportunities could occur. We consider both gross
and net risk in our risk assessments. While the gross risk reflects the inherent risk before any mitigating
action, the net risk reflects the residual risk after all mitigating action. On the one hand, this approach
allows for a good understanding of the impact of mitigating action taken; on the other hand, it provides the
basis for scenario analysis. Our assessment of risks presented in this report only reflects the net risk
perspective. We measure the actual financial impact of selected risks and opportunities that materialized
against the original assessment on a yearly basis (‘back-testing’). In this way, we ensure continuous
monitoring of the accuracy of risk and opportunity evaluations across the company, which enables us to
continuously improve evaluation methodology based on our findings.
In assessing the potential effect from opportunities, each opportunity is appraised with respect to viability,
commerciality, and potential risks. This approach is not only applied to longer-term strategic prospects but
also to shorter-term tactical and opportunistic initiatives at the corporate level as well as at the market and
brand level. In contrast to the risk evaluation, only the net perspective exists for assessing opportunities.
We aggregate risks and opportunities using a stochastic simulation (Monte Carlo simulation) to determine
the company’s risk and opportunity portfolio (i.e., the company’s aggregated risk position), considering
interdependencies of individual risks and opportunities. To identify a potential threat to the company as a
going concern, we compare the 2026 risk and opportunity portfolio to the company’s defined risk capacity
and determine the likelihood that the aggregated risk exceeds the risk capacity; to identify a potential
threat to the company’s rating, we compare the 2026 risk and opportunity portfolio to the defined risk
appetite and determine the likelihood that the aggregated risk exceeds the risk appetite.
─Risk and opportunity handling: Risks and opportunities are treated in accordance with the company’s risk
and opportunity management principles as described in the Enterprise Risk Management Policy. Risk
Owners are in charge of developing and implementing appropriate risk-mitigating action within their area
of responsibility. In addition, the Risk Owners need to determine a general risk-handling strategy for the
identified risks, which is either risk avoidance, risk reduction with the objective to lower impact or
likelihood, risk transfer to a third party or risk acceptance. The decision on the implementation of the
respective risk-handling strategy also takes into account the costs in relation to the benefit of any
planned mitigating action if applicable. The Enterprise Risk Management department works closely with
the Risk Owners to monitor the continuous progress of planned mitigating action and assess the viability
of already implemented mitigating action. Depending on the risk class determined by the risk and
opportunity evaluation, the authority to make decisions to accept risks resides with the Executive Board,
leaders reporting directly to an Executive Board member and the operational management on the next
hierarchical level. The decision to accept major risks without taking additional mitigating action can only
be made by the entire Executive Board. In its decision-making process, the Executive Board takes into
account the risk profile, i.e., the relationship between risk and opportunity portfolio (i.e., the company’s
aggregated risk position) and risk appetite, as well as risk capacity. To support the Executive Board, the
Enterprise Risk Management department defined clear thresholds for the likelihood that the company’s
aggregated risk exceeds the defined risk appetite and risk capacity. The company’s risk appetite must
not be exceeded with a likelihood of at least 95%; the company’s risk capacity must not be exceeded
with a likelihood of at least 99%.
─Risk and opportunity monitoring and reporting: Our risk and opportunity management system aims to
increase the transparency of risks and opportunities. As both risks and opportunities are subject to
constant change, Risk Owners not only monitor developments but also the adequacy and effectiveness
of the current risk-handling strategy on an ongoing basis.
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Regular risk reporting takes place half-yearly and consists of a five-step reporting stream:
─Enterprise Risk Management identifies risks and opportunities (with a potential effect on net income and
cash flow higher than € 1 million) by conducting a survey among senior management and selected
middle management as well as utilizing available information concerning the internal and external
environment of the company. In collaboration with subject matter experts, Enterprise Risk Management
evaluates, consolidates, and aggregates the identified risks and opportunities (‘bottom-up assessment’).
─Enterprise Risk Management discusses the assessment of most relevant risks and opportunities with
the members of the Executive Board and leaders directly reporting to them. The Executive Board
members and senior leaders validate the assessment of risks and opportunities in their respective area
of responsibility (‘top-down assessment’).
─Enterprise Risk Management provides a consolidated report to the Executive Board summarizing the
results of both bottom-up and top-down assessment as well as the risk and opportunity profile to
highlight a potential threat to the company’s rating and going concern. The Executive Board reviews the
report, jointly agrees on a company assessment of risks and opportunities and decides if Risk Owners
are required to take further action.
─Based on the Executive Board’s decision, Enterprise Risk Management creates the final risk and
opportunity report that is also shared with the ‘Leadership Group.’
─The Executive Board presents in collaboration with Enterprise Risk Management the final risk and
opportunity assessment results to the Audit Committee of the Supervisory Board.
Material changes in previously reported risks and opportunities or newly identified substantial risks and
opportunities are also reported outside the regular half-yearly reporting stream on an ad hoc basis to the
Executive Board. To further improve the risk culture at adidas, we also offer a risk management training to
all our employees through our company intranet.
Compliance management system (adidas Fair Play)
We consider compliance with the law as well as with external and internal regulations to be imperative. The
Executive Board sets the tone from the top, and every employee is required to act ethically and in
compliance with the law as well as with internal and other external regulations while executing the
company’s business. We believe adidas Fair Play will prevent a majority of potential compliance issues. For
that reason, we have specific measures to detect and respond to any concerns. We realize, however, that
no compliance system can eliminate all violations.
The adidas Chief Compliance Officer (CCO) oversees the company’s Compliance Management System
(CMS). We see compliance as all-encompassing, spanning all business functions throughout the entire
value chain. Our central Compliance team works closely with Regional Compliance Managers and Local
Compliance Officers to conduct a systematic assessment of key compliance risks on a regular basis.
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The company’s CMS is based on the OECD Principles of Corporate Governance. It refers to the OECD
Guidelines for Multinational Enterprises and is designed to:
─support the achievement of qualitative and sustainable growth through good corporate governance,
─reduce and mitigate the risk of financial losses or damage caused by non-compliant conduct,
─protect and further enhance the value and reputation of the company and its brand through compliant
conduct, and
─support, together with the HR Employee Relations team, initiatives fighting harassment and
discrimination.
The adidas Fair Play Code of Conduct is accessible on our website, includes guidelines for employee
behavior in everyday work, and is applicable globally for all business areas.
►ADIDAS-GROUP.COM/CODE-OF-CONDUCT
The Fair Play Code of Conduct and our CMS are organized around three pillars: prevent, detect, and
respond.
─Prevent: The Compliance team regularly reviews and updates the CMS as necessary. In addition to the
Fair Play Code of Conduct mentioned above, we also support all initiatives to prevent and fight
harassment and discrimination in the workplace. Management also shares compliance-related
communication, and the Compliance team together with the Regional Compliance Managers and Local
Compliance Officers provides mandatory training to all employees globally during onboarding and in
regular, repeated cycles. The Compliance team and partners also provide targeted in-person compliance
training as appropriate with senior management and newly promoted or hired senior executives across
the globe in order to further enhance the compliance ‘tone from the top,’ as well as the ‘tone from the
middle.’ We closely monitor the completion rates for these training measures. We also focused on
further enhancing cooperation among the Compliance team and the Corporate Internal Audit, the Group
Policies, the Internal Controls, and the Enterprise Risk Management departments to align risk assurance.
─Detect: adidas has whistleblowing procedures in place to ensure timely detection of potential
infringements of statutory regulations or internal guidelines. Employees can report compliance concerns
internally to their supervisor, the CCO, Regional Compliance Managers or Local Compliance Officers, the
relevant HR Manager, the Employee Relations department, or, where applicable, the Works Council.
Employees can also report externally via the independent, confidential Fair Play hotline and website,
which also allow for anonymous complaints. The Fair Play hotline and website are available at all times
worldwide, including the services of interpreters, if required. They are promoted digitally and with posters
to reach all our locations around the world. We comply with the requirements under the German
Whistleblower Protection Act, based on Directive (EU) 2019/1937 of the European Parliament and of the
Council of 23 October 2019 on the protection of persons who report breaches of Union law.
─Respond: Appropriate and timely response to compliance violations is essential. The Compliance team
leads all investigations in cooperation with an established team of Regional Compliance Managers and a
global network of Local Compliance Officers, with further support from Employee Relations and HR. We
track, monitor, and report potential incidents of non-compliance worldwide. Most importantly, insights
gained from the investigation of past violations are used to continuously improve the CMS. Where
necessary, we react promptly to confirmed compliance violations, through appropriate and effective
sanctions ranging from warnings to termination of employment contracts. In 2025, the Compliance team
continued to strengthen its relationship with the Employee Relations organization, a key partner in many
compliance matters, especially those related to harassment and discrimination.
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The company’s CCO regularly reports to the Executive Board on the further development of the CMS and on
major compliance cases. In addition, the CCO reports to the Audit Committee on a regular basis. In 2025,
the CCO attended four meetings of the Audit Committee of the Supervisory Board to report on the further
development of the compliance program, major compliance cases, and other relevant compliance topics.
Description of the main features of the internal control and risk management system process
pursuant to § 315 section 4 German Commercial Code (Handelsgesetzbuch – HGB)
The accounting-related internal control and risk management system of the company represents a process
embedded within the company-wide corporate governance system. It aims to provide reasonable assurance
regarding the reliability of the company’s external financial reporting by ensuring company-wide compliance
with statutory accounting regulations, in particular the IFRS (International Financial Reporting Standards)
Accounting Standards and internal consolidated financial reporting policies (Finance Manual). We regard the
internal control and risk management system as a process based on the principle of segregation of duties,
encompassing various sub-processes in the areas of Accounting, Controlling, Taxes, Treasury, Planning,
Reporting, and Legal, focusing on the identification, assessment, mitigation, monitoring, and reporting of
financial reporting risks. Clearly defined responsibilities are assigned to each distinct sub-process. The
internal control and risk management system serves to identify, assess, limit, and control risks identified in
the consolidated financial reporting process that might result in the consolidated financial statements not
being compliant with internal and external regulations.
Internal Control over Financial Reporting (ICoFR) aims to provide reasonable assurance regarding the
reliability of financial reporting and compliance with applicable laws and regulations. To monitor the
effectiveness of ICoFR, the Corporate Internal Audit department, which includes both the Internal Audit and
Global Internal Controls functions, regularly reviews accounting-related processes. Additionally, as part of
the year-end audit, the external auditor assesses the effectiveness of selected internal controls, including
IT controls. The Audit Committee of the Supervisory Board also monitors the effectiveness of ICoFR, with
the results reported at least once every year.
All adidas companies are required to comply with the consolidated financial reporting policies (Finance
Manual), which are available to all employees involved in the financial reporting process through the
company-wide intranet. We update the Finance Manual on a regular basis, dependent on regulatory changes
and internal developments. Changes to the Finance Manual are promptly communicated to all adidas
companies. Clear policies serve to limit employees’ scope of discretion with regard to recognition and
valuation of assets and liabilities, thus reducing the risk of inconsistent accounting practices within the
company. We aim to ensure compliance with the Finance Manual through continuous adherence to the four-
eyes principle in accounting-related processes. In addition, the local manager responsible for the
accounting-related process within the respective company and the respective local Managing Director
confirm adherence to the Finance Manual and to IFRS Accounting Standards in a signed representation
letter to the Accounting department semiannually.
The accounting for adidas companies is conducted either locally or by our Global Business Services.
Virtually all the IT Enterprise Resource Planning (ERP) systems used are based on a company-wide
standardized SAP system. Following approval by the Finance Director of the respective adidas company, the
local financial statements are transferred to a central consolidation system based on SAP Group Reporting.
At the corporate level, the regularity and reliability of the financial statements prepared by adidas
companies are reviewed by the Accounting and Controlling departments. These reviews include automated
validations in the system as well as the creation of reports and analyses to ensure data integrity and
adherence to the reporting logic. In addition, differences between current-year and prior-year financial data
as well as budget figures are analyzed on a market level. If necessary, adidas seeks the opinion of
independent experts to review business transactions that occur infrequently and on a non-routine basis.
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After ensuring data plausibility, the centrally coordinated and monitored consolidation process begins,
running automatically on SAP Group Reporting. Controls within the individual consolidation steps, such as
those relating to the consolidation of debt or of income and expenses, are conducted both manually and
system-based, using automatically created consolidation logs. Any inadequacies are remedied manually by
systematically processing the individual errors as well as differences and are reported back to the adidas
companies. After finalization of all consolidation steps, all items in the consolidated income statement and
in the consolidated statement of financial position are analyzed with respect to trends and variances.
Unless already otherwise clarified, the adidas companies are asked to explain any identified material
deviations.
All financial systems used are protected against malpractice by means of appropriate authorization
concepts, approval concepts, and access restrictions. Access authorizations are reviewed on a regular
basis and updated if required. The risk of data loss or outage of accounting-related IT systems is minimized
through central control and monitoring of virtually all IT systems, centralized management of change
processes, and regular data backups.
Furthermore, the adidas internal control and risk management system includes non-accounting-related
controls which serve to provide reasonable assurance regarding the effectiveness and efficiency of
operations, reliability of non-financial reporting, and compliance with applicable laws and regulations. The
internal control and risk management system regarding the non-accounting-related activities focuses also
on the identification, assessment, mitigation, monitoring, and reporting of relevant risks. It is as well
embedded within the company-wide corporate governance system and encompasses various sub-processes
in the areas of Brands, Sourcing, Supply Chain Management, Procurement, IT, Sales, or Human Resources.
All adidas companies are also required to comply with the non-accounting-related policies (‘Policy Manual’),
which are available to all employees involved in the various processes through the company-wide intranet
and are updated and communicated on a regular basis.
The effectiveness of the non-accounting-related controls is also regularly monitored by the Corporate
Internal Audit department and the Global and Market Internal Controls teams. The reporting of internal
control testing results to the Audit Committee of the Supervisory Board also includes the effectiveness of
non-accounting-related controls.
Nothing came to our attention that would cause us to doubt the adequacy and effectiveness of the entire
internal control and risk management system. However, due to the limitations of any internal control and
risk management system, absolute certainty about the appropriateness and effectiveness of these systems
cannot be guaranteed.17
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17 The statement in relation to German Corporate Governance Code A5 was not audited in terms of content as part of the audit of this Group Management
Report.
Illustration of risks
This report includes an explanation of financial and non-financial risks that we deem to be most relevant to
the achievement of the company’s objectives in 2026 and beyond. In this context, we present the risks in a
more aggregated form than in our internal reporting. In addition, risks that are currently rated as minor or
are not considered relevant or that are not yet known to us could have a negative impact on the
achievement of our business objectives or financial goals. Additional information on risks related to
environmental, social, and governance aspects is available in our Sustainability Statement. According to
our risk assessment methodology, macroeconomic, sociopolitical, and regulatory risks; currency risks; risks
related to tax and customs regulations; and risks related to impairment of goodwill are classified as major.
The corporate risks overview table illustrates the assessment of all risks described below.
Macroeconomic, sociopolitical, and regulatory risks
Significant
30% – 50%
Currency risks
Significant
Not reported
separately in
2024
30% – 50%
Not reported
separately in
2024
Risks related to tax and customs regulations
High
↓ (Significant)
15% – 30%
Risks related to impairment of goodwill
High
15% – 30%
↓ (30% – 50%)
Risks related to media and stakeholder activities
Medium
30% – 50%
Risks related to consumer demand and product offering
Significant
↑ (High)
< 15%
↓ (15% – 30%)
IT and cybersecurity risks
Significant
↑ (High)
< 15%
↓ (15% – 30%)
Risks related to the competitive and retail environment
Significant
< 15%
Business partner risks
Significant
< 15%
Compliance risks
Significant
< 15%
Hazard risks
Significant
< 15%
Litigation risks
Significant
< 15%
Project risks
Significant
< 15%
Personnel risks
High
< 15%
↓ (15% – 30%)
Order and supply chain management risks
Low
Not reported in
2024
50% – 85%
Not reported in
2024
Corporate risks overview
Risk categories
Potential
impact
Change
(2024 rating)
Likelihood
Change
(2024 rating)
Macroeconomic, sociopolitical, and regulatory risks
Growth in the sporting goods industry is highly dependent on consumer spending and consumer confidence.
Economic downturns, inflation, financial market turbulence, and sociopolitical factors such as geopolitical
conflicts, changes of government, civil unrest, pandemics, nationalization, expropriation, or nationalism, in
particular in regions where adidas is strongly represented, could therefore negatively impact the company’s
business activities (up to a potential wind-down of subsidiaries) and top- and bottom-line performance. In
addition, substantial changes in the regulatory environment such as trade restrictions, economic and
political sanctions, regulations concerning product compliance, social aspects, human rights,
environmental, and climate protection regulations could lead to potential sales shortfalls or cost increases.
►SEE NOTE 28
To mitigate these macroeconomic, sociopolitical, and regulatory risks, adidas strives to balance sales
across key regions and also between developed and emerging markets. We continuously monitor the
macroeconomic, political, and regulatory landscape in all our key markets to anticipate potential problem
areas, so that we can quickly adjust our business activities accordingly upon any change in conditions.
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Potential adjustments may be a reallocation of manufacturing of our products to alternative countries, a
reallocation of investments to alternative, more attractive markets, changes in product prices, closure of
our own retail stores, more conservative product purchasing, tight working capital management, and an
increased focus on cost control.
By building on our leading position within the sporting goods industry and taking into account the interests
of our stakeholders, we actively engage in supporting policymakers and regulators in their efforts to
liberalize global trade and curtail trade barriers, and to proactively influence and adapt to significant
changes in the regulatory environment.
Currency risks
Currency risks are a direct result of multi-currency cash flows within the company, in particular the
mismatch of the currencies required for sourcing our products versus the denominations of our sales.
Furthermore, translation impacts from the conversion of non-euro-denominated results into the company’s
functional currency, the euro, might lead to a material negative impact on our company’s financial
performance.
To mitigate the risk related to fluctuations in currency exchange rates, we utilize a centralized currency risk
management system and hedge currency needs for projected sourcing requirements on a rolling basis up to
24 months in advance. In rare instances, hedges are contracted beyond the 24-month horizon.
►SEE TREASURY
Risks related to tax and customs regulations
Numerous laws and regulations regarding customs and taxes as well as changes in such laws and
regulations affect the company’s business practices worldwide. Non-compliance with regulations concerning
product imports (including calculation of customs values), intercompany transactions, or income taxes
could lead to substantial financial penalties and additional costs as well as negative media coverage and
therefore reputational damage, for example in case of understatements or underpayments of corporate
income taxes or customs duties. Changes in regulations regarding customs and taxes may also have a
substantial impact on the company’s sourcing costs or income taxes. Therefore, we also create provisions
in accordance with the relevant accounting regulations to account for potential disputes with customs or tax
authorities. Due to the current geopolitical situation, we assume in individual cases increasingly aggressive
positions taken by tax and customs authorities in audits, which could increase the potential impact of such
risks and the likelihood that they materialize. The ‘OECD/G20 Inclusive Framework on Base Erosion and
Profit Shifting’ agreed on a two-pillar solution to address the tax challenges arising from the digitalization of
the economy. As of fiscal year 2025, adidas is subject to global minimum taxation. The specific design and
application of this tax may change in the future and could lead to higher income taxes.
We seek to manage tax and customs risks in a balanced way that bears an appropriate relationship to the
operating structure, commercial and economic substance, and other business risks. To proactively manage
such risks, we constantly seek expert advice from specialized independent law and tax advisory firms in
areas such as process design, transaction advisory, compliance, and tax or customs audits. Processes are
in place requiring that attention is regularly directed to potential areas of tax or customs risk (e.g., a
quarterly tax risk questionnaire) and the corporate tax and customs teams are involved in critical business
transactions. Compliance with global tax and customs policies and controls is monitored by the Corporate
Tax and Customs teams, internal controls experts and the Internal Audit department. We closely monitor
changes in legislation to properly adopt regulatory requirements regarding customs and taxes; apply any
available and applicable guidance from tax authorities and organizations such as the OECD, the World
Customs Organization, and the World Trade Organization; and seek guidance from individual authorities, as
appropriate, which may include requesting tax rulings from a tax authority. In addition, our internal legal,
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customs, and tax teams advise our operational management teams to ensure appropriate and compliant
business practices. Our specialized staff receive adequate training for their role and non-tax, or non-
customs staff are made aware of potential tax and customs matters relevant to their roles. Furthermore, we
work closely with customs authorities and governments worldwide to make sure we adhere to customs and
trade regulations at import and export to ensure the availability and obtain the required clearance of
products to fulfill sales demand.
Risks related to impairment of goodwill
Our balance sheet carries book values in goodwill. Deterioration in the business performance, and
particularly in future business prospects, as well as significant exchange rate fluctuations could require
corrections of the book values by incurring impairment charges. In addition, increases in market interest
rates could trigger increases in discount rates used in our impairment test for goodwill and require
impairment charges. An impairment charge would be a purely accounting, non-cash effect impacting the
company’s operating result.
►SEE NOTE 11
Risks related to media and stakeholder activities
Adverse or inaccurate media coverage on our products or business practices (including topics related to
social, environmental, and governance) as well as negative social media discussion may significantly harm
adidas’ reputation and brand image, lead to public misperception of the company’s business performance,
and eventually result in a sales slowdown. Similarly, certain activities on the part of key stakeholders (e.g.,
non-governmental organizations, governmental institutions) could cause reputational damage, distract top
management, and disrupt business activities.
To mitigate these risks, we pursue proactive, open communication and engagement with key stakeholders
(e.g., consumers, media, brand partners, the financial community, non-governmental organizations,
governmental institutions) on a continuous basis. In addition, we have established clear crisis
communication processes to ensure a quick and effective response to adverse developments. We
constantly strengthen our social media capabilities and utilize various digital newsrooms around the globe
that enable continuous monitoring of social media content related to the company’s products and activities
and allow early management of potentially damaging social media discussion. On a case-by-case basis, we
seek external advice from experts in communication and stakeholder management.
Risks related to consumer demand and product offering
Our success largely depends on our ability to continuously create new, innovative, and more sustainable
products. Consumer demand changes can be sudden and unexpected, particularly when it comes to the
more fashion-related part of our business. Therefore, we face a risk of short-term revenue loss in cases
where we are unable to anticipate consumer demand or respond quickly to changes. In addition, creating
and offering products that do not resonate with consumers and our retail partners is a critical risk to the
success of our brands, especially considering our focus on key product franchises. This risk could be
exacerbated if our marketing activities and brand campaigns fail to generate consumer excitement. Even
more critical in the long term, however, are the risks of continuously overlooking new trends and failing to
continuously introduce and successfully commercialize new product innovation.
To mitigate these risks, identifying and responding to shifts in consumer demand as early as possible is a
key responsibility of our brand and sales organizations and, in particular, of the respective Risk Owners.
Therefore, we utilize extensive primary and secondary research tools as outlined in our risk and opportunity
identification process. By putting the consumer at the center of our decision-making, we intend to create
higher brand advocacy and attract new consumers. We continuously expand our consumer analytics efforts
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to read and quickly react to changes in demand or trend shifts. In addition, direct touchpoints with
consumers via our own digital channels, such as the adidas app, and direct communication with consumers
on social media platforms strengthen our understanding of consumer preferences and behavior and, as a
result, help us to reduce our vulnerability to changes in demand. Through continuous monitoring of sell-
through data and disciplined product life-cycle management, in particular for our major product franchises,
we are able to better detect demand patterns and prevent excess supply. By leveraging our promotion
partnerships and by carefully orchestrating launch events across markets and channels, we intend to
maintain brand desire and consumer demand at a constantly high level. Utilizing external insights and
capabilities in product creation helps us strengthen our product offering and drive consumer demand, brand
desire, market share, and profitability.
IT and cybersecurity risks
Theft, leakage, corruption, or unavailability of critical information (e.g., consumer data, employee data,
product data) and systems could lead to reputational damage, regulatory penalties, or the inability to
perform key business processes. Key business processes, including product marketing, order
management, warehouse management, invoice processing, customer support, and financial reporting, are
all dependent on IT systems. Significant outages, application failures, or cybersecurity threats to our
infrastructure, or that of our business partners, could therefore result in reputational damage, regulatory
penalties, or cause considerable business disruption or impact to business-critical data.
To mitigate these risks, our Information Security organization proactively drives system preventive
maintenance, service continuity planning, adherence to Information Security policies (aligned with the NIST
SP 800-53 Rev. 5 framework), and continuous execution of a comprehensive information security program
aligned with a zero-trust and cloud strategy. Information security architecture design, application security,
governance, data security, employee awareness programs, and a 24x7 incident response help us to
adequately protect the company. We have also secured limited insurance coverage for damage resulting
from cybersecurity incidents.
Risks related to the competitive and retail environment
Changes in the competitive landscape and the retail environment could impact the company’s success.
Strategic alliances among competitors or retailers, the increase in retailers’ own private-label businesses
and intense competition for consumers, production capacity, and promotion partnerships between well-
established industry peers and new market entrants pose a substantial risk to adidas. This could lead to
harmful competitive behavior, such as sustained periods of heavy discounting in the marketplace or intense
bidding for promotion partnerships. Failure to recognize and respond to consolidation in the retail industry
could lead to increased dependency on particular retail partners, reduced bargaining power, and,
consequently, considerable margin erosion. Sustained pricing pressure in key markets could threaten the
company’s financial performance and the competitiveness of our brands. Aggressive competitive practices
could also drive increases in marketing costs and market share losses, thus hurting the company’s
profitability and market position. The inability to adjust our distribution strategy in a timely manner to a
changing retail industry, which is experiencing continuous substitution of physical retail stores by digital
commerce platforms as well as increasing connectivity between physical and digital retail, could result in
sales and profit shortfalls. A decline in the attractiveness of particular shopping locations, such as
shopping malls, could lead to sales shortfalls in our customers’ and our own stores, higher inventory in the
marketplace, increased clearance activity, and margin pressure.
To mitigate these risks, we continuously monitor and analyze information on our competitors and markets
in order to be able to anticipate unfavorable changes in the competitive environment rather than merely
reacting to such changes. This enables us to proactively adjust our marketing and sales activities (e.g.,
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product launches or selective pricing adjustments) when needed. We also continuously and closely monitor
numerous indicators (e.g., order placement, sell-through rates at the point of sale, average selling prices,
discounts, store traffic) that help us identify changes in the retail environment and quickly take appropriate
action such as closing or remodeling our own stores. We constantly adjust our segmentation strategies to
ensure that the right product is sold at the right point of sale at an appropriate price. Continuous
investment in research and development ensures that we remain innovative and distinct from competitors.
We also pursue a strategy of entering into long-term agreements with key promotion partners. In addition,
our product and communication initiatives are designed to increase brand desire, drive market share
growth, and strengthen our brand’s market position.
Business partner risks
adidas interacts and enters into partnerships with various third parties, such as athletes, creative partners,
innovation partners, retail partners, or suppliers of goods or services. As a result, the company is exposed
to a multitude of business partner risks.
We work with strategic partners in various areas of our business (e.g., product creation, manufacturing,
research, and development) or distributors in a few selected markets whose approach might differ from our
own business practices and standards, which could also negatively impact the company’s business
performance and reputation. Similarly, failure to maintain strong relationships with our partners could
negatively impact the company’s sales and profitability. Risks may also arise from a dependency on
particular partners. For example, the overdependency on a supplier or customer increases the company’s
vulnerability to delivery and sales shortfalls, respectively, and could lead to significant margin pressure.
Business partner default (including insolvency) or other disruptive events such as strikes may negatively
affect the company’s business activities and result in additional costs and liabilities as well as lower sales
for the company. Unethical business practices or improper behavior on the part of business partners could
have a negative spillover effect on the company’s reputation, lead to higher costs or liabilities or even
disrupt business activities.
To mitigate business partner risks, adidas has implemented various measures. For example, we generally
include clauses in contractual agreements with partners that allow us to suspend or even terminate our
partnership in case of improper or unethical conduct. In addition, we work with a broad portfolio of
promotion partners to reduce the dependency on the success and popularity of a few individual partners.
We utilize a broad distribution strategy, which includes our direct-to-consumer business to reduce the risk of
overreliance on key customers. Specifically, no single customer accounted for more than 5% of the
company’s sales in 2025. To reduce risk in the supply chain, we work with suppliers who demonstrate
reliability, financial stability, quality, and innovation. Furthermore, in order to minimize any potential
negative consequences such as a violation of our Workplace Standards by our suppliers, we enforce strict
control and inspection procedures at our suppliers and also demand adherence to social and environmental
standards throughout our supply chain. In addition, we have selectively bought insurance coverage for the
risk of business interruptions caused by physical damage to suppliers’ premises. To reduce supplier
dependency, the company follows a strategy of diversification. In this context, adidas works with a broad
network of suppliers in different countries and, for the vast majority of its products, does not have a single-
sourcing model.
Compliance risks
As a globally operating company, adidas is subject to various laws and regulations. Non-compliance with
such laws and regulations could lead to penalties and fines and cause reputational damage. For example,
non-compliance with laws and regulations concerning data protection and privacy, such as the EU General
Data Protection Regulation (GDPR), may result in substantial fines. In addition, failure to comply with data
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protection and privacy regulations could cause reputational damage and result in a loss of consumer trust
in our brands. We also face the risk that members of top management and our employees breach rules and
standards that guide appropriate and responsible business behavior. This includes the risks of fraud,
financial misstatements or manipulation, anti-competitive business practices, bribery, corruption,
discrimination, and harassment in the workplace.
Our Compliance Management System (CMS) helps us to prevent, detect, and adequately respond to these
risks. Our Global Policy Manual provides a framework for basic work procedures and processes, and our
Fair Play Code of Conduct stipulates that every employee and our business partners shall act ethically in
compliance with the laws and regulations of the legal systems where they conduct company business. In
addition, our Regional Compliance Managers and Local Compliance Officers guide and advise our operating
managers regarding fraud and corruption topics. Furthermore, we utilize controls such as segregation of
duties in IT systems and data analytics technology to prevent or detect fraudulent activities. We are also
working with external partners and law firms to ensure we are informed about legal requirements across the
globe, and we take appropriate action to ensure compliance. To mitigate the risk of non-compliance with
laws and regulations concerning data protection and privacy, we train our employees and introduced global
privacy principles and standards. This framework applies to all adidas businesses worldwide and sets our
expectations of third-party business partners for managing personal information for or on behalf of adidas.
Our Global Privacy Officer, the Global Privacy department, and local privacy experts drive compliance with
laws and regulations and the company framework, which is updated regularly to reflect new requirements
and improvements.
Hazard risks
As climate change intensifies, the likelihood and intensity of natural disasters such as storms, floods,
wildfires, droughts, pandemics, or heat waves increases, and so does adidas’ potential risk. In addition,
our business activities could be impacted by other hazards such as port congestions, strikes, riots, armed
conflicts, or terrorist attacks. All of the above could damage our offices, stores, or distribution centers or
disrupt our operational processes (e.g., sourcing, logistics) leading to loss of sales, higher cost, a decrease
in profitability, and physical injury.
To manage and mitigate these risks, we continuously monitor potential threats and have implemented
business continuity plans including but not limited to fallback solutions for transportation, dynamic capacity
management of containers and carriers, and reallocation of production. We also maintain high safety
standards in all our locations and have secured insurance coverage for property damage and business
interruptions.
Litigation risks
adidas may be involved in legal disputes and proceedings in different jurisdictions. For example, despite a
rigid internal clearance process, legal steps may be taken against adidas due to the company’s use of
certain technologies or trademarks that are protected by a third party’s intellectual property rights. These
actions may result in, among others, the company having to stop using certain technologies or designs,
imposed royalty payment obligations, the withdrawal of products from certain markets, legal costs,
or reputational damage. In particular, in commercial disputes involving the company, third parties may also
claim financial damages, including lost profits, as a result of an alleged breach of contract by the company.
Our Legal team actively defends adidas’ intellectual property rights and regularly communicates with all
relevant internal business partners to ensure that our products, including our designs and other
innovations, are cleared and adequately protected prior to use. We may retain specialized external counsel
(and other advisors, if needed) in case legal action is taken against the company.
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Project risks
To effectively support further business growth and improve efficiency, adidas continuously invests in new
projects such as the creation, implementation, expansion, harmonization, or modernization of IT systems,
distribution centers, or office buildings. Ineffective project management could delay the execution of critical
projects and lead to higher expenditures. Inadequate project planning and controlling as well as executional
mistakes or ineffective change management could cause inefficiencies, delays, or business disruption,
resulting in higher costs and sales shortfalls. Inappropriate project governance, prioritization, and oversight
of the project portfolio may lead to suboptimal resource allocation and undesired project results.
We manage projects utilizing reviews by project teams as well as project steering committees to evaluate
the progress, quality, and costs of those projects on a regular basis. This approach allows early detection
of project risks and quick implementation of corrective action or timely cancellation of projects with a low
chance of success. To ensure true end-to-end management of key projects we have established a network
of program and project management departments across all main functions. We also work with external
partners for project management support in areas where we do not have the required expertise or
experience in-house.
Personnel risks
Achieving the company’s strategic and financial objectives is highly dependent on our employees and their
talents. In this respect, strong leadership and a performance-enhancing culture are critical to the
company’s success. Therefore, ineffective leadership as well as the failure to maintain a performance-
oriented culture that fosters inclusion and belonging and strong employee engagement among our
workforce could substantially impede our ability to achieve our goals. An ineffective, unbalanced, or
insufficient allocation of resources to business activities as well as improper planning and untimely
execution of reorganization and transformation initiatives may reduce employee engagement, cause
business disruption and inefficiencies, and may negatively affect business performance. In addition, global
competition for highly qualified personnel remains fierce. As a result, the loss of key personnel in strategic
positions and the inability to identify, recruit, and retain highly qualified and skilled talent who best meet
the specific needs of our company pose risks to our business performance.
We are taking various measures to ensure that we maintain a culture that fosters inclusion and belonging.
Through several specialized programs, including employee training, inclusion and belonging are embedded
in our organization. To ensure effective leadership across the company we offer a portfolio of leadership
development experiences designed for every level of management across all markets and functions. To
optimize staffing levels and resource allocation (i.e., having the right people with the right skill sets in the
right roles at the right time), we adjust resource allocation where required to reflect developments in
business performance, the economic environment, and our company’s strategic priorities. Organizational
transformations and reorganizations are supported by change activations with our leadership teams and
organizational design consultancy. We continuously invest in improving employer branding activities, and
our global recruiting organization constantly enhances our internal and external recruiting services and
capabilities. Our global succession management helps create internal talent pipelines for critical leadership
positions and therefore reduces succession risk.
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Risks related to order and supply chain management
The prices of raw materials used as well as the labor and manufacturing costs of our production partners
may be subject to fluctuations and could negatively affect our gross margin. The same applies to freight
costs that can be influenced, for example, by overall economic demand, fuel costs, or geopolitical events.
Furthermore, changes in consumer demand for certain products in certain markets can occur unexpectedly
and may lead to capacity bottlenecks or overcapacity at our production partners or in our distribution
centers.
To minimize these risks, adidas uses a wide range of different measures. In order to provide price stability
and predictability, we continuously monitor the development of relevant cost components (territory-specific
in some cases) and also negotiate fixed seasonal material prices with our production partners, which are
only renegotiated in exceptional cases. The use of new materials or advanced manufacturing techniques
can lead to cost efficiencies. We also enter into long-term contracts with our logistics partners and carry out
scenario planning for possible disruptions to important transport routes. Our comprehensive network of own
and third-party distribution centers enables us to utilize capacity effectively and supports the reliable and
timely delivery of our products to our consumers and wholesale customers.
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Illustration of opportunities
In this report, we illustrate financial and non-financial opportunities considered most relevant in 2026 and
beyond. In this context, we present the opportunities in a more aggregated form than in our internal
reporting. In addition, opportunities that are currently rated as minor or are not considered relevant or that
are not yet known to us could have a positive impact on the achievement of our business objectives or
financial goals. Additional information on opportunities related to environmental, social, and governance
aspects is available in our Sustainability Statement. According to our assessment methodology,
opportunities related to consumer demand and product offering; currency opportunities; and
macroeconomic, sociopolitical, and regulatory opportunities are considered major. The assessment is
illustrated in the corporate opportunities overview table.
Opportunities related to consumer demand and product offering
Significant
30% – 50%
Currency opportunities
Significant
Not reported
separately in
2024
30% – 50%
Not reported
separately in
2024
Macroeconomic, sociopolitical, and regulatory opportunities
Significant
15% – 30%
↓ (30% – 50%)
Personnel opportunities
Medium
15% – 30%
Corporate opportunities overview
Opportunity categories
Potential
impact
Change
(2024 rating)
Likelihood
Change
(2024 rating)
Opportunities related to consumer demand and product offering
Well-executed campaigns and marketing initiatives could increase brand desire and consumer appeal,
which may drive full-price sell-through and result in higher-than-expected sales and profit. In addition,
outstanding competitive performance of promotion partners such as individual athletes, club teams, or
national teams may further increase their popularity among consumers. As a result, adidas may generate
higher sales of signature footwear or licensed apparel and accessories. We believe that our continued
focus on product innovation and the ability to fully commercialize such innovation through an attractive
product offering that resonates with consumers and considers global as well as local trends could provide
further upside potential both in terms of sales and profit. In that respect, we see untapped commercial
potential particularly for our Lifestyle franchises as well as our Running business.
Currency opportunities
Favorable exchange rate developments can potentially have a positive impact on the company’s financial
results. Translation effects from the conversion of non-euro-denominated results into our company’s
functional currency, the euro, might also positively impact our company’s financial performance.
Macroeconomic, sociopolitical, and regulatory opportunities
Positive developments in the macroeconomic or sociopolitical environment could strengthen consumer
sentiment and purchasing power. Legislative and regulatory changes such as the elimination of trade
barriers due to free trade agreements can create cost savings or potentially open up new channels of
distribution and, as a result, positively impact profitability in the mid to long term.
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Personnel opportunities
Further strengthening a performance-oriented culture that fosters inclusion and belonging as well as
leadership accountability and clear values in the workplace could lead to increased diversity of thought,
increased creativity and innovation, and higher employee satisfaction and engagement. This may positively
impact the company’s financial performance. A workforce that includes diverse talent in all its forms and
reflects the diversity of our customers and consumers helps us better serve the communities we work in
and strengthens brand reputation among our consumers, which could potentially create a competitive
advantage and positively impact top- and bottom-line performance.
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Management Assessment of Performance, Risks and
Opportunities, and Outlook
Assessment of performance versus targets
We communicate our financial targets on an annual basis. We also provide updates throughout the year as
appropriate. 2025 was a successful year for adidas, and we performed better than initially expected,
despite the external environment being characterized by macroeconomic challenges and elevated
uncertainty. We were able to upgrade our guidance in October, reflecting continued brand momentum, the
better-than-expected business performance, as well as the company’s successful efforts to partly mitigate
the additional costs resulting from higher US tariffs. Ultimately, our 2025 financial results also exceeded
our latest guidance from October on both the top and bottom line.
►SEE INCOME STATEMENT
Currency-neutral
net sales development
12%
to increase at a
high-single-digit rate
to increase
by around 9%
10%
to increase at a
high-single-digit rate
Operating profit
€ 1,337 million
to increase to a level of between
€ 1.7 billion and € 1.8 billion
to increase to a level of
around € 2.0 billion
€ 2,056 million
to increase to a level of
around € 2.3 billion
Average operating
working capital
in % of net sales
19.7%
between 21% and 22%
between 21% and 22%
23.0%
between 22% and 23%
Capital expenditure
€ 540 million
around € 600 million
around € 600 million
€ 477 million
around € 500 million
1 As published on March 5, 2025.
2 As published on October 21, 2025.
Company targets versus actual key metrics
2024 Results
2025 Initial Targets1
2025 Updated Targets2
2025 Results
2026 Outlook
In 2025, revenues for the adidas brand increased 13% on a currency-neutral basis. Having completed the
sale of the remaining Yeezy inventory in 2024, the company’s results for 2025 do not include any Yeezy
revenues (2024: around € 650 million). Including Yeezy sales in the prior year, currency-neutral revenues
increased 10%. This was better than our initial expectation (increase at a high-single-digit rate) and also
ahead of our latest guidance provided in October (increase by around 9%). Our currency-neutral top-line
development reflects double-digit net sales growth for the adidas brand in all markets in 2025: Europe
(+10%), North America (+10%), and Greater China (+13%) grew revenues at a low-double-digit rate, while
Latin America (+22%), Emerging Markets (+17%), and Japan/South Korea (+14%) recorded even faster
growth.
Our operating profit reached € 2,056 million in 2025, ahead of our latest guidance of around € 2.0 billion
provided in October and significantly better than our initial expectation (to increase to a level of between
€ 1.7 billion and € 1.8 billion). Having completed the sale of the remaining Yeezy inventory in 2024, there
was no Yeezy contribution to the company’s operating profit in 2025 (2024: around € 200 million).
►SEE INCOME STATEMENT
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Average operating working capital as a percentage of sales increased 3.3 percentage points to 23.0%,
above the guidance of between 21% and 22%, driven by the company’s operating working capital
investments. Capital expenditure decreased 12% to € 477 million, below our guidance of a level of around
€ 600 million.
►SEE STATEMENT OF FINANCIAL POSITION AND STATEMENT OF CASH FLOWS
Beyond our financial performance, we also actively monitor other KPIs. These other KPIs include, among
others, the share of women in leadership positions as well as the carbon intensity per product. With 41%
female representation in leadership positions in 2025, we remain committed to achieving a level of 50% by
2033. CO2e emissions per product decreased by 4% in 2025, thereby achieving our ambition to reduce
carbon intensity per product by 9% between 2022 and 2025.
►SEE SUSTAINABILITY STATEMENT ►SEE ESRS S1 – OWN WORKFORCE ►SEE ESRS E1 – CLIMATE CHANGE
Assessment of overall risks and opportunities
Our Risk Management team aggregates all risks and opportunities identified through the half-yearly risk and
opportunity assessment process to determine the company’s risk and opportunity portfolio (i.e., the
company’s aggregated risk position). Results from this process are analyzed and reported to the Executive
Board accordingly. The Executive Board discusses and assesses risks and opportunities on a regular basis
and takes into account the relationship between the risk and opportunity portfolio (i.e., the company’s
aggregated risk position) and risk appetite as well as risk capacity in its decision-making. Compared to the
prior year, our assessment of certain risks and opportunities has changed in terms of likelihood of
occurrence and/or potential financial impact. Our risk and opportunity aggregation using a Monte Carlo
simulation determined that the company’s aggregated risk position does not exceed the company’s risk
capacity threshold with a likelihood of at least 99%. Therefore, we do not foresee any material jeopardy to
the viability of the company as a going concern.
►SEE RISK AND OPPORTUNITY REPORT
Assessment of financial outlook
In 2026, we expect macroeconomic challenges as well as geopolitical tensions to persist and uncertainty
to remain elevated. At the same time, the strong structural growth of the global sporting goods industry
continues to be very supportive for our business. By being a global brand with a local mindset and
empowering our markets, as well as leveraging our strong product pipeline, we expect to gain further
market share. As a result, we expect to increase adidas’ currency-neutral sales at a high-single-digit rate in
2026. With a focus on delivering high-quality growth and further investments in our business, we anticipate
operating profit to increase to around € 2.3 billion in 2026.
►SEE OUTLOOK
We believe our outlook for 2026 realistically describes the underlying development of the company.
However, the outlook for 2026 as outlined in this report is subject to change. Ongoing uncertainties
regarding macroeconomic challenges, the impact from geopolitical conflicts, the development of consumer
sentiment, and potential supply-chain disruptions represent risks to the achievement of our stated financial
goals and aspirations. No other material event between the end of 2025 and the publication of this report
has altered our view.
►SEE OUTLOOK
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4
GROUP MANAGEMENT REPORT
SUSTAINABILITY STATEMENT
ESRS 2 – General Disclosures
139
ESRS E1 – Climate Change
170
ESRS E2 – Pollution
189
ESRS E3 – Water and Marine Resources
198
ESRS E4 – Biodiversity and Ecosystems
205
ESRS E5 – Resource Use and Circular Economy
217
EU Taxonomy
232
ESRS S1 – Own Workforce
237
ESRS S2 – Workers in the Value Chain
265
ESRS S3 – Affected Communities
281
ESRS S4 – Consumers and End Users
287
ESRS G1 – Business Conduct
299
ANNUAL REPORT 2025
General Disclosures
For the year 2025, we report for the second time in accordance with the Corporate Sustainability Reporting
Directive (CSRD) and the European Sustainability Reporting Standards (ESRS), providing transparent and
comparable sustainability information that goes beyond mandatory requirements.
For this reporting period, the material topics on which we report remained the same compared to the
previous year. Our double materiality assessment remains valid, ensuring consistency and comparability
over time.
SBM-1 – Overview of adidas’ value chain stages
Upstream
Own operations
Downstream
Production by independent
manufacturing partners
Design, development,
marketing, distribution,
direct-to-consumer sales,
and support functions
Sales through wholesale
partners to consumers, and
use and disposal of
products
IRO-1 – Material impacts in our value chain
Environmental
Social
Governance
Material environmental
impacts occur mainly in the
upstream value chain. We
have established teams that
work in close collaboration
with our independent
manufacturing partners to
manage material impacts, e.g.,
GHG emissions, water,
biodiversity, waste, and use of
chemicals.
Material social impacts occur
at every stage of the value
chain and relate to the workers
of independent manufacturing
partners, our own employees,
and our consumers. We have
established teams and
functions that manage
material impacts, such as the
Social & Environmental Affairs
team to manage human rights
and working conditions in the
supply chain, the HR function
to manage topics related to
our own workforce, and the
Marketing and Sales functions
to manage consumer
interests.
Material governance-related
impacts, such as compliance
and corporate culture topics
are managed by the Legal
function, i.e., the Compliance
team together with HR.
ANNUAL REPORT 2025
Environment
ESRS E1
Climate Change
ESRS E2
Pollution
ESRS E3
Water and Marine Resources
ESRS E4
Biodiversity and Ecosystems
ESRS E5
Resource Use and Circular
Economy
Social
ESRS S1
Own Workforce
ESRS S2
Workers in the Value Chain
ESRS S3
Affected Communities
ESRS S4
Consumers and End-Users
Governance
ESRS G1
Business Conduct
ANNUAL REPORT 2025
ESRS 2 General Disclosures
BP-1
►Basis for preparation
BP-2
►Disclosures in relation to specific circumstances
GOV-1
►The role of administrative, management and supervisory bodies
GOV-2
►Oversight of sustainability IROs
GOV-3
►Sustainability matters addressed by management
GOV-4
►Statement on sustainability due diligence
GOV-5
►Sustainability reporting risk management
SBM-1
►Strategy, business model, and value chain
SBM-2
►Interests and views of stakeholders
SBM-3
►Double materiality assessment result
IRO-1
►Double materiality assessment process
IRO-2
►Disclosure requirements covered by the Sustainability Statement
E1 Climate Change
E1, GOV-3
►Sustainability-related incentive schemes
E1-1
►Transition plan for climate change mitigation
E1, SBM-3
►Material IROs and their interaction with strategy and business model
E1, IRO-1
►Description of the processes to identify and assess material climate-related IROs
E1-2
►Policies related to climate change mitigation and adaptation
E1-3
►Action and resources in relation to climate change policies
E1-4
►Targets related to climate change mitigation and adaptation
E1-5
►Energy consumption and mix
E1-6
►Gross Scope 1, 2, 3 and total GHG emissions
E1-7
►GHG removals and GHG mitigation projects financed through carbon credits
E1-8
►Internal carbon pricing
E2 Pollution
E2, SBM-3
►Material IROs and their interaction with strategy and business model
E2, IRO-1
►Description of the processes to identify and assess material pollution-related IROs
E2-1
►Policies related to pollution
E2-2
►Actions and resources related to pollution
E2-3
►Targets related to pollution
E3 Water and Marine Resources
E3, SBM-3
►Material IROs and their interaction with strategy and business model
E3, IRO-1
►Description of the processes to identify and assess material water and marine resource-related IROs
E3-1
►Policies related to water and marine resources
E3-2
►Actions and resources related to water and marine resources
E3-3
►Targets related to water and marine resources
E4 Biodiversity and Ecosystems
E4-1
►Transition plan and consideration of biodiversity and ecosystems in strategy and business model
E4, SBM-3
►Material IROs and their interaction with strategy and business model
E4, IRO-1
►Description of the processes to identify and assess material biodiversity and ecosystem-related IROs
E4-2
►Policies related to biodiversity and ecosystems
E4-3
►Actions and resources related to biodiversity and ecosystems
E4-4
►Targets related to biodiversity and ecosystems
ESRS Index
Description
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E5 Resource Use and Circular Economy
E5, IRO-1
►Material IROs and their interaction with strategy and business model
E5, IRO-1
►Description of the processes to identify and assess material resource use and circular economy-related
IROs
E5-1
►Policies related to resource use and circular economy
E5-2
►Actions and resources related to resource use and circular economy
E5-3
►Targets related to resource use and circular economy
E5-4
►Resource inflows
E5-5
►Resource outflows
S1 Own Workforce
S1, SBM-2
►Interests and views of stakeholders
S1, SBM-3
►Material IROs and their interaction with strategy and business model
S1-1
►Policies related to own workforce
S1-2
►Processes for engaging with own workers and workers' representatives about impacts
S1-3
►Processes to remediate negative impacts and channels for own workers to raise concerns
S1-4
►Taking action on material impacts and approaches to managing material risks and opportunities related to
own workforce
S1-5
►Targets related to managing material negative impacts, advancing positive impacts, and managing material
risks and opportunities
S1-6
►Characteristics of the undertaking’s employees
S1-8
►Collective bargaining coverage and social dialogue
S1-9
►Diversity metrics
S1-10
►Adequate wages
S1-14
►Health and safety metrics
S1-16
►Remuneration metrics (pay gap and total remuneration)
S1-17
►Incidents, complaints, and severe human rights impacts
S2 Workers in the Value Chain
S2, SBM-2
►Interests and views of stakeholders
S2, SBM-3
►Material IROs and their interaction with strategy and business model
S2-1
►Policies related to value chain workers
S2-2
►Processes for engaging with supply chain workers about impacts
S2-3
►Processes to remediate negative impacts and channels for value chain workers to raise concerns
S2-4
►Taking action on material impacts, risks and opportunities related to workers
S2-5
►Targets related to managing material negative impacts, advancing positive impacts, and managing material
risks and opportunities
S3 Affected Communities
S3, SBM-2
►Interests and views of stakeholders
S3, SBM-3
►Material IROs and their interaction with strategy and business model
S3-1
►Policies related to affected communities
S3-2
►Processes for engaging with affected communities about impacts
S3-3
►Processes to remediate negative impacts and channels for affected communities to raise concerns
S3-4
►Taking action on material impacts on affected communities, and approaches to managing material risks
and pursuing material opportunities related to affected communities, and effectiveness of those actions
S3-5
►Targets related to managing material negative impacts, advancing positive impacts, and managing material
risks and opportunities
ESRS Index
Description
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S4 Consumers and End-Users
S4, SBM-2
►Interests and views of stakeholders
S4, SBM-3
►Material IROs and their interaction with strategy and business model
S4-1
►Policies related to consumers and end-users
S4-2
►Processes for engaging with consumers and end-users about impacts
S4-3
►Processes to remediate negative impacts and channels for consumers and end-users to raise concerns
S4-4
►Taking action on material impacts on consumers and end-users, and approaches to managing material risks
and pursuing material opportunities related to consumers and end-users, and effectiveness of those
actions
S4-5
►Targets related to managing material negative impacts, advancing positive impacts, and managing material
risks and opportunities
G1 Business Conduct
G1, GOV-1
►The role of the administrative, management and supervisory bodies
G1, IRO-1
►Material IROs and their interaction with strategy and business model
G1, IRO-1
►Description of the processes to identify and assess material impacts, risks and opportunities
G1-1
►Business conduct policies and corporate culture
G1-2
►Management of relationships with suppliers
G1-3
►Prevention and detection of corruption and bribery
G1-4
►Incidents of corruption or bribery
G1-6
►Payment practices
ESRS Index
Description
Basis for preparation
BP-1 – General basis for preparation of the Sustainability Statement
This Sustainability Statement provides a comprehensive overview of the material sustainability matters of
adidas in the 2025 financial year. It is part of our Annual Report, which is published as an online version
and in .pdf format on our corporate website. The reporting period is the financial year from January 1 to
December 31, 2025.
The Sustainability Statement has been audited with limited assurance by PricewaterhouseCoopers GmbH
Wirtschaftsprüfungsgesellschaft (‘PwC’). It has been prepared for the adidas Group on a consolidated basis
in accordance with the European Sustainability Reporting Standards (ESRS). It also fulfils the requirements
for non-financial reporting obligations in accordance with §§ 289b ff. and 315b to 315c of the German
Commercial Code (HGB) (combined non-financial statement).
The Sustainability Statement has been prepared on a consolidated basis and includes adidas AG and all its
direct and indirect subsidiaries. An entity is considered a subsidiary if it is controlled by adidas AG. The
scope of consolidation of the Sustainability Statement therefore follows the financial reporting scope.
Further information on the scope of consolidation can be found here:
►SEE NOTE 02
The Sustainability Statement generally covers the value chain to the following extent: upstream,
downstream, and our own operations. It does not cover all possible value chain activities or actors, but
does so only where material information is present. We have not yet achieved full transparency, especially
in our multi-tiered upstream supply chain but also in the downstream supply chain. We are continuously
working to increasing this transparency, however, and explain related updates in the topical standards.
adidas has evaluated all ESRS standards and (sub-)sub-topics with a focus on its material impacts, risks
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and opportunities (IROs). The disclosures have been prepared in accordance with the guidance laid out in
ESRS 1.
No information corresponding to intellectual property, know-how or the results of innovations has been
omitted. The exemption from disclosure of impending developments or matters in the course of
negotiations does not apply.
BP-2 – Disclosures in relation to specific circumstances
Time horizons
The general definition of the time horizons applied by adidas is in line with the ESRS definition in ESRS 1
section 6.4. The same time horizons are applied for the adidas risk management methodology:
─Short-term: 1 year (equal to the reporting period of our financial statements)
─Medium-term: 2-5 years
─Long-term: ≥ 6 years
Changes in preparation or presentation of sustainability information
In section ESRS E5-4 ‘Resource inflows,’ the overview of materials used in adidas products and packaging
has been newly created. In 2024, we presented two tables, with one covering the inflow of product material
and the other covering packaging material. To ensure more clarity for the reader, we have combined both
tables into one, and we have consolidated the different materials into the biological and technical
categories. To allow for comparability, we structured the prior-year data in the same way. The total material
inflow in tons corresponds to the figure published in the previous year.
►SEE ESRS E5-4 – RESOURCE INFLOWS
Measurement basis
The information on methodologies and, if applicable, calculation factors, estimations (including value chain
estimations, sources, measurement and outcome uncertainties, planned actions to improve accuracy of
metrics, approximations and judgments) and assumptions and limitations is listed in the topical standards
with the relevant metrics along with references. The validation of the measurement of all disclosed metrics
by an external body other than the assurance provider, if applicable, is outlined in the respective topical
standards.
This Sustainability Statement contains forward-looking statements based on estimates that we have made
using the information available to us at the time this Sustainability Statement was prepared. Such forward-
looking statements are subject to uncertainties that are beyond the control of the company. In case the
underlying assumptions turn out to be incorrect or the described risks or opportunities materialize, actual
results and developments may deviate materially (negatively or positively) from those expressed in these
statements.
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Incorporation by reference
The ESRS disclosure requirements listed below are covered by references in the sections To our
Shareholders and Group Management Report of this Annual Report:
─ESRS 2 SBM-1 – Strategy, business model and value chain
─ESRS 2 SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and
business model
─ESRS 2 GOV-1 – The role of the administrative, management and supervisory bodies
The relevant sections and the references themselves are identified using links and footnotes.
Disclosure in relation to the German commercial code
This Sustainability Statement, which has been prepared in accordance with the ESRS, also meets the
requirements for the non-financial (group) statement prepared in accordance with §§ 289b ff. and 315b to
315c of the German Commercial Code (HGB) and thus represents the combined non-financial statement for
the adidas Group and adidas AG.
In order to fulfill our reporting obligations under commercial law, we declare the following
The full application of the European Sustainability Reporting Standards (ESRS) as a framework in
accordance with §§ 315c (3) in conjunction with 289d HGB is based on the importance of the ESRS as
reporting standards for sustainability reporting adopted by the European Commission.
As part of our double materiality assessment and our company-wide risk management system, we identify
and assess risks and opportunities using a consistent methodology that includes, among others, likelihood
of occurrence, time horizons, and impacts. This results in material risks arising from our own business
activities as well as from business relationships, products, and services that could have a negative impact
on non-financial aspects.
►SEE RISK AND OPPORTUNITY REPORT
Disclosures based on the EU Taxonomy regulation
In addition, with this Sustainability Statement, the adidas Group is meeting the requirements of Regulation
(EU) 2020/852 of the European Parliament and of the Council of 18 June on the establishment of a
framework to facilitate sustainable investment and amending Regulation (EU) 2019/2088 (hereafter EU
Taxonomy Regulation).
►SEE EU TAXONOMY
Additional information on the non-financial statement of adidas AG in accordance with § 289b HGB
In accordance with § 289b (2) HGB, adidas AG is making use of the option to refer to the adidas Group's
sustainability statement prepared in accordance with ESRS with regard to the content of its non-financial
statement. As this contains all information relevant to stakeholders, no framework was applied for the non-
financial statement of adidas AG. adidas AG is the parent company of the adidas Group and is responsible
for all corporate decisions.
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Governance
GOV-1 – The role of the administrative, management and supervisory bodies
As a globally operating stock corporation with its registered seat in Herzogenaurach, Germany, adidas AG is
subject to, inter alia, the provisions of the German Stock Corporation Act (Aktiengesetz – AktG). One of the
fundamental principles of German stock corporation law is a dual board system, whereby the Executive
Board is responsible for the management of the company, and the Supervisory Board is responsible for
advising and supervising the Executive Board. These two boards are strictly separated in terms of both
members and competencies. However, both boards cooperate closely in the interest of the company.
We report in our Annual Report on the composition of the Executive Board and the Supervisory Board,
including expertise, skills and diversity, roles and responsibilities, as well as expert committees. More
detailed information can be found here:
►SEE EXECUTIVE BOARD ►SEE SUPERVISORY BOARD ►SEE SUPERVISORY BOARD REPORT ►SEE DECLARATION ON CORPORATE GOVERNANCE
The Executive Board is responsible for independently managing the company with the aim of sustainable
value creation in the best interests of the company, and with developing the company’s strategic
orientation, coordinating it with the Supervisory Board, and ensuring its implementation. Furthermore, the
Executive Board determines business objectives, the company’s policy, and the organization of the Group.
In this respect, the Executive Board also systemically assesses risks and opportunities for the company
linked with social and environmental factors, as well as the environmental and social impact of its business
activities. More detailed information on material impacts, risks and opportunities (IROs) management can
be found below.
Additionally, the Executive Board ensures responsible management of business resources as well as
compliance with and observance of legal provisions and internal regulations by the Group companies. For
this purpose, the Executive Board sets up an Internal Control and Risk Management System adequate and
effective in view of the scope of business activities and the company’s risk situation which comprises a
Compliance Management System aligned to the company’s risk situation and also covers sustainability-
related objectives/matters. The Executive Board is obligated to act in the company’s interests and to strive
for a sustainable increase in the value of the company.
The composition of the Executive Board is determined by the Supervisory Board and reflects the
international structure of our company. Every decision by the Supervisory Board on the composition of the
Executive Board is made in the best interests of the company and with due consideration of all
circumstances in each individual case. The Executive Board is composed of four members:
─Bjørn Gulden – Chief Executive Officer
─Mathieu Sidokpohou – Chief Commercial Officer
─Harm Ohlmeyer – Chief Financial Officer
─Michelle Robertson – Global Human Resources, People and Culture
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One member of the Executive Board is female and three are male (1:3). The percentage of female Executive
Board members is therefore 25% in relation to the percentage of male Executive Board members, which is
75%. Thereby, the requirements of § 76 section 3a AktG are fulfilled, which stipulates that at least one
woman and at least one man be appointed as members of the Executive Board. In addition, Executive
Board members are subject to an age limit of 67 years.
The Executive Board’s skills in sustainability matters are enhanced through regular updates from internal
experts. More detailed information on each member of the Executive Board, including their expertise, skills
and experience relevant to adidas’ business, can be found here:
►SEE EXECUTIVE BOARD
The Executive Board reports to the Supervisory Board regularly, extensively, and in a timely manner on all
matters relevant to the company’s strategy, planning, business development, financial position, and
compliance, as well as on material business risks. Fundamental questions related to the corporate strategy
and its implementation are thoroughly discussed and aligned with the Supervisory Board.
Moreover, the Supervisory Board supervises and monitors the Executive Board in its conduct of business
and advises on questions relating to the management of the company, including sustainability issues/
matters.
The Supervisory Board is responsible for the appointment and dismissal of members of the Executive Board
and for the allocation of their areas of responsibility as well as for the compensation system and the
individual overall compensation of each Executive Board member.
When appointing new Executive Board members, the Supervisory Board ensures the best possible,
diverse,18 and mutually complementary Executive Board composition for the company and, together with the
Executive Board, ensures long-term succession planning. This ensures a sustainable process for identifying
and evaluating successor candidates for Executive Board positions.
The Supervisory Board consists of 16 members with four female members and twelve male members
(4:12). The percentage of female Supervisory Board members is 25% in relation to the percentage of male
Supervisory Board members, which is 75%. It thereby fulfills the statutory requirements of § 96 section 2
sentence 1 AktG, stipulating that the Supervisory Board must be composed of at least two women and two
men on the shareholder representatives as well as the employee representatives side, respectively. In
accordance with the German Co-Determination Act (Mitbestimmungsgesetz – MitbestG), half of its members
are representatives of shareholders and half are representatives of employees.19
More detailed information on the committees of the Supervisory Board, including their roles and
responsibilities, can be found below and here:
►SEE DECLARATION ON CORPORATE GOVERNANCE
According to the objectives for the composition of the Supervisory Board, the Supervisory Board should be
composed in such a way that qualified supervision of and advice to the Executive Board are ensured. Its
members, on the whole, are expected to have the knowledge, skills, and professional experience required
to properly perform the tasks of a supervisory board in a capital market-oriented international company in
the sporting goods industry.
More details regarding the composition of the Supervisory Board are published here:
►ADIDAS-GROUP.COM/BODIES ►SEE DECLARATION ON CORPORATE GOVERNANCE
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18 Diversity is understood in the broadest sense, including age, gender, cultural origin, nationality, educational background, professional qualifications, and
experience
19 More detailed information on the Supervisory Board members can be found in the competency profile tables below.
When preparing proposals for the election of shareholder representatives to the Supervisory Board, the
Supervisory Board takes into account the objectives regarding its composition and, in particular, aims to
fulfill the competency profile developed for the Supervisory Board as a whole. This profile also includes
skills and expertise in the areas of business strategy development and implementation, personnel planning
and management, accounting and financial reporting, governance/compliance, and sustainability issues/
matters relevant to adidas, including ESG aspects. At least one member of the Supervisory Board must
have expertise in the field of accounting, and at least one further member of the Supervisory Board must
have expertise in the field of auditing. Accounting and auditing also include sustainability reporting and its
audit and assurance. The Supervisory Board’s skills in sustainability issues/matters are enhanced through
regular updates from internal experts.
In the Supervisory Board’s assessment, the Supervisory Board as a whole, in its current position, fulfills the
objectives regarding its composition and the competency profile. A detailed overview can be found in the
Declaration on Corporate Governance – Supervisory Board competency profiles.
►SEE DECLARATION ON CORPORATE GOVERNANCE
In general, the age limit for the Supervisory Board members at the time of their appointment is 72 years.
Regarding the independence of its members, the Supervisory Board considers the following provisions to be
appropriate: More than half of the shareholder representatives of the Supervisory Board should be
independent within the meaning of the German Corporate Governance Code. From the company’s
perspective, Supervisory Board members are to be considered independent if they have no personal or
business relationship with the company or its Executive Board that may cause a substantial, and not merely
temporary, conflict of interest. In the opinion of the Supervisory Board, all shareholder representatives
qualified as independent in 2025. Consequently, the percentage of independent shareholder
representatives is 100% – and accordingly 50% with regard to the whole Supervisory Board.
In addition, more than two-thirds of the shareholder representatives should be free of any potential conflicts
of interest. This applies in particular to potential conflicts of interest that may arise as a result of an
advisory or governing body function among customers, suppliers, lenders, or other third parties. As a rule,
members of the Supervisory Board should not have a governing body or advisory function with any major
competitor and should not have a personal relationship with any key competitor.
Finally, as a general rule, the length of membership of the Supervisory Board should not exceed twelve
years or three terms of office.
The Supervisory Board and its committees regularly evaluate the efficiency of their work and resolve on
individual measures to further improve the organization of the Supervisory Board’s work. The Chairmen of
the committees regularly report to the Supervisory Board on the results of the committee work.
Within adidas, there are various management and supervisory roles that are responsible for overseeing
different aspects of material impacts, risks and opportunities (IROs) management throughout our
company. At the highest level are the Executive Board and the Supervisory Board.
The members of the Executive Board and Supervisory Board are regularly informed by expert teams who are
actively involved in managing all material IROs (in particular, for sustainability-related matters, the central
ESG function, the Social & Environmental Affairs team, the Governmental Affairs team, the Legal team,
Brand teams, Sourcing teams, Investor Relations, Sales, Enterprise Risk Management, Internal Controls,
and Internal Audit), about matters including legislative changes related to sustainability, as well as risks
and opportunities, in particular with regard to the increasing regulation of environmental/sustainability,
social and corporate governance issues. This also includes relevant training opportunities. This ensures
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that sustainability topics are embedded into the company’s decision making and regulatory/ reporting
readiness and compliance.
The Executive Board determines business objectives, the company’s policy, and the organization of the
Group. In this context, the Executive Board also systemically assesses the risks and opportunities for the
company related to social and environmental factors, as well as the environmental and social impact of its
business activities. The Executive Board members manage relevant IROs as part of their regular
responsibilities and coordinate with each other on all cross-functional measures. Collaboration within the
Executive Board is governed by the Rules of Procedure of the Executive Board and the Business Allocation
Plan. These documents specifically stipulate requirements for meetings and resolutions as well as for
cooperation with the Supervisory Board.
►ADIDAS-GROUP.COM/BODIES
The Executive Board put in place an Internal Control system and Risk Management system in light of the
scope of the business activities pursued by adidas and in light of its risk situation. This comprises, in
particular, the Risk and Opportunity Management System, the Internal Control System, the Compliance
Management System and the activities of Internal Audit team.
With regard to the Risk and Opportunity Management System, the Executive Board ensures
comprehensive and consistent management of all relevant risks and opportunities, including sustainability-
related objectives and matters. The Enterprise Risk Management department, reporting into the CEO,
governs, operates, and develops the company’s risk and opportunity management system and is the owner
of the centrally managed risk and opportunity management process on behalf of the Executive Board.
The Internal Control System represents a process embedded in the company-wide corporate governance
system. It is designed to provide continuous improvement of the reliability of the company’s external
financial reporting as well as the effectiveness and efficiency of operations, the reliability of non-financial
reporting, and compliance with applicable laws and regulations. The effectiveness of the non-accounting-
related controls is also regularly monitored by the Internal Audit department, reporting into the CEO, and the
Global and Market Internal Controls teams.
The adidas Chief Compliance Officer (CCO) oversees the company’s Compliance Management System,
which is aligned with the company’s risk situation. It establishes the organizational framework for company-
wide awareness of our internal rules and guidelines and for the legally compliant conduct of our business.
The Global Policy Manual provides a framework for basic work procedures and processes, and the Fair Play
Code of Conduct stipulates that all of our employees and business partners shall act ethically in
compliance with the laws and regulations of the legal systems in which they conduct business. The
Compliance Management System is designed to support the achievement of qualitative and sustainable
growth through good corporate governance, to reduce and mitigate the risk of financial losses or damage
caused by non-compliant conduct, and to protect and further enhance the value and reputation of the
company and its brand through compliant conduct.
The Internal Audit department, which works independently from all other functions of the organization,
provides the Executive Board and the Audit Committee with regular, objective assurance on the adequacy
and effectiveness of the company’s internal control system and risk management system.
More detailed information on the Internal Control System and Risk Management System can be found here:
►SEE RISK AND OPPORTUNITY REPORT
In addition, a central ESG function, reporting into the CEO, steers adidas’ sustainability and ESG direction,
including overseeing and monitoring the target setting relating to material impacts, risks and opportunities
in collaboration with the Executive Board and relevant functions.
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The head of the central ESG function leads the Sustainability and ESG Steering Board (SSB). The SSB is
composed of senior representatives from different functions across the company and ensures cross-
functional alignment, transparent end-to-end management, and execution of agreed-upon sustainability
goals. It aims to guide and embed sustainability and ESG within adidas’ functions, enable transformation,
ensure regulatory readiness, enable related reporting and risk management and drive communication as
well as engage with stakeholders.
We also maintain a separate compliance function, which operates as the Social & Environmental Affairs
(SEA) team, to monitor supplier-facing social and environmental compliance performance and human rights
impacts, reporting to the CEO through the General Counsel, who also acts as the Chief Human Rights
Officer (CHRO).
Notably, various ESG progress updates were provided to the Executive Board and Supervisory Board in
2025.
All of the above functions, teams, and governance bodies, as well as other functions that manage IROs at
the senior management level, report regularly to the Executive Board and to the Supervisory Board. This
includes information on the setting and monitoring of targets relating to material impacts, risks and
opportunities. The Supervisory Board is responsible for monitoring the effectiveness of the internal control
system and risk management systems. These duties are generally undertaken by the Audit Committee of
the Supervisory Board. ESG and sustainability topics at adidas are regularly discussed during Audit
Committee meetings. The Audit Committee is also responsible for the preparation and oversight of non-
financial reporting at adidas AG. The work of the Audit Committee is regulated by the Rules of Procedure.
More detailed information on the Audit Committee of the Supervisory Board, its members, responsibilities
and rules of procedure as well as the focus of its work in 2025 can be found here:
►ADIDAS-GROUP.COM/SUPERVISORY-BOARD-COMMITTEES ►SEE SUPERVISORY BOARD REPORT
In addition, regular communication with relevant stakeholder groups such as customers, suppliers,
business partners, investors, NGOs, or employees further add to the understanding of different stakeholder
perspectives.
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GOV-2 – Information provided to and sustainability matters addressed by the undertaking’s
administrative, management and supervisory bodies
Each of the Executive Board members, including the CEO, is regularly informed about the material impacts,
risks and opportunities (IROs), the implementation of due diligence, and the results and effectiveness of
policies, actions, metrics and targets adopted on an ongoing basis by their senior management teams
responsible for managing these IROs. The mentioned topics are also an integral part of the meetings of the
Supervisory Board and its Audit Committee.
►SEE ESRS 2 – GOV-1 – THE ROLE OF THE ADMINISTRATIVE, MANAGEMENT AND SUPERVISORY BODIES
In the periods between meetings, the Chairman of the Supervisory Board and the Chairman of the Audit
Committee maintain regular contact with the CEO and the CFO, conferring on matters such as adidas’
strategic orientation, business planning and development, major transactions, the risk situation, potential
trade-offs associated with IROs, control and risk management, and compliance. In addition, the Chairman
of the Supervisory Board and, as applicable, the Supervisory Board is informed about events of
fundamental importance for evaluating the situation, the development and management of the company, if
required, also at short notice.
The Executive Board, the Chairman of the Supervisory Board and the Chairman of the Audit Committee
report to the Supervisory Board regularly, extensively and in a timely manner on all matters relevant to the
company's strategy, planning, business development, financial position and results of operation, the
adequacy and further development of due diligence processes, including updates on the internal control
and risk management systems and compliance matters, as well as on special matters of company impacts,
risks and opportunities.
In the year 2024, we conducted a full-scope double materiality assessment (DMA), which was then
presented to the Audit Committee. In 2025, after a review of the 2024 results, we concluded that a
significant update was not necessary, and as a consequence, an unchanged list of all assessed material
matters compared to the prior year was presented to the SSB. The material matters and related IROs can
be found in the beginning of each topical standard under SBM-3 and IRO-1 (in the case of E5 and G1).
More detailed information on the content of the meetings of the Supervisory Board and its committees can
be found here:
►SEE SUPERVISORY BOARD REPORT
GOV-3 – Integration of sustainability-related performance in incentive schemes
The Supervisory Board is responsible for determining, implementing, and reviewing the compensation and
the compensation system for the Executive Board members. The Executive Board compensation system is
presented by the Supervisory Board for approval to the Annual General Meeting at least every four years
and in case of material changes.
The compensation of the Executive Board members is composed of non-performance-related (fixed) and
performance-related (variable) compensation components and consists of a fixed compensation, an annual
cash bonus (‘Performance Bonus’), a long-term share-based bonus (Long-Term Incentive Plan – ‘LTIP
Bonus’) as well as other benefits and pension benefits.
The variable performance-related compensation is designed to provide the right incentives for the Executive
Board to act in the interest of the company’s strategic direction, the shareholders, and other stakeholders,
as well as to ensure a successful, sustainable, and long-term corporate management and development.
When selecting the performance criteria, the Supervisory Board ensures that they are transparent, clearly
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measurable or identifiable and directly promote the implementation of the strategic direction, including from
an ESG perspective.
Performance Bonus
As the annual variable performance-related component, the Performance Bonus serves as compensation for
the Executive Board’s performance in the past financial year in line with the short-term development of the
company. It incentivizes operational success within the established strategic framework. At the start of the
financial year, the Supervisory Board establishes the respective weighted performance criteria. In the case
of 100% target achievement, the target amount of the Performance Bonus corresponds to 30% of the target
direct compensation of the respective Executive Board member.
The amount of the Performance Bonus is determined based on the achievement of weighted criteria. Two of
these criteria are financial performance criteria, which are the same for all Executive Board members and
are overall weighted at 80% (‘financial criteria’). The other criteria are defined for the Executive Board as a
whole or individually for the respective Executive Board member and are overall weighted at 20% ('other
criteria'). These other criteria may comprise financial, non-financial or ESG targets and allow for further
differentiation depending on the specific operating and strategic priorities. If several non-financial or ESG
targets are selected, the Supervisory Board also determines their relative weighting.
These other criteria for the 2025 financial year will be disclosed ex-post in the Compensation Report 2025.
In this Compensation Report, the respective target achievements will be explained transparently, and the
concrete calculation of the Performance Bonus amount will be set out comprehensively.
Long-Term Incentive Plan (LTIP)
The LTIP is designed to link the long-term performance-related variable compensation of the Executive
Board to the company’s performance and thus to the interests of the shareholders. Therefore, the LTIP is
share-based and oriented toward achieving long-term targets. The LTIP consists of annual tranches, each
with a term of four years. Each LTIP tranche consists of a three-year performance period followed by a one-
year lock-up period. In case of 100% target achievement, the LTIP target amount for the respective LTIP
tranche corresponds to 40% of the target direct compensation of the respective Executive Board member.
The amount of the LTIP Bonus is determined based on the achievement of uniform financial and non-
financial performance criteria for all Executive Board members, which are derived from the long-term
strategic direction of adidas.
During the performance period, a total of 80% of the target achievement is measured against financial
criteria and a total of 20% is measured against non-financial or ESG criteria. At the start of the performance
period of an LTIP tranche, the Supervisory Board also determines the non-financial or ESG criteria and
target values for the entire duration of the performance period.
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For the LTIP tranche 2025 (performance period 2025 to 2027), the following ESG-related performance
criteria have been set with regard to the strategic targets:
─Reduction of CO2 intensity per product:20 10% weighting. The target setting is derived from the CO2e
emissions intensity target per product for 2025 (-15% intensity reduction compared to 2017 and -9%
intensity reduction compared to 2022) and is in line with our SBTi-validated targets for 2030 and 2050.
►SEE ESRS E1-4 – TARGETS RELATED TO CLIMATE CHANGE MITIGATION AND ADAPTATION
─Percentage of female managers:21 10% weighting. The target setting is derived from the ambition of
increasing the global percentage of women in leadership positions to 50% by 2033.
►SEE ESRS S1-5 – TARGETS RELATED TO MANAGING MATERIAL NEGATIVE IMPACTS, ADVANCING POSITIVE IMPACTS, AND MANAGING MATERIAL
RISKS AND OPPORTUNITIES
The Compensation Report for each financial year includes an outlook on the application of the
compensation system for the current financial year. This outlook will transparently disclose ex-ante the
determination of the financial and non-financial or ESG criteria. After expiry of the respective performance
period, the performance criteria and targets, as well as the respective target achievement will be outlined
transparently and comprehensively disclosed in the Compensation Report. The target values and target
achievement of the performance criteria determined for the LTIP tranche 2025, as well as the associated
determination of the variable performance-related compensation, will be disclosed in detail in the
Compensation Report 2027.
With regard to the Supervisory Board, the compensation for Supervisory Board members consists of a fixed
compensation component for their work on the Supervisory Board and an additional compensation
component for committee work as well as an attendance fee. There are no performance-related targets that
are measured against sustainability-related targets and/or sustainability-related metrics. The compensation
system for the members of the Supervisory Board is set out in § 18 of the Articles of Association of adidas
AG. The Supervisory Board compensation system will be submitted to the Annual General Meeting for
approval at least every four years or in case of material changes.
A more detailed description of the Executive Board and Supervisory Board compensation, the key
characteristics of the incentive scheme for the Executive Board, the target setting, and the target
achievement can be found here:
►ADIDAS-GROUP.COM/COMPENSATION
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20 CO2 equivalent emissions allocated to an average adidas product. Calculated by dividing total emissions of Scope 1, 2, and 3 (without use phase) in kg CO2e
by the total number of products manufactured with regard to season Spring/Summer and season Fall/Winter. The internationally most recognized standards such
as the GHG Protocol (Greenhouse Gas Protocol), SBTi (Science Based Targets initiative), and PEFCR (Product Environmental Footprint Category Rules Guidance)
are applied for the calculation. This non-financial performance criterion is part of the combined non-financial statement, which is subject to an audit by an
external auditor.
21 Global percentage of women in leadership positions at Director level or higher.
GOV-4 – Statement on due diligence
The following table shows where information about our due diligence processes can be found throughout
this Sustainability Statement:
Embedding due diligence in governance, strategy and
business model
ESRS 2, SBM-1, SBM-2, SBM-3; SBM-2 and SBM-3 also in
specific topical standards S1, S2, S3, S4
Engaging with affected stakeholders in all key steps
of the due diligence
ESRS 2, SBM-2; impact, risk and opportunity management
sections in S1, S2, S3, S4
Identifying and assessing adverse impacts
ESRS 2, IRO-1; impact, risk and opportunity management
sections in each topical standard; transition plan and
consideration of biodiversity and ecosystems in strategy and
business model in E4
Efforts to mitigate adverse impacts
ESRS 2; impact, risk and opportunity management sections in
each topical standard
Tracking and communicating the effectiveness of
these efforts
ESRS 2; metrics and targets sections in each topical standard
GOV-4 – Statement on due diligence
Core elements of due diligence
Sections in the Sustainability Statement
GOV-5 – Risk management and internal controls over sustainability reporting
We recognize the importance of robust risk management and internal control processes that uphold the
integrity of our ESG disclosures, including but not limited to sustainability reporting. Controls for ESG-
related risks are assessed and integrated into the internal controls system (ICS), in alignment with
strategic, regulatory, reporting, and operational ESG objectives.
Our risk management and internal controls system aim to cover all major processes relevant to
sustainability reporting. Risk management is integrated at both entity and process levels, ensuring that
risks are identified, assessed, and mitigated through documented controls. Management is responsible for
implementing and operating the internal controls system. The Global Internal Controls function provides
monitoring, testing, and advisory support to drive continuous improvement, with regular reporting to the
Audit Committee and management bodies on overall internal control effectiveness. ESG-specific reporting
will be phased in starting 2026.
ESG risk management and internal control processes are guided by the following key considerations and
inputs, which inform prioritization and continuous improvement.
─External reporting integrity: Safeguarding the accuracy and reliability of disclosed ESG data, with
emphasis on quantitative metrics and steering KPIs.
─Regulatory compliance: Supporting adherence to applicable ESG-relevant local, national, and
international ESG regulations and standards.
─Internal and external audits: Incorporating audit insights to identify ESG-related risks, deviations, and
necessary corrective actions.
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─Enterprise risk management: Considering and aligning with ESG-related risks and opportunities,
including risk mitigation measures, as identified in the enterprise risk and opportunity assessment.
►SEE RISK AND OPPORTUNITY REPORT
─Stakeholder engagement: Considering the expectations and concerns of our key stakeholders, including
investors, wholesale customers, consumers, employees, and the adidas community.
Internal control processes include the following key components:
─Risk identification and assessment: Identifying potential risks within the key processes and assessing
their impact and likelihood using our internally aligned assurance risk rating methodology. Risks
considered include data integrity and completeness, accuracy of estimations and assumptions,
availability and timeliness of data, errors or fraud, process and system integrity, regulatory compliance,
inadequate management oversight, and failure to meet ESG strategic or operational objectives. These
risks are assessed and prioritized based on their potential impact and likelihood, ensuring that our
internal controls system is designed to address the most material risks to the reliability and compliance
of our ESG disclosures.
─Control identification and assessment: Determining whether the designed controls meet the process
objectives and are effective in preventing or detecting the risks (e.g., errors or fraud that could lead to
material misstatements in reporting disclosures). Where control gaps are identified, we continuously
evaluate and implement additional or enhanced controls as needed.
─Monitoring and testing: Controls are subject to regular monitoring and testing procedures, with
responsibilities assigned to relevant functions and formalized in the internal controls system.
─Communication and reporting: Integrating all ESG-relevant risks and control testing results into existing
reports for the Audit Committee of the Supervisory Board and management bodies, ensuring that both
high-risk deviations and other findings are addressed and periodically reported. The process includes
regular review and integration of findings into relevant functions and processes.
─Continuous improvement: Enhancing the quality and effectiveness of controls during planned revision
cycles by re-evaluating regulatory requirements, capabilities, and processes.
Looking ahead, the internal controls system will continue to evolve throughout the ESG journey over the
next few years, with the following priorities:
─Highlight risks and control gaps: Continue to assess and highlight risks and control gaps within key
processes, data, and systems to support ongoing enhancement of our ESG internal controls
environment.
─Expand the scope: Implement a phase-in approach to integrating ESG into the internal controls system
and expand efforts to cover key business processes and regulations in line with our evolving ‘ICS over
ESG priorities & roadmap.’
─Optimize processes: Refine and optimize our risk management and internal control processes to achieve
greater efficiency and efficacy.
Since 2024, the ESG Compliance Framework project, an internal initiative, has translated identified gaps
into capability and process requirements to advance ESG compliance and reporting in the coming years. To
achieve this, investments have been made in capabilities that mitigate prioritized risks and address gaps in
processes, systems, and data.
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In 2025, the ‘ICS over ESG priorities & roadmap’ was defined to support the achievement of ESG strategic,
regulatory, reporting and operational objectives. This was developed in alignment with the ESG Compliance
Framework project, among other inputs as described above. For new or evolving processes within prioritized
areas, advisory support is provided during the design and build phases to ensure risks are adequately
mitigated from the outset. For sufficiently mature processes, process walkthroughs were conducted to
evaluate whether the key risks are adequately mitigated by the implemented controls.
The assessed controls are then integrated into the internal controls system and may be subject to regular
independent monitoring or testing to evaluate their effectiveness, depending on risk assessment outcomes
and business priorities. From 2026, ESG-specific internal control testing results will be integrated into this
annual reporting to the Audit Committee of the Supervisory Board and management bodies, providing
insights into the design and operational effectiveness of ESG-related controls, as well as a comprehensive
overview of all identified findings.
Strategy
SBM-1 – Strategy, business model and value chain
Business model and value chain
To achieve our mission of being the best sports brand in the world, our business model is centered around
designing and developing performance and lifestyle products that resonate with our consumers. We aim to
set trends, drive innovation, and respond swiftly to consumer preferences, ultimately creating brand heat.
Our production is carried out in collaboration with independent manufacturing partners in our upstream
value chain, which includes Tier 4 and beyond suppliers for raw material sourcing, Tier 3 and 2 suppliers for
material manufacturing, spinning, coloring and finishing, and Tier 1 suppliers involved in assembling adidas
products. Our net sales are diversified globally – an overview of the details is provided in the Markets and
Sales Channels section.
►SEE MARKETS AND SALES CHANNELS
In our own operations within our business activities, we design and develop products, engage with
consumers through marketing activities and sales, and tailor our global distribution network to meet the
needs of our sales channels and consumers. We respond to consumer preferences, collaborate with
investors, and partner with brands and creators to generate demand for our products. To drive these
business activities, key input factors are essential to deliver value to our investors, consumers, and
business partners by creating innovative products and sustainable offerings, responding to consumer
demands and creating brand heat (output factors).
Our products are designed to create positive downstream value chain outcomes, such as improved athlete
performance, enhanced consumer satisfaction, increased product demand, and the creation of brand heat.
Additionally, we work to reduce the adverse ESG impacts and risks of our business activities throughout our
entire value chain, from sourcing materials to minimizing environmental and social impacts through applying
our due diligence processes and Workplace Standards with our suppliers. While we strive for positive
outcomes, we acknowledge that negative outcomes can occur. We remain committed to balancing
attractive investments with reducing adverse ESG-related impacts to ensure long-term financial and brand
success.
Our business model and operating model enable us to quickly react and adapt to an ever-changing world –
whether this involves the evolving demands of consumers, geopolitical developments that may impact our
sourcing and supply chain, or environmental and social changes regarding places where we or our business
partners operate. This flexibility, combined with our risk management system, builds the foundation of our
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resilience, especially in the long-term but also in the short- to mid-term. The key elements of our business
model and strategy are outlined in detail in the ‘Description of Business Model’ section (and its related
subsections). Further information on the process and outcomes of our enterprise risk and opportunity
assessment can be found in the Risk and Opportunity Report. In addition, our Business Model Overview
includes an illustrative figure summarizing the main inputs, outputs, and outcomes of our business
activities, along with the value chain actors involved.
►SEE BUSINESS MODEL OVERVIEW ►SEE RISK AND OPPORTUNITY REPORT
Headcount of employees by geographical area
As of the end of the reporting period, adidas employed approximately 64,938 people worldwide. The
geographical distribution of our employees is as follows.
Regions
Emerging Markets
13,419
12,267
Europe
18,816
18,470
Greater China
8,998
8,718
Japan/South Korea
4,396
4,236
Latin America
7,042
6,331
North America
12,267
12,013
Total
64,938
62,035
SBM-1 – Number of employees by geographical area
2025
2024
Sustainability-related goals
Our commitment to sustainability is rooted in our purpose: ‘Through sport, we have the power to change
lives.’ To underline this commitment, we set targets and ambitions, measure progress, and establish
strong partnerships that allow us to create – and drive – actions to either reduce negative impact or amplify
positive impact across our key focus areas (detailed in this Sustainability Statement). Our commitment
extends beyond individual products, materials, customer groups or geographies – we focus on developing
solutions at scale. We will continue joining forces with the industry and our peers to drive systemic change,
and we will continue to empower our employees to become sustainability ambassadors, just as we invite
our consumers globally to engage and connect with us on the topic of sustainability. Lastly, we also aim to
uphold high standards in the area of social compliance across our supply chain. For further information on
our individual targets, please refer to the respective metrics and targets sections in the topical standards
of this Sustainability Statement.
SBM-2 – Interests and views of stakeholders
We seek to ensure that we address the topics that are most salient to our business and our stakeholders.
To identify these topics, we actively engage with our stakeholders and consider their views and opinions
when making decisions that shape our day-to-day operations as well as when setting targets. We
continuously communicate with relevant stakeholder groups such as customers, suppliers, business
partners, investors, NGOs, or employees to enable stakeholder feedback and act on stakeholder concerns.
This is integral to our human rights and environmental impact due diligence activities and the shaping of
our social and environmental strategies and plans.
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Our stakeholders are those people or organizations who affect and are affected by our operations, including
the following:
─adidas employees
─Authorizers: governments, trade associations, shareholders, and the Executive Board
─Business partners: suppliers, licensees, and service providers
─Workers in our suppliers’ factories
─Human rights defenders: trade unions and community activists
─Opinion formers: journalists, community members, academics, and special interest groups
─Customers: professional athletes, distributors, retailers, and consumers
Engaging openly with stakeholders and establishing ways to increase transparency and disclosure has long
been central to our approach. The adidas Stakeholder Relations Guideline specifies key principles for the
development of stakeholder relations and the different forms of stakeholder engagement. It highlights the
importance of meeting the changing expectations of our stakeholders and encourages open, honest
communication that fosters trust and cooperation. Our principles that guide stakeholder relations
development are:
─Those affected by adidas’ business have the right to be informed about our activities, participate in a
transparent stakeholder engagement process, and be involved in issues and opportunities that affect
them.
─Stakeholders will be provided with timely and accurate information about our business activities, and we
will take their needs and concerns into account when making decisions on behalf of the company.
─We will actively seek stakeholder input and feedback on business decisions and will act on what we
learn.
─We will encourage stakeholders to define how they wish to be consulted and strive to remain flexible and
responsive to stakeholder preferences.
─We will identify, assess, and address potential risks of stakeholders and adidas to ensure a high-quality
engagement process and outcome.
─Those acting on behalf of adidas must be willing to be influenced by stakeholders and, where
appropriate, to act on their input, even if this means changing the company’s business plans.
─We respect the values and culture of each stakeholder. When disagreements with stakeholders arise
that cannot be resolved, our employees will always show respect for the diversity of views presented.
adidas’ stakeholders are diverse, which translates into a wide range of engagements, some of which are
ongoing and span many years, and some of which are targeted, based on current issues or trends requiring
critical feedback. Thus, our numerous stakeholder engagements range from basic communication,
consultation and dialogue to more in-depth processes such as advisory panels or multi-stakeholder forums.
The most frequent forms of stakeholder engagements we practice include:
─Holding formal stakeholder consultation meetings (stakeholder dialogue) with workers, union
representatives, NGOs, and suppliers
─Meetings with investors and investment analysts
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─Employee engagement through surveys, internal information, reporting and induction programs, as well
as grievance channels to the senior management and Works Councils
─Responding to inquiries from consumers, media, and authorities
─Collaborating with other brands and other companies in joint initiatives
─Participating in multi-stakeholder initiatives
─Engaging in outreach to the academic community, governmental organizations, and governments
Regardless of the form of engagement, we will seek to ensure that the approach, at a minimum, addresses
key stakeholder expectations; ensures that stakeholder concerns, perceptions, and viewpoints can be fully
and accurately expressed and recorded; and enables us to provide a coherent response to stakeholder
expectations and concerns.
Our stakeholder engagement informs our operational decision-making and is considered to improve our
strategy and business model. For example through our ongoing exchange with the investor and analyst
community, we are well aware of their expectations and respond accordingly. Another example is the
employee listening survey, the results of which are carefully analyzed and acted upon by the different
internal business functions and teams. We also use collaborations and partnerships to build leverage for
systemic change in our industry, such as for efforts in the textile and footwear supply chain to mitigate GHG
emissions, to strengthen chemical management practices, and to raise social and environmental
standards. In addition, we build awareness, capacity, and knowledge of laws and rights among factory
management and workers by partnering with leading providers such as the International Labor
Organization’s (ILO) ‘Better Work’ program and the United Nations’ International Organization for Migration
(IOM) with the objective of ensuring that the labor rights of foreign and migrant workers in the adidas supply
chain are upheld.
As consumer demand and all other stakeholder interests and views may change over time, we will adapt
our approach accordingly to ensure we meet these expectations. Each function at adidas continuously
adjusts its actions to stakeholder group expectations based on the results of stakeholder engagement and
dialogue. In this way, we ensure that we address the topics that are most salient to our business and our
stakeholders, and the challenges ahead.
During our double materiality assessment (conducted in 2024 and reconfirmed in 2025), we used internal
management to represent key external stakeholder interests and views, as detailed in IRO-1. This approach
allowed us to gain a clear understanding of the interests and views of our most important stakeholders and
to have them represented in our discussions and evaluations of the materiality for each topic. Experts and
senior management from all relevant teams were involved to represent the environmental, social and
governance perspectives.
►SEE ESRS 2 – IRO-1 – DESCRIPTION OF THE PROCESS TO IDENTIFY AND ASSESS MATERIAL IMPACTS, RISKS AND OPPORTUNITIES
We strive to keep up with our stakeholders’ views and interests regarding sustainability impacts. Due to the
cross-functional nature of these impacts, each team that interacts with our key stakeholder groups informs
its management teams and the Executive Board of any relevant major changes on a regular and/or ad hoc
basis. The Supervisory Board reports publicly on the content of its meetings in each Annual Report.
►SEE SUPERVISORY BOARD REPORT
For further information on stakeholder engagement (including key stakeholders across different key focus
areas), please refer to the topical standards or to our website.
►ADIDAS-GROUP.COM/ENGAGEMENT WITH STAKEHOLDERS
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SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and
business model
Disclosures related to the SBM-3 data points as well as the list of material impacts, risks and opportunities
(IROs) are displayed in each topical standard, where applicable.
Impact, risk and opportunity management
IRO-1 – Description of the process to identify and assess material impacts, risks and
opportunities
Conducted in 2024 and reconfirmed in 2025, our process and methodology for identifying material impacts,
risks and opportunities (IROs) are based on the requirements of ESRS 1, section 3 and the application
requirement of ESRS 1 AR16. The provided list of sustainability matters from ESRS 1 AR16, alongside our
existing material topics, formed the basis for developing a comprehensive long list of potentially material
sustainability matters. This list also formed the basis for the IRO identification process. To determine if a
sustainability matter is material or not material, the analysis was carried out from both an impact
materiality perspective and a financial materiality perspective (double materiality). Information on what kind
of data and assumptions were applied can be found in the section ‘Data and assumptions’ in this ESRS 2
IRO-1 chapter. A sustainability matter is deemed material according to the double materiality concept if it is
material from either or both perspectives. Other criteria have not been applied.
Impact materiality
Our impact materiality analysis followed the ESRS recommended process (please refer to ESRS 1, section
3.4) considering impacts in which adidas is involved through its own operations and as result of its
business relationships. We identified, assessed and evaluated the impacts of all sustainability matters at
the sub-topic level and, where applicable, sub-sub-topic level. To evaluate each impact, we first identified
whether the impact was actual or potential, positive or negative, short, medium or long term, and at which
value chain level the impact occurred. Based on this initial assessment, the materiality of actual negative
impacts was evaluated based on the severity of the impact, while the materiality of potential negative
impacts was evaluated based on the severity and likelihood of the impact. Severity was assessed using the
following three parameters: scale, scope and irremediability. In the case of a potential negative human
rights impact, the severity of the impact took precedence over its likelihood. For actual positive impacts,
the materiality was based on the scale and scope of the impact, whereas for potential positive impacts, the
materiality was based on the scale, scope and likelihood. Finally, we considered all topics described above
and gave each respective topic a score ranging from 1 for marginal impact to 5 for significant impact.
Financial materiality
For financial materiality, we also followed the recommended ESRS process for assessing and evaluating the
financial materiality of each identified risk and opportunity. We evaluated whether a sustainability matter
causes or could cause a material risk or opportunity for adidas based on a combination of the likelihood of
occurrence and the potential magnitude of the short-, medium- or long-term financial effects. This included
material risks or opportunities affecting our net income and/or cash flows and/or our reputation or the
health and safety of our employees. We aligned the financial materiality methodology with our enterprise
risk management (ERM) methodology to ensure consistency in how we evaluate risks for internal
management purposes and also in how we report them in this Sustainability Statement and the Risk and
Opportunity Report. In general, our sustainability-related risks are assessed at the same level of priority as
all other business-related risks.
►SEE RISK AND OPPORTUNITY REPORT
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Finally, we considered all aspects explained in this paragraph and applied a scoring from 1 (marginal) to 5
(significant) from a financial materiality perspective. The materiality threshold for both impact and financial
materiality was set at 3, meaning that every topic with a score of 3 or higher is deemed material. We set
the threshold at 3 to ensure that we reflect only material matters to our business model in this report,
which was ensured by reviewing those matters that were close to the threshold in detail and validating the
final list with internal experts and management.
Process of our double materiality assessment
After creating a long list of sustainability matters mainly based on ESRS 1, AR16 as well as on some entity-
specific topics as a result of our prior materiality analyses and previous non-financial reporting, we
identified generally relevant topics to potentially be reported on together with responsible internal content
owners and expert teams. With them, we then proceeded to identify, assess, and prioritize potential and
actual positive and negative impacts on people and the environment, as well as risks and opportunities
that have or may have financial effects on our company.
Part of the process involved the mapping of affected stakeholders or users of information to identify and
assess sustainability matters, integrating their perspectives and views. Although there was no direct
involvement of external stakeholders, adidas teams acted as representatives of external stakeholder views
and interests to ensure they were considered in the topic assessment. For example, affected communities
and value chain workers were represented by the Social & Environmental Affairs team, the investor
perspective by the Investor Relations team, the employee perspective by the Human Resources team, and
the consumer perspective by the Brand team. Additionally, the Enterprise Risk Management team was
involved in all discussions to ensure completeness and alignment in evaluating and assessing
methodologies. It is important to note that both processes – ERM (enterprise risk management) and DMA
(double materiality assessment) – inform each other so that identified material sustainability matters are
reflected in the ERM process and all risks are reflected in the DMA process.
Through a series of workshops over a period of several months with internal stakeholders, including
responsible experts and senior management, we identified, assessed and validated impacts, risks, and
opportunities. This process included the assessment – performed by the experts in collaboration with the
ERM department – of potential connections between our impacts and dependencies and the risks and
opportunities that could arise from impacts and dependencies between sustainability matters. Further
information on topical dependencies can be found in the respective topical standards as well as in the Risk
and Opportunity Report. Generally, the success of our business model depends on our products, which are
made of natural resources such as cotton, leather and rubber, as well as other materials such as recycled
polyester. The availability and cost of these resources are critical to ensuring the supply of our products to
consumers when and where they want them and at a competitive price level. The manufacturing process for
our products is very energy intensive and still requires a high level of manual work provided by the workers
in our upstream value chain. Similarly, the success of our business activities depends on the creativity of
our own employees, impactful collaborations with designers and celebrities, and our marketing and
sponsoring activities to ensure that we offer relevant products to our consumers. For the double materiality
assessment, we considered all of these dependencies on natural, human, and social resources to evaluate
the IROs.
Senior management and their expert teams are responsible for monitoring and managing our impacts, risks
and opportunities from sustainability matters:
─Environmental: Material environmental impacts occur mainly in the upstream value chain. We have
established teams that work in close collaboration with our suppliers to manage material impacts, e.g.,
GHG emissions, water, biodiversity, waste, and use of chemicals.
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─Social: Material social impacts occur at every stage of the value chain and relate to the workers of
manufacturing partners, our own employees, and our consumers. We have established teams and
functions that manage highly material impacts, such as the Social & Environmental Affairs team in the
Legal function to manage human rights and working conditions in the supply chain, the HR function to
manage impacts, risks and opportunities related to our own workforce, and the Marketing and Sales
function to manage consumer interests.
─Governance: Material governance-related impacts such as compliance and corporate culture topics are
managed by the legal function, i.e., the Compliance team together with HR.
The senior management of these teams as well as experts in specific material topics were deeply involved
in the double materiality assessment and provided final judgment on the results based on their subject-
matter expertise. The involved senior managers also have a direct link to other internal decision-making
processes up to the Executive Board level.
The Internal Controls team was involved in the entire materiality assessment process. Furthermore, for the
collection and disclosure of material quantitative metrics, the team members worked together with content
and data owners to ensure that data quality requirements for the metrics were met. For more information
on internal controls for sustainability reporting, please see the general risk management process and the
GOV-5 section.
►SEE RISK AND OPPORTUNITY REPORT ►SEE ESRS 2 – GOV-5 – RISK MANAGEMENT AND INTERNAL CONTROLS OVER SUSTAINABILITY REPORTING
Value chain
An in-depth definition of the adidas value chain served as the foundation for our double materiality
assessment and identification of sustainability matters and IROs. Given our business model, which relies
on outsourced manufacturing and production processes with independent partners, we have segmented the
value chain into three distinct parts:
─Upstream: all of our suppliers, e.g., product manufacturers
─Own operations: our own offices, distribution centers (DCs), and retail stores
─Downstream: our wholesale customers and end consumers
For further details on the different players, input and output factors as well as outcomes related to our
business model, please refer to our business model graphic in the ‘Our Company’ section of the
management report.
►SEE BUSINESS MODEL OVERVIEW
Data and assumptions
For the double materiality assessment, adidas covered all its business activities globally and used existing
internal data, focusing on its own operations as well as upstream and downstream value chain stages (e.g.,
ERM risk and opportunity overview, GHG emissions calculations, water usage data, chemical usage data,
biodiversity assessment, material usage data, own workforce data, supplier risk assessments, financial
data) alongside regularly collected data on consumption, social compliance, suppliers and consumer
insights. Additionally, we incorporated external data, focusing on the latest scientific studies, benchmarks,
regulations and other reporting standards such as GRI, SASB, and the GHG Protocol.
Revision of materiality assessment
In 2025, we continued to apply the results of our previous double materiality assessment (conducted in
2024), as no significant changes in our business model, stakeholder expectations or overall business
context were identified. This conclusion is based on the experiences of our prior-year DMA process, in-depth
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benchmarking exercises of other companies’ 2024 sustainability statements according to ESRS, and, most
importantly, discussions with our internal experts for each sustainability matter as preparation of the 2025
reporting process. In general, we plan to revise the assessment every two to three years or in the context of
material changes, e.g., to our business model and/or stakeholder expectations.
Topic-specific processes
In addition to our general approach and processes for identifying and assessing our IROs, we conducted
the following topic-specific processes, including actions and steps of the double materiality assessment:
E1 Climate change
Process to identify
and assess the
impacts on GHG
emissions [//ESRS
E1-20a IRO-1]
To identify and assess climate-related IROs, we use our GHG emissions as reported in past
years’ Annual Reports for Scope 1, 2, and 3. Based on the calculated GHG emissions, we come
to the conclusion that our impact on climate change is distributed unequally across the value
chain, with the most significant impact generated in the upstream supply chain, particularly in
raw materials production and processing. Our current assessment covers future potential
sources of GHG emissions due to the nature of our business model.
[//ESRS E1-20b
IRO-1]
Our approach to identify and assess physical risks is explained in ESRS E1 Climate Change.
►SEE ESRS E1 – SBM-3 – MATERIAL IMPACTS, RISKS AND OPPORTUNITIES AND THEIR INTERACTION WITH STRATEGY
AND BUSINESS MODEL
[//E1-20c IRO-1]
Our approach to identify and assess transition risks is explained in ESRS E1 Climate Change.
►SEE ESRS E1 – SBM-3 – MATERIAL IMPACTS, RISKS AND OPPORTUNITIES AND THEIR INTERACTION WITH STRATEGY
AND BUSINESS MODEL
E2 Pollution
[//E2-11a+b IRO-1]
We screened our business activities to identify and assess actual and potential pollution-
related IROs, focusing on the upstream supply chain while also considering our own operations
and downstream activities. Existing data from manufacturing partners (incl. their site location,
use of substances of concern, and wastewater discharge quality) supported this assessment.
With regard to pollution of water, adidas annually assesses water risks in sourcing locations
using the WRI tool (Aqueduct) to help us understand physical, reputational, and regulatory risks
across our supply chain (scope based on the publicly available global factory list). Baseline and
future scenarios (2030, 2050, 2080) were analyzed. Findings show that a relevant part of our
supply chain operates in water-stressed areas and relies on water-intensive processes,
exposing us to water withdrawal risks. Affected communities are considered indirectly via
stakeholder outreach.
With regard to microplastics, quantifying microplastic-related pollution remains an industry-wide
challenge due to the lack of a holistic methodology on how to assess its release and impact on
the environment.
E3 Water and marine resources
[//E3-8a+b IRO-1]
The process, screening, methodologies, assumptions, tools, and consultations used are
consistent with those applied for ESRS E2.
E4 Biodiversity and ecosystems
Description of
processes to identify
and assess material
biodiversity and
ecosystem-related
IROs [//E4-17a
IRO-1]
Our approach to identify and assess actual and potential impacts on biodiversity is explained in
ESRS E4 Biodiversity and Ecosystems.
►SEE ESRS E4-1 – TRANSITION PLAN AND CONSIDERATION OF BIODIVERSITY AND ECOSYSTEMS IN STRATEGY AND
BUSINESS MODEL
[//E4-17b IRO-1]
adidas assessed biodiversity dependencies in its upstream value chain (the only value chain
level with material biodiversity IROs), focusing on used materials and economic activities. The
assessment linked the apparel industry to ecosystem services, detailing how natural capital
assets provide these services and are affected by environmental changes. By using the Encore
tool, we assessed the importance of natural capital assets and the impact of environmental
changes considering our economic activities and the materials required to manufacture our
products.
IRO-1 – Topic-specific processes
Standard
Description
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[//E4-17c IRO-1]
Transition and physical risks and opportunities related to biodiversity and ecosystems have
been identified and assessed, focusing on impacts and dependencies in the upstream value
chain. The assessment criteria included regulatory compliance, cost implications, and
environmental impacts. Material risks identified include increased operational costs due to the
need for traceability systems and sourcing-certified raw materials to comply with regulations like
the EU Deforestation-free Regulation (EUDR) and the 2030 EU Biodiversity Plan. Non-
compliance with these regulations could result in fines and restricted market access,
particularly in the EU. Additionally, decreased biodiversity may compromise the availability and
cost of nature-derived materials such as cotton, leather, and natural rubber, due to factors like
reduced pollinators and ecosystem health issues. Water availability for production processes,
such as dyeing and tanning, also poses significant risks.
[//E4-17d IRO-1]
adidas recognizes the importance of systemic risks related to biodiversity and ecosystems, but
they have not been a primary focus of the current assessment process due to the lack of a
widely recognized methodology and the significant cross-collaboration and time required. adidas
plans to address this gap by gathering insights through the Science Based Targets Network
(SBTN) and other sources.
[//E4-17e IRO-1]
Consultations with affected communities on sustainability assessments of shared biological
resources and ecosystems have not been conducted directly or formally yet. Affected
communities were considered indirectly in our double materiality assessment. Our internal
experts maintain regular contact with external stakeholders, and their views are indirectly
incorporated into our decision-making and strategy development.
[//E4-19a+b IRO-1]
Information on sites in or near biodiversity-sensitive areas are disclosed in the topical standard
E4. As potential impact on biodiversity was deemed low, no mitigation measures are deemed
necessary.
►SEE ESRS E4 – SBM-3 – MATERIAL IMPACTS, RISKS AND OPPORTUNITIES AND THEIR INTERACTION WITH STRATEGY
AND BUSINESS MODEL
E5 Resource use and circular economy
Description of the
processes to identify
and assess material
resource use and
circular economy-
related IROs
[E5-11a+b IRO-1]
The methodologies, assumptions, and tools used in the screening process of assets and
activities are consistent with those applied for ESRS E4. The involvement of stakeholders
regarding E5 was conducted in alignment with our general approach and double materiality
assessment process.1
G1 Business conduct
Description of the
processes to identify
and assess material
impacts, risks and
opportunities [//
G1-6 IRO-1]
The process for identifying material impacts, risks and opportunities related to business
conduct matters followed the same process and criteria described in the 'Process of our double
materiality assessment' section. Additionally, we specifically included:
─Location: We take into account local regulations, market conditions, and socio-political
factors of the locations where we operate.
─Activity: We evaluate the specific business activities involved, such as manufacturing,
marketing, and distribution, to identify potential impacts, risks and opportunities unique to
each function.
─Sector: We analyze industry-specific risks and opportunities, taking into account trends, the
competitive landscape, and sector-specific regulations.
─Transaction structure: We consider the nature and structure of transactions, including
partnerships and other business arrangements.
Impact, risk and opportunity management is a company-wide activity that utilizes key insights
from the members of the Executive Board as well as from global and local business units
and functions.2
1 For further information ►SEE ESRS 2 – GENERAL DISCLOSURES
2 For further information ►SEE RISK AND OPPORTUNITY REPORT
IRO-1 – Topic-specific processes
Standard
Description
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IRO-2 – Disclosure Requirements in ESRS covered by the undertaking’s Sustainability
Statement
We have determined the material information to be disclosed based on the impacts, risks and opportunities
that we had assessed to be material and on the guidance of ESRS 1, section 3.2. The information
presented reflects the full scope of these requirements. The assessment of the materiality of information
did not lead to an exclusion of any disclosure requirement. The full list of ESRS disclosure requirements
included in this report can be found here:
►SEE ESRS INDEX
In general, we followed the ESRS Disclosure and Application Requirements, including the Minimum
Disclosure Requirements (MDRs) for policies, actions and resources, and metrics and targets for the
material sustainability matters. Due to the overarching nature of some of the MDR-related data, general
information is presented below and applicable to all topical standards. For detailed information on all
existing policies, actions, and targets, please refer to the corresponding topical standard.
Minimum disclosure requirements – policies
Policies play a critical role in managing actual and potential impacts and risks as they provide a structured
framework for guiding decisions and ensuring accountability. adidas has policies linked to most of its
material IROs and they are implemented and monitored by the respective teams, according to their
objective and scope, generally covering all activities and locations where adidas operates. The adidas
Consequences Management Policy sets a four-step process to deal with any potential policy non-
compliance. The process ensures that all parties involved – the employee, the investigation team, and the
company as a whole – can trust the resulting consequences are fair, impartial, and consistent.
The four steps covered in the Consequences Management Policy encompass: determine the nature and
severity of the policy violation; consider mitigating and aggravating factors; review prior similar cases; and
determine appropriate consequences. The policy is applicable to all adidas employees and all material
matters.
Minimum disclosure requirements – actions and resources
The management of the identified material IROs is supported by actions, which are presented in each
topical standard. These actions are ongoing, unless stated otherwise.
Due to the nature of our business model, most environmental and social impacts related to human rights
occur in our upstream supply chain. Consequently, OpEx and CapEx related to ESG topics mainly occur
there. These include our independent manufacturing partners who might, as a consequence, increase their
selling price for us. In this context, OpEx and CapEx in relation to the management of ESG topics for our
own operations are not disclosed due to significance. This is well aligned with our disclosures around the
EU Taxonomy provided in this Sustainability Statement. An overview of the teams responsible for managing
the different ESG topics in the value chain can be found in each topical standard.
►SEE EU TAXONOMY
Minimum disclosure requirements – metrics and targets
Metrics and targets are also an integral part of the approach we apply to managing our material IROs. Our
metrics, unless stated otherwise, are not validated by an external body other than the assurance provider.
As for our targets, our target setting process is led by the responsible teams internally, which apply not only
the latest scientific evidence, but also best industry practice, internal benchmarks, and other sources of
reliable data. They collectively aim at addressing the specific IROs and therefore contribute to the broader
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ESG agenda globally (local aspects are described in the topical standards, where relevant). Additionally, in
the cases where certain stakeholders were involved in target setting, they are specifically mentioned in the
respective topical standard.
For sustainability matters where no targets are currently established, we still track the effectiveness of our
policies and/or actions through comprehensive processes for progress evaluation. The lack of targets is
due to the nature of the matter (e.g., purely related to compliance) or the lack of accepted methodologies
including industry standards to assess and manage the matter (e.g., microplastics), among other reasons.
Where relevant, an ambition is set and also monitored. Targets and ambitions are explained in detail in
each of the topical standards. For the targets where no baseline year or value is stated, the performance is
measured on a yearly basis.
Overall, we systematically track and assess the effectiveness of actions, programs, and targets through
several mechanisms that range from regular monitoring of applicable performance metrics and project
management practices to after-action reviews. Furthermore, if any actual impact required the provision of
remedy for those harmed by these impacts, a reference is given to relevant actions in the corresponding
topical standard.
In instances where we made use of the exemptions outlined in ESRS 1 Appendix C – List of phased-in
disclosure requirements (and Delegated Regulation (EU) 2025/1416), these are explicitly stated.
Nevertheless, our commitment is to address all reporting requirements diligently and to provide the
necessary context and information.
ESRS 2 General disclosures
SBM-3
ESRS 2 SBM-3 paragraph 48(e) (anticipated financial effects)
E1 Climate change
E1-9
Anticipated financial effects from material physical and transition risks and potential climate-related
opportunities
E2 Pollution
E2-6
Anticipated financial effects from material pollution-related risks and opportunities
E3 Water and marine resources
E3-5
Anticipated financial effects from material water and marine resources-related risks and opportunities
E4 Biodiversity and ecosystems
E4-6
Anticipated financial effects from material biodiversity and ecosystem-related risks and opportunities
E5 Resource use and circular economy
E5-6
Anticipated financial effects from material resource use and circular economy-related risks and
opportunities
S1 Own workforce
S1-7
Characteristics of non-employee workers in the undertaking’s own workforce
S1-11
Social protection
S1-12
Percentage of employees with disabilities
S1-13
Training and skills development metrics
S1-15
Work-life balance
List of phased-in disclosure requirements
ESRS
disclosure
requirement
Information
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Datapoints from other EU legislation in accordance with ESRS 2 Appendix B
The following table provides an overview of all datapoints derived from other EU legislation listed in ESRS 2
Appendix B of this standard.
►ESRS 2, GOV-1
21 (d)
Board’s gender diversity
SFDR/BRR
Obligatory
21 (e)
Percentage of board members who are
independent
BRR
Obligatory
►ESRS 2, GOV-4
30
Statement on due diligence
SFDR
Obligatory
►ESRS 2, SBM-1
40 (d) (i)
Involvement in activities related to fossil fuel
activities
SFDR/P3/BRR
n.a.
40 (d) (ii)
Involvement in activities related to chemical
production
SFDR/BRR
n.a.
40 (d) (iii)
Involvement in activities related to controversial
weapons
SFDR/BRR
n.a.
40 (d) (iv)
Involvement in activities related to cultivation
and production of tobacco
BRR
n.a.
►ESRS E1-1
14
Transition plan to reach climate neutrality by
2050
ECL
Material
16 (g)
Undertakings excluded from Paris-aligned
benchmarks
P3/BRR
n.a.
►ESRS E1-4
34
GHG emission reduction targets
SFDR/P3/BRR
Material
►ESRS E1-5
38
Energy consumption from fossil sources
disaggregated by sources (only high climate
impact sectors)
SFDR
Material
37
Energy consumption and mix
SFDR
Material
40-43
Energy intensity associated with activities in high
climate impact sectors
SFDR
Material
► ESRS E1-6
44
Gross Scope 1, 2, 3, and total GHG emissions
SFDR/P3/BRR
Material
53-55
Gross GHG emissions intensity
SFDR/P3/BRR
Material
►ESRS E1-7
56
GHG removals and carbon credits
ECL
Material
►ESRS E1-9
66
Exposure of the benchmark portfolio to climate-
related physical risks
BRR
Phase-In; not
disclosed
66 (a);
66 (c)
Disaggregation of monetary amounts by acute
and chronic physical risk; location of significant
assets at material physical risk
P3
Phase-In; not
disclosed
67 (c)
Breakdown of the carrying value of its real estate
assets by energy-efficiency classes
P3
Phase-In; not
disclosed
69
Degree of exposure of the portfolio to climate-
related opportunities
BRR
Phase-In; not
disclosed
►ESRS E2-4
28
Amount of each pollutant listed in annex II of the
E-PRTR regulation emitted to air, water, and soil
SFDR
Not material
►ESRS E3-1
9
Water and marine resources
SFDR
Material
13
Dedicated policy
SFDR
Not material
14
Sustainable oceans and seas
SFDR
Not material
►ESRS E3-4
28 (c)
Total water recycled and reused
SFDR
Not material
29
Total water consumption in m3 per net revenue
on own operations
SFDR
Not material
ESRS datapoints from other EU legislation
Disclosure
requirement
Data point
Legislation
Materiality/
Applicability/
Disclosure
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► ESRS E4, SBM-3
(ESRS 2)
16 (a) (i)
Activities negatively affecting biodiversity-
sensitive areas
SFDR
Material
16 (b)
Land degradation, desertification, or soil sealing
SFDR
Material
16 (c)
Threatened species
SFDR
Material
►ESRS E4-2
24 (b)
Sustainable land/agriculture practices or policies
SFDR
Material
24 (c)
Sustainable oceans/seas practices or policies
SFDR
Material
24 (d)
Policies to address deforestation
SFDR
Material
►ESRS E5-5
37 (d)
Non-recycled waste
SFDR
Not material
39
Hazardous waste and radioactive waste
SFDR
Not material
►ESRS S1, SBM-3
(ESRS 2)
14 (f)
Risk of incidents of forced labor
SFDR
Not material
14 (g)
Risk of incidents of child labor
SFDR
Not material
►ESRS S1-1
20
Human rights policy commitments
SFDR
Material
21
Due diligence policies on issues addressed by
the fundamental International Labor Organisation
Conventions 1 to 8
SFDR
Material
22
Processes and measures for preventing
trafficking in human beings
SFDR
Not material
23
Workplace accident prevention policy or
management system
SFDR
Material
►ESRS S1-3
32 (c)
Grievance/complaints-handling mechanisms
SFDR
Material
►ESRS S1-14
88 (b)
and (c)
Number of fatalities and number and rate of
work-related accidents
SFDR/BRR
Material
88 (e)
Number of days lost to injuries, accidents,
fatalities, or illness
SFDR
Material
► ESRS S1-16
97 (a)
Unadjusted gender pay gap
SFDR/BRR
Material
97 (b)
Excessive CEO pay ratio
SFDR
Material
►ESRS S1-17
103 (a)
Incidents of discrimination
SFDR
Material
104 (a)
Non-respect of UNGPs on Business and Human
Rights, ILO principles, or OECD guidelines
SFDR/BRR
Not material
►ESRS S2, SBM-3
(ESRS 2)
11 (b)
Significant risk of child labor or forced labor in
the value chain
SFDR
Material
►ESRS S2-1
17
Human rights policy commitments
SFDR
Material
18
Policies related to value chain workers
SFDR
Material
19
Non-respect of UNGPs on Business and Human
Rights, ILO principles, or OECD guidelines
SFDR/BRR
Material
19
Due diligence policies on issues addressed by
the fundamental International Labor Organisation
Conventions 1 to 8
BRR
Material
►ESRS S2-4
36
Human rights issues and incidents connected to
its upstream and downstream value chain
SFDR
Material
►ESRS S3-1
16
Human rights policy commitments
SFDR
Material
17
Non-respect of UNGPs on Business & Human
Rights, ILO principles, or OECD guidelines
SFDR/BRR
Material
►ESRS S3-4
36
Human rights issues and incidents
SFDR
Material
►ESRS S4-1
16
Policies related to consumers and end-users
SFDR
Material
17
Non-respect of UNGPs on Business and Human
Rights and OECD guidelines
SFDR/BRR
Material
►ESRS S4-4
35
Human rights issues and incidents
SFDR
Not material
►ESRS G1-1
10 (b)
United Nations Convention against Corruption
SFDR
Material
10 (d)
Protection of whistleblowers
SFDR
Material
ESRS datapoints from other EU legislation
Disclosure
requirement
Data point
Legislation
Materiality/
Applicability/
Disclosure
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►ESRS G1-4
24 (a)
Fines for violation of anti-corruption and anti-
bribery laws
SFDR/BRR
Material
24 (b)
Standards of anti-corruption and anti-bribery
SFDR
Material
SFDR – Sustainable Finance Disclosure Regulation
BRR – Banking Regulatory Reporting
P3 – Pillar 3 Disclosure Requirements
ECL – European Climate Law
ESRS datapoints from other EU legislation
Disclosure
requirement
Data point
Legislation
Materiality/
Applicability/
Disclosure
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Climate Change
Climate change is a material issue for adidas across its entire value chain, with most GHG emissions arising
upstream. Physical risks, including changing weather patterns and more frequent extreme events, could
affect material availability, supplier operations, logistics and infrastructure, with implications for costs and
continuity of supply. adidas also faces transition risks linked to emissions pricing, regulation and increased
stakeholder scrutiny. Addressing these risks also creates strategic opportunities: increasing the share of
renewable electricity, improving energy efficiency, accelerating the coal phase-out in the supply chain and
reducing product carbon intensity to strengthen supply chain resilience and support long-term value creation.
Our climate strategy levers and actions
Our climate strategy is based on the defined decarbonization levers and actions to reduce GHG emissions
across the value chain, with a focus on Scope 3 GHG emissions in our upstream value chain.
adidas climate strategy levers and targets 2030
1 CO2e in million tons.
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Scope 1 and 2 GHG emissions (own operations)
Scope 3 GHG emissions (supply chain)
─Drive energy efficiency at our sites
─Increase the share of renewable
electricity
─Conduct environmental risk assessment
for our facilities
─Maximize the use of renewable
electricity and drive energy efficiency
─Phase out the use of coal wherever
feasible
─Develop and scale lower-carbon
materials and innovative solutions in
material processing, manufacturing, and
product assembly
Targets
Our climate strategy targets are validated by the SBTi and in line with a 1.5°C pathway – the most ambitious
goal established by the Paris Agreement – contributing to a net-zero1 future.
Climate strategy targets
9% reduction
in carbon intensity per product by 2025
Progress during the year was supported by the delivery against key mitigation levers, including
significant advances in phasing out coal from our suppliers (where feasible), increasing the use of
renewable electricity across our own operations and supply chain, and continuing to scale lower-carbon
materials.
Baseline 2022, in kg CO2e
Scope 1 and 2 GHG emissions
Scope 3 GHG emissions
2025 result
2030 Target
2025 result
2030 Target
-22%
-70%
-5%
-42%
Baseline 2022
Baseline 2022
Long-term ambition
net-zero
GHG emissions by 2050
1 Net-zero: As per SBTi, net-zero GHG emissions are achieved when human-caused GHG emissions are balanced by removing the same quantity of emissions from
the atmosphere over a specified period (‘net-zero’ future). This is necessary at the global level to stabilize temperature increase at 1.5°C. In line with the SBTi
criteria, we aim to achieve net-zero by cutting all our possible GHG emissions (by more than 90%) through direct GHG emission reduction actions and neutralizing
the residual GHG emissions through permanent carbon removal and storage.
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ACHIEVED
ESRS 2 – General disclosures
The climate crisis is one of the greatest challenges of our time, and managing its impacts for our business
operations is a strategic priority for adidas. In 2025, we published the new adidas Climate Transition Action
Plan (CTAP), outlining our aim to achieve net-zero by 2050, ensure a just transition, and build climate
resilience across our value chain. Endorsed by the Executive Board, the plan is fully integrated into our
business strategy and governance, recognizing that meaningful progress depends on strong collaboration
within and across industries.
►ADIDAS-GROUP.COM/SUSTAINABILITY
SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and
business model
Energy
Negative
Impact
Actual
n.a.
Upstream and
downstream
Upstream energy consumption occurs mainly at raw material production and manufacturing processes
that still partially rely on non-renewable energy sources. Downstream energy use occurs during the
product use and end-of-life phases (e.g. washing and disposal of products).
Energy
Risk
n.a.
Mid-term
Own
operations
Energy risks in our own operations could relate to:
─(T) Increased stakeholder scrutiny: Although our own energy consumption is relatively low compared
to our value chain, the expectation from various stakeholders is that we maintain our long-term
approach in managing and reporting energy use in a systematic way and that we show progress
toward reducing it. Failure to do so could lead to reputational risks.
─(T) Higher operating costs
Climate change
mitigation
Negative
Impact
Actual
n.a.
Upstream and
downstream
The majority of adidas’ total GHG emissions originate from upstream activities such as raw material
processing, manufacturing, and product assembly processes, while a lower portion occurs downstream
during the product use and end-of-life phases.
Climate change
mitigation
Risk
n.a.
Long-term
Upstream
Climate change mitigation risks in our upstream value chain could be related to:
─(T) Exposure to carbon pricing mechanisms and carbon-related regulation and litigation: We expect
an increase in regulations from authorities aiming at preventing or reducing GHG emissions. This
could lead to increased exposure to direct and indirect carbon pricing as well as product-related
regulations and requirements. In turn, these could result in increased operating costs and reporting
requirements. An increase in regulation could also lead to higher exposure to litigation for non-
compliance, both for adidas and our business partners.
Climate change
mitigation
Risk
n.a.
Mid-term
Own
operations
Climate change mitigation risks in our own operations could relate to:
─(T) Increased stakeholder scrutiny: Although our Scope 1 and 2 GHG emissions are a very small
portion of our overall GHG emissions, the expectation from various stakeholders is that we maintain
our long-term approach in managing and reporting Scope 1 and 2 GHG emissions in a systematic
way and that we show progress toward reducing them. Failure to do so could lead to reputational
risks.
Climate change
adaptation
Risk
n.a.
Long-term
Upstream
Climate change adaptation risks in our upstream value chain could relate to:
─(P) Physical damage to our business partners’ properties and disruption of their business
operations: Extreme weather events and changes in overall weather patterns could increasingly lead
to damages to our business partners’ properties and disruptions of their business operations. In
turn, these could result in higher operating costs for business partners and, eventually, in higher
cost of sales for adidas.
─(P) Interruptions in our supply chain: Extreme weather events and changes in weather patterns could
lead to business interruptions and disruptions within our supply chain, such as interruptions in key
transport routes or port operations. In turn, these could result in lower revenues and higher
insurance and operating costs for business partners and, eventually, in higher cost of sales for
adidas.
─(P) Harm to and lower productivity of our business partners’ workforce: An increase in average
temperatures and heat waves worldwide could harm our business partners’ workforce and reduce
their productivity.
─(P + T) Increased cost of materials and low-carbon technologies: Changes in weather patterns could
reduce the availability of existing materials, which may result in increased costs. At the same time,
the higher demand (and potentially limited availability) for low-carbon technologies could lead to
higher operating costs for our business partners and, eventually, result in higher cost of sales for
adidas.
SBM-3 – Climate change and material impacts, risks and opportunities (IROs)
Material matter
Material IRO
Classification
Time horizon
Value chain
Description1
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Climate change
adaptation
Risk
n.a.
Long-term
Own
operations
Climate change adaptation risks in our own operations could relate to:
─(P) Physical damage to our own properties and business disruptions in own operations: Extreme
weather events and changes in overall weather patterns could increasingly lead to damage to our
own properties (such as office buildings, DCs, and retail stores) and inventories and business
disruptions in our own operations. In turn, these could result in lower revenues, as well as higher
insurance and operating costs.
─(P) Harm to and lower productivity of our own workforce: An increase in average temperatures and
heat waves worldwide could harm and reduce the productivity of our own workforce.
Climate change
adaptation
Risk
n.a.
Long-term
Downstream
Climate change adaptation risks in our downstream value chain could relate to:
─(T) Changes in consumer preferences and product demand: The transition to a low-carbon economy
could influence consumers’ preferences and expectations toward brands and products, negatively
impacting sales and market share if expectations are not met.
1 Physical risk (P), Transition risk (T).
SBM-3 – Climate change and material impacts, risks and opportunities (IROs)
Material matter
Material IRO
Classification
Time horizon
Value chain
Description1
Our climate scenario and subsequent resilience analysis, finalized in mid-2024, covered our entire value
chain and all the physical and transition risks identified in the risk and opportunity identification process.22
We used a climate modeling tool to assess our exposure to those risks across three GHG emission
scenarios (low, intermediate, and high GHG emissions) and three different timeframes (2030, 2040, 2050)
which are aligned with our climate strategy milestones and targets (2030 and 2050).
Using input from the tool, we created a digital visual representation (‘digital twin’) of adidas’ business
model and operational footprint: locations of key assets such as distribution centers, sourcing countries,
and production regions of main materials, locations of strategic suppliers’ facilities, as well as
transportation routes. Risks and opportunities were quantified, where possible, and aggregated to inform
the resilience analysis and strategic planning in alignment with TCFD recommendations.
Key assumptions for the climate scenario analysis:
─The basis was our current asset base and value chain, excluding potential changes in sourcing or
materials due to industry volatility.
─Varying business growth rates were considered for the period until 2030 and from then onwards until
2050. In addition, the analysis factored in different growth assumptions between net sales on the one
hand and production volumes on the other hand. For the GHG emission growth projection until 2030,
production and sales forecast numbers were included until 2025, and a constant business growth rate
was assumed for the subsequent years. The current product division mix and material mix are assumed
to remain constant.
─We did not assume any production or process efficiency improvements for suppliers and other business
partners. We also did not assume technology-driven yield improvements in the production of raw
materials.
─We only considered the achievement of our climate strategy and planned outcomes of risk handling
actions when assessing the potential financial impact of selected transition risks (e.g., increased
shareholder scrutiny, increased exposure to carbon pricing and increased costs of low carbon materials
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22 The climate modeling tool included indicators based on the latest IPCC recommendations. For physical risks, it included the exposure to selected climate
hazards – such as wind, flood, avalanche, landslide, extreme temperature, wildfire, snowfall, earthquake, and soil liquefaction – using more specific climate
indicators. For transition risks, it used the Shared Socioeconomic Pathways (SSP) scenarios and the six scenarios explored in the third version of the Network for
Greening the Financial System (NGFS) to compute bespoke transition indicators.
and technologies). For all the other assessed risks we did not assume any expected future outcomes of
actions currently in place.
─Depending on the analyzed risk and the associated tiering within the upstream supply chain, cost pass-
through assumptions were considered on a case-by-case basis to quantify the potential impact on
adidas.
Scenario overview:
─Low-emission scenario (RCP2.6-SSP126): This future is in line with a 1.5°C pathway and characterized by
a GHG emissions level that remains stable until 2020, then declines and becomes negative by 2100. An
early introduction of climate policies, which become increasingly stringent over time, would lead to the
mitigation of both transition and physical risks. This scenario implies strong collective action, with
transition risks more likely to occur in the short to medium term and a potential reduction of the severity
of physical risks occurring in the long term.
─Intermediate-emission scenario (RCP4.5-SSP245): GHG emissions peak around 2040, followed by a
decline. In this scenario, strong climate policies are not in place, yet the exhaustible character of non-
renewable fuels is considered. If limited global action is taken, transition risks would decline in the short
term. Inaction, however, would increase the severity and frequency of physical risks in the long term.
─High-emission scenario (RCP8.5-SSP585): This future projects a worst-case or business-as-
usual scenario in which GHG emissions continue to rise throughout the 21st century. It assumes that no
major efforts to reduce GHG emissions are taken, resulting in severe global warming.
Key transition risks assessed (TCFD-aligned) include: energy costs for suppliers, carbon pricing exposure
(Scope 1-3), costs to transition to low-carbon technologies/materials, transportation costs, and shareholder
scrutiny. These were evaluated under all scenarios using NGFS data to quantify potential impacts.23
It is important to note that although the climate scenarios diverge from each other in the near to mid-term,
the resulting risks and impacts on our business remain relatively similar across scenarios until 2050, with
more pronounced differences expected only in the long term (2070-2100). The climate scenario analysis
showed that, irrespective of the selected GHG emissions scenario, risks become more relevant from 2030
onwards.
The insights gained from the climate scenario analysis were then used to perform our resilience analysis.
We assessed each material risk, its trend related to the different emission scenarios, and our ability to
manage such risks in the future, considering the nature of our business model as well as the actions
described later in this chapter related to our specific strategies, such as the climate and biodiversity
strategies. The scope and timeframe applied were the same as those used in our climate scenario
analysis, as explained earlier. By considering all the aforementioned aspects, we were able to assess our
overall resilience to climate change.
►SEE ESRS E1-3 – ACTIONS AND RESOURCES IN RELATION TO CLIMATE CHANGE POLICIES
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23 Central Banks and Supervisors Network for Greening the Financial System (NGFS) is a global coalition of central banks and financial supervisors that work
together to strengthen the financial system’s ability to manage climate- and environment-related risks and to support the transition toward a sustainable,
low-carbon economy.
(P) Physical damage and business
disruption in our own or business
partners’ properties
The risk is more significant in a high-emission
scenario and in the 2050 timeframe.
─Regular update of climate risk assessment and
to inform location decisions
─Insurance coverage for property damage and
business interruption
(P) Interruptions in our supply chain
The risk is more significant in a high-emission
scenario and in the 2050 timeframe.
─Diversification in the logistics portfolio
─Incident and crisis response
─Business continuity plans
(P, T) Increasing costs of materials
and high costs of low-carbon
technologies
The risk is quite stable across the three
different emission scenarios and timeframes.
─Flexibility in the materials portfolio
─Material cost forecasts
─Focus on material and technology innovation
(P) Harm to and lower productivity
of our own and business partners’
workforce
The risk is more significant in a high-emission
scenario and in the 2040/2050 timeframes.
─Insurance coverage
─Training and education
─Use of adequate heating and cooling systems
(T) Exposure to carbon pricing
mechanisms, carbon-related
regulations, and litigation
The risk is more significant in a low-emission
scenario, combined with a scenario where
adidas does not meet its corresponding GHG
emissions reduction targets.
─Continuous monitoring of regulatory landscape
─Delivery of the climate transition plan
─Continuous review and adaptation of sourcing
and logistics infrastructure
─Continuous review and implementation of the
sustainable material roadmap as part of the
climate transition plan
─Avoidance of major dependencies on one
sourcing country/region
(T) Stakeholder scrutiny and
activism
The risk is more significant in a low-emission
scenario, combined with a scenario where
adidas does not meet its corresponding GHG
emission reduction targets.
─Transparent communication of climate transition
plan and its year-on-year delivery
(T) Lack of ability to adapt to
changes in consumer preferences
and product demand
The risk is prevalent in all emission scenarios.
─Consumer Insights to monitor market
developments
─Climate transition plan
─Product and marketing innovation
─Continuous consumer engagement and dialogue
1 Physical risk (P), Transition risk (T).
2 Analysis based on emission scenarios and timeframes. See E1 SBM-3 Climate change and material impacts, risks and opportunities (IROs) table for more information about each risk.
SBM-3 Resilience analysis
Identified risks1
Trend2
Risk-handling actions
Based on the analysis of the results, we conclude that our business model is sufficiently resilient to
climate change for the foreseeable future. The main aspects that drive our resilience are the nature of our
business model, with its inherent agility and flexibility in terms of, e.g., product design, material selection,
and sourcing locations, as well as the actions we take related to our climate strategy. In addition, our
capital management policy ensures a strong capital base and efficient access to capital markets, which is
essential for sustaining future business development and adapting to potential climate impacts.
While our scenario analysis is an effective tool for providing guidance and direction on our exposure to
climate-related risks, it cannot precisely estimate future costs and investments due to uncertainties in
national climate policies and macroeconomic effects. These factors remain difficult to model accurately and
may influence the global decarbonization pathway.
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E1-1 – Transition plan for climate change mitigation
We intend to contribute to climate change mitigation by implementing, optimizing, and scaling proven
solutions and collaborating on the development of long-term alternatives.
The majority of adidas’ GHG emissions originate from upstream activities, such as raw material cultivation
and extraction, processing and preparation, as well as product assembly, while GHG emissions stemming
from our own operations account for around 2% of total GHG emissions.
adidas 2025 total GHG emissions along the value chain1
1 Excluding GHG emissions related to the use of sold products.
In 2025, we reviewed, updated, and publicly released our new Climate Transition Action Plan (CTAP). Led
and orchestrated by the Sustainability and ESG team and developed in close collaboration with key
functions including Product Development & Sourcing, Supply Chain Management, Workplaces, and Finance,
the CTAP aligns our climate strategy with broader strategic, operational, and financial objectives. The CTAP
is informed by our climate scenario analysis and transition risk assessments, ensuring that the mitigation
actions identified are robust and consistent with the potential near- and long-term risks and opportunities
across our value chain. The plan was endorsed by the Executive Board.
►ADIDAS-GROUP.COM/SUSTAINABILITY
Our climate strategy aims to reduce emissions in line with a 1.5°C pathway, contributing to a net-zero
future. adidas confirms that it is not excluded from the EU Paris-Aligned Benchmarks, reaffirming the
alignment of our CTAP with the goals of the Paris Agreement. Targets validated by the Science Based
Targets initiative (SBTi) include:
Long-term ambition:
─We aim to achieve net-zero GHG emissions (Scope 1, 2, and 3) for the entire value chain by 2050.24
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24 In line with the SBTi criteria, we aim to achieve net-zero by cutting all our possible GHG emissions (by more than 90% against the baseline year 2022) through
direct GHG emission reduction actions and neutralizing the residual GHG emissions through permanent carbon removal and storage.
Near-term ambition:
─We aim to reduce absolute GHG emissions across the supply chain (Scope 3)25 by 42% by 2030,
measured against a baseline of 2022.
─We aim to reduce absolute GHG emissions across our own operations (Scope 1 and 2) by 70% by 2030,
measured against a baseline of 2022.
We apply the established methodologies to account for GHG emissions, based on the GHG Protocol, and
include all GHG categories that are material to adidas’ business, as presented later in this chapter.
►SEE ESRS E1-6 – GROSS SCOPE 1, 2, 3 AND TOTAL GHG EMISSIONS
The Supervisory Board defined carbon intensity per product as a performance criterion for the Long-term
Incentive Plan (LTIP) of the Executive Board. In addition, as a reflection of the importance of our ESG
roadmap, including our climate strategy, in 2024, the Sustainability and ESG team began reporting directly
to the CEO, ensuring strategic oversight and integration. This team leads the orchestration, tracking, and
refinement of our climate strategy, embedding action plans across all relevant business functions.
adidas climate strategy levers and targets 20301
1 CO2e in million tons.
Financial considerations for our climate strategy
The implementation of our climate strategy will require continued investments, both within our own
operations as well as in relation to our upstream value chain levers. For own-operations measures, these
investments are managed by adidas, while the upstream value chain measures are to a large extent to be
funded directly by our suppliers. This can have an indirect impact on us through the cost of products, which
is reflected in the cost of sales of adidas. Due to the evolving nature of the topic and to be able to better
account for market developments (e.g., increasing access to renewable energy in different regions,
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25 The target boundary includes biogenic emissions and removals from bioenergy feedstocks.
improvements of different countries' energy mix), technological developments, and changes in our own and
our suppliers' asset portfolio, investments are decided on and implemented in due course and on an
ongoing basis. An exact quantification of expected impacts on cost of sales, OpEx, and CapEx until 2030 is
yet to be defined. However, we consider the impact to be manageable due to the expected overall
development of the company and its financial position over time, the available time to implement mitigation
actions, and expected efficiency gains in our supply chain. The funding of the adidas climate strategy is
intended to be largely driven by operational cash flow generation. Taking our credit metrics, liquidity profile
and financial policies into consideration, our ability to fund our climate strategy is determined to
be sufficient.
As adidas’ core business activities are not currently eligible under the EU Taxonomy, the Taxonomy KPIs
included in this report do not materially indicate the strength or effectiveness of our climate strategy. While
alignment of eligible activities would not significantly affect progress toward our climate targets, we remain
focused on the initiatives that, in our view, most effectively support the delivery of our climate goals.
►SEE EU TAXONOMY
In line with SBTi, emissions from Category 3.11 ‘Use of sold products’ are excluded from our near- and
long-term reduction targets. There is no risk from any potential locked-in GHG emissions from our products
toward the achievement of our targets, and no specific actions to manage locked-in GHG emissions from
the use phase of our sold products are deemed necessary. In addition, any potential locked-in GHG
emissions from key assets of our physical infrastructure related to property, plant, and equipment as well
as right-of-use assets (leased assets) affect Scope 1 and 2 emissions within the own-operations
decarbonization lever. These GHG emissions account for less than 2% of the adidas corporate footprint and
therefore do not represent a material risk to the achievement of our climate strategy targets. Please refer
to the following section on the progress of our actions:
►SEE ESRS E1-3 – ACTIONS AND RESOURCES IN RELATION TO CLIMATE CHANGE POLICIES
Impact, risk and opportunity management
E1-2 – Policies related to climate change mitigation and adaptation
Climate Strategy
(EE, RE, CCM, CCA)
Provides a long-term vision and overview on our
GHG emissions and plans to meet SBTi targets.
Entire value chain
SVP Sustainability
and ESG
GHG Protocol
SBTi
Available for all
employees
adidas Climate Transition
Action Plan
(EE, RE, CCM, CCA)
A strategic roadmap that sets out how adidas
aims to reduce greenhouse gas emissions across
our value chain in line with the 1.5°C pathway
and achieve net-zero by 2050.
Entire value chain
SVP Sustainability
and ESG
GHG Protocol
SBTi
Accessible on
corporate website
Global Energy Policy
(RE, CCM)
Sets energy and renewable energy purchasing
standards across all facilities operated by
adidas.
Own operations
Executive Board
member Global
Human Resources,
People and Culture
RE100 Technical
Criteria
n.a.
Available for all
employees
Integrated Management
System Global Policy
(EE)
Sets standards for adidas entities worldwide to
manage operations in a safe, healthy, energy-
efficient and environmentally responsible
manner and continuously improve practices. In
the context of climate, adidas specifically has
an Environmental and Energy Management
System in line with ISO standards in place.
Own operations
Executive Board
member Global
Human Resources,
People and Culture
ISO 14001, ISO
45001, ISO 50001
n.a.
Available for all
employees
E1-2 – Policies related to climate change
Policies1
Content
Scope
Senior level
responsible
Third-party
standards/
initiatives
Stakeholder
consideration
Availability
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Rooftop Solar Guideline
(RE, CCM, CCA)
Supports suppliers in transition toward
renewable energy solutions and gives practical
guidance.
Upstream
(Tier 1 and Tier 2
suppliers)
SVP Product
Development &
Sourcing
RE100 Technical
Criteria; and
relevant policies
adidas suppliers
Available on
supplier SharePoint
Coal Replacement Guideline
(RE, CCM, CCA)
Supports suppliers to replace coal as an energy
source, showing alternatives and giving practical
guidance.
Upstream
(Tier 1 and Tier 2
suppliers)
SVP Product
Development &
Sourcing
UNFCCC Fashion
Charter; Sustainable
Biomass Guidelines
adidas suppliers
Available on
supplier SharePoint
Environmental Guidelines
(EE, CCM)
Describes ways to prevent pollution, manage
and control environmental impacts, and avoid
depletion of natural resources; includes
sustainable resource use.
Upstream
(Tier 1 and Tier 2
suppliers)
SVP Product
Development &
Sourcing
RE100 Technical
Criteria;
and relevant
policies
adidas suppliers
Accessible on
corporate website
Supplier Manifesto
(RE, CMM, CMA)
Sets expectations toward our suppliers regarding
GHG emissions reduction (Tier 1 and 2
suppliers).
Upstream
(Tier 1 and Tier 2
suppliers)
SVP Product
Development &
Sourcing
n.a.
adidas suppliers
and external experts
Directly shared with
suppliers
Renewable Energy Transition
and Energy Attribute
Certificates Guideline
(RE, CCM, CCA)
Gives guidance on the transition to effective
renewable energy and the use of energy attribute
certificates.
Upstream
(Tier 1 and Tier 2
suppliers)
SVP Product
Development &
Sourcing
RE100 Technical
Criteria; and
relevant policies
adidas suppliers
Available on
supplier SharePoint
1 Material matters addressed by policies and guidelines are abbreviated as follows:
EE – Energy Efficiency
RE – Renewable Energy
CCM – Climate Change Mitigation
CCA – Climate Change Adaptation
E1-2 – Policies related to climate change
Policies1
Content
Scope
Senior level
responsible
Third-party
standards/
initiatives
Stakeholder
consideration
Availability
E1-3 – Actions and resources in relation to climate change policies
Our actions and measures that are guided by our climate change policies aim to address all identified
material impacts, risks, and opportunities, such as improving our management of energy, reducing GHG
emissions, mitigating our negative climate impacts, and adapting to climate-related risks as described in
SBM-3 Resilience Analysis Table. Stakeholders affected are mainly our upstream suppliers and internal
business areas. If not indicated otherwise, all actions mentioned are intended to be ongoing without a set
completion date.
The levers presented in our climate strategy aim to reduce GHG emissions in the near term and lay the
foundation for achieving our ambition to become net-zero by 2050. In this regard, we recognize the need for
continuous innovation, cross-industry collaboration, and policy support.
Climate and financial impacts are integrated into adidas’ budgeting and financial planning processes.
Initiatives within our operational control are first evaluated for feasibility, environmental benefits, and
financial impacts before funding requirements are incorporated into the annual budgeting cycle. For Scope
3, we are working with industry peers and sector initiatives to explore financing and incentive models that
can support decarbonization across the supply chain.
Scope 1 and 2 GHG emissions related actions
─Data coverage: In 2025, we increased primary energy data coverage for our own retail sites by two
percentage points compared to the previous year, reaching 45% globally. Data coverage for
administrative offices and distribution centers is 100%, while data for showrooms and smaller offices
was estimated.
─Renewable energy and energy efficiency: At our own sites, we continuously increase the share of
renewable electricity. In 2025, we expanded our on-site solar PV at the distribution center in Colón and
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implemented efficiency upgrades across regions, as well as secured on-site Power Purchase Agreements
(PPAs) for our Herzogenaurach headquarters and the e-commerce Fulfillment Center (EFC) in Rieste. Our
European Virtual Power Purchase Agreement (VPPA) project became operational in 2025, resulting in a
23% reduction in absolute emissions across our European operations for the year. The North American
VPPA is scheduled to become operational in 2026.
─Environmental risk assessment: We carry out environmental risk and opportunity assessments for our
facilities (by 2025, 317 facilities were covered by ISO 50001 and 75 facilities were covered by ISO
14001) to identify improvement opportunities and, at an early stage, any potential risks which could
affect our ability to meet our GHG emissions reduction targets.
Scope 3 GHG emissions related actions
─Renewable energy (RE) and energy efficiency (EE): We collaborate with our key Tier 1 and Tier 2 suppliers
to adopt energy-efficient equipment and processes. Our Environmental Good Practices Guidelines (EGPG)
provide a comprehensive list of best practices for reducing energy use. We encourage suppliers to
periodically conduct energy audits, identify energy-reduction initiatives, and implement them. Our
suppliers are also asked to scale up the use of electricity from RE sources and move toward our
aspirational goal of maximizing RE usage, wherever possible, by 2030. During 2025, suppliers
participating in our environmental program sourced 26.4% of their electricity from renewable sources
through on-site electricity generation and/or procurement via PPAs, as well as high-quality Energy
Attribute Certificates (EACs) where sourcing or scaling up of electricity from rooftop solar and/or RE PPAs
was not possible/limited. 8% of the electricity used by our key suppliers is sourced from rooftop solar PV
systems, with the majority of our suppliers having maximized the viable potential of rooftop solar PV
electricity generation within existing policy constraints. In many of our sourcing countries, governments
have initiated targeted policies to transition their national power grids toward renewable sources. The
steady – albeit slow – progress on the path to greening the grids will provide additional, external tailwind
for our supplier base to increase the usage of RE.
─Coal phase-out: Coal-based thermal energy remains a material source of Scope 3 emissions in the
manufacturing of adidas products. In line with our Climate Transition Action Plan, adidas implemented a
dedicated coal phase-out program with Tier 1 and Tier 2 suppliers to replace coal-fuelled boilers with
lower-carbon energy solutions, such as biomass or natural gas, wherever feasible. By the end of 2025,
most of targeted supplier sites had either completed the transition or were exited from the supply base,
making this a key driver of product carbon-intensity reduction.
─Process improvement and innovation: Developing and scaling innovative solutions in material processing,
manufacturing, and product assembly can help adidas reduce its GHG emissions. Through our innovation
team, we scout, pilot, and explore the scaling of such innovations as part of our climate strategy.
─Material innovation: Scaling the use of low-carbon materials. The materials we use in our products are a
key contributor to our carbon footprint. This impact is mainly attributable to the use of five materials:
(animal) leather, recycled polyester, ethylene-vinyl acetate (EVA), cotton, and rubber. In 2025, we
continued our efforts to evaluate low-carbon material alternatives, including recycled and bio-based
options. As part of this commitment, we have made significant progress in transitioning from virgin
polyester, with 99% of all polyester – our most widely used material – sourced from recycled polyester
since 2023.
►SEE ESRS E5-3 – TARGETS RELATED TO RESOURCE USE AND CIRCULAR ECONOMY ►SEE ESRS E5-4 – RESOURCE INFLOWS
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─Other levers:
▪Inbound transportation: Most of our transportation is by sea and truck, and only a very small
proportion is by air freight (2% in 2025). We recognize the role that biofuels and alternative fuels could
play in reducing emissions from maritime transport. Therefore, in 2025, we began exploring with our
logistics partners the feasibility, benefits, and constraints of a progressive transition. We also focus
on continuously improving our planning and go-to-market capabilities to minimize the use of air freight
for delivering products.
▪Packaging: Although packaging accounts for only a small proportion of our GHG emissions, we focus
on using more recycled and sustainably sourced renewable materials,26 while optimizing box sizes and
the number of shipments. In 2025, 85% of our primary cardboard packaging was recycled, while 98%
of our polybags were made of recycled plastic.
Industry collaboration-related actions
─Suppliers’ SBTi targets: We regularly engage with various industry experts and provide assistance to our
key suppliers to establish their SBTi targets. In 2025, we completed the delivery of the SBTi upskilling
program for our suppliers, providing them with the skills needed to identify and quantify their Scope 1, 2,
and 3 GHG emissions and to build roadmaps for reducing these emissions.
─Advocacy and industrial engagement: adidas collaborates with industry associations and organizations to
support government policies that accelerate the energy transition, including those related to PPAs and
rooftop solar projects. We are part of several organizations that promote lower-carbon processes and
renewable energy in sourcing countries and across the industry. adidas is a member of the UNFCCC
Fashion Industry Charter for Climate Action Steering Committee and the Fashion Pact, both focused on
enabling suppliers to adopt renewable energy and advocating for stronger energy policies. We are also a
member of Fashion for Good (FFG) to help identify and scale innovations in materials and production
processes for the industry. As a member and ESG Committee chair of the World Federation of the
Sporting Goods Industry (WFSGI), adidas helps shape the WFSGI decarbonization strategy and roadmap,
supporting the industry’s collective decarbonization efforts.
─Circular business models: adidas supports the ecosystem and different organizations to set up the
necessary infrastructure to enable circular business models, extend the life cycle of products, and aim to
reduce GHG emissions at end-of-life. We will continue refining our approach and identifying relevant
actions to be implemented across our entire value chain operations.
►SEE ESRS E5 – RESOURCE USE AND CIRCULAR ECONOMY
─Advocacy and ‘just transition’: We are committed to contributing to a net-zero future by creating pathways
that are inclusive, equitable, and just. This means empowering communities, protecting workers' rights,
and fostering sustainable opportunities (a ‘just transition’). To achieve this, we collaborate with a range
of external stakeholders, including athletes, sports organizations, and civil society partners, to support
community-based initiatives that strengthen resilience and promote sustainability through sport.
─Move For The Planet: This global initiative is focused on sustainability education through sport and on
improving places where we play sports. Its goal was to encourage adidas’ stakeholders to sign up for the
Move For The Planet challenge and turn collective movement into collective impact for local communities.
As a result of the 2025 activation, more than 2.8 million participants worldwide tracked almost 735
million minutes of movement on the adidas Running app and STRAVA. adidas pledged to donate € 1 to
its partner organizations Common Goal and United Nations Climate Change for every ten minutes of
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26 Textile Exchange refers to these as fibers produced from renewable resources, such as plants or agricultural waste, using practices that minimize
environmental impact throughout the lifecycle.
movement logged – up to € 1.5 million. The funds support projects that provide education on
sustainability through sport and help make sports facilities more resilient against extreme weather
conditions, such as heat waves and flooding.
─Data and transparency-related actions
─Product footprint calculation: Data and transparency are critical enablers for translating our climate
strategy into measurable action. Decisions made during product design and development have a
significant influence on environmental impact and our carbon footprint. We use an in-house tool to
measure the environmental footprint, including GHG emissions, of our footwear and apparel products.
Aligned with ISO 14067:2018 and independently verified, this tool is integrated into our product creation
systems to enhance speed, accuracy, and decision-making. It also supports key accounts and partners
by providing product-level data for Scope 3 emissions reporting, fostering shared accountability for
reducing impact.
─Data accuracy: We collaborate with our suppliers to gather primary data on fuel consumption, electricity
use and its sources, water, waste, chemicals, and other inputs to track their progress on our
sustainability and decarbonization initiatives. We drive better data accuracy by providing our suppliers
with clear guidance and making them accountable for timely and accurate reporting. We also engage with
third-party assessors to verify that these data are documented in line with the defined standards.
Metrics and targets
E1-4 – Targets related to climate change mitigation and adaptation
For setting our climate strategy targets, we follow the SBTi guidance to be aligned with the 1.5°C pathway.
Accordingly, offsets and avoided emissions do not count toward our science-based targets. In addition, the
following assumptions were applied:
─We calculated the absolute reduction needed based on a defined business growth assumption and
corresponding production forecasts (aligned with the business growth assumptions used in the already
presented scenario analysis).
─We made assumptions on how our main sourcing countries will evolve in the coming years,
supplemented by insights derived from a third-party study on the development of the energy grid.
We also consulted suppliers to validate our climate strategy as well as to increase their commitments and
engagement. We monitor the effectiveness of these actions by tracking and reporting applicable
milestones.
In addition to mitigation, we implement ongoing adaptation measures that address physical climate risks,
as outlined in the SBM-3 Resilience Analysis table. While adidas has not set specific adaptation targets,
these measures contribute to strengthening resilience across our operations and supply chain.
For further details on our GHG emissions accounting and target-setting approach:
►SEE ESRS E1-6 – GROSS SCOPE 1, 2, 3, AND TOTAL GHG EMISSIONS
For a detailed description of our climate strategy levers and actions
►SEE ESRS E1-1 – TRANSITION PLAN FOR CLIMATE CHANGE MITIGATION ►SEE ESRS E1-3 – ACTIONS AND RESOURCES IN RELATION TO CLIMATE
CHANGE POLICIES
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Scope
Climate strategy
targets1, 2, 3
Scope 1 and 2 GHG
emissions
(in tons CO2e)
By 2030, reduction of
70% from the 2022
baseline
127,983
135,814
164,149
(22%)
Scope 3 GHG
emissions
(in tons CO2e)
By 2030, reduction of
42% from the 2022
baseline
6,236,869
5,248,523
6,578,270
(5%)
Scope 1 to 3 GHG
emissions per product
('carbon intensity’; in kg
CO2e)5
By 2025, reduction of 9%
from the 2022 baseline
5.87
6.11
6.45
(9%)
Scope 1 to 3 GHG
emissions
(in tons CO2e)
By 2050, achieve net-
zero GHG emissions
across our value chain6
6,364,851
5,384,337
6,742,419
(6%)
1 GHG emission reduction targets, including Scope 2 GHG emissions, use market-based emissions.
2 GHG emission reduction targets, including Scope 3 GHG emissions, have a target boundary that includes biogenic emissions and removals from bioenergy feedstocks.
3 In line with SBTi, emissions from Category 3.11 ‘Use of sold products’ are excluded from our near- and long-term reduction targets.
4 2022 was selected as the baseline year as it reflects typical operating conditions, with no material anomalies affecting emissions or production.
5 Refers to products produced.
6 In line with the SBTi criteria, we aim to achieve net-zero by cutting all our possible GHG emissions (by more than 90% against the baseline year 2022) through direct
GHG emission reduction actions and neutralizing the residual GHG emissions through permanent carbon removal and storage.
E1-4 – Targets related to climate change mitigation and adaptation
2025
2024
Baseline4
Change vs.
baseline
We met our 2025 target and achieved a 9% reduction in Scope 1-3 product carbon intensity (baseline
2022). This outcome is driven by the implementation of decarbonization measures across the value chain
and our ongoing effort to decouple emissions intensity from business growth.
Progress during the year was supported by delivery against key mitigation levers, including significant
advances in phasing out coal from our suppliers, where feasible, increasing the use of renewable electricity
across our own operations and supply chain, and continuing to scale lower-carbon materials.
adidas remains committed to advancing its climate change mitigation actions and long-term
decarbonization ambition. The company will monitor evolving market, technological, and regulatory
developments along the entire value chain to support measurable progress and ensure our transition
approach remains informed and responsive over time.
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E1-5 – Energy consumption and mix
Fossil energy source
Fossil electricity
202,263
244,741
291,377
Natural gas
66,612
63,993
59,834
Heating oil
4,292
4,322
4,391
Diesel (emergency generator)
264
360
371
District heating
9,419
25,655
26,652
Diesel (company vehicles)
9,320
10,434
16,034
Gasoline/petrol (company vehicles
14,375
15,179
16,503
Nuclear sources3
17,904
40,529
—
Total fossil energy consumption
324,449
405,213
415,162
(22%)
Renewable energy source
Wood chips for combustion (heating)
41
43
38
Green electricity bundled
5,876
5,296
65,226
Green electricity from VPPAs
32,612
—
—
Green electricity unbundled
115,216
77,575
11,388
Green gas
—
—
10,327
Green district heating
18,934
—
—
On-site solar PV consumption from self-generation
11,158
9,152
8,398
Total renewable energy consumption
183,837
92,066
95,377
93%
Total energy consumption
508,286
497,278
510,539
(0.4%)
1 Energy consumption is determined in accordance with the Lower Heating Value (LHV) of the fuel, as specified in IPCC Guidelines, Annex II.
2 2022 was selected as the baseline year as it reflects typical operating conditions, with no material anomalies affecting emissions or production.
3 Data on nuclear sources is measured from 2024 onward.
E1-5 – Energy consumption1 in our own operations (MWh)
2025
2024
Baseline2
Change vs.
baseline
Through solar PV plants on our facilities’ rooftops, we produced a total of 15,751 MWh of electricity in
2025 (2024: 13,683 MWh). Of this amount, 11,158 MWh were directly used by our own sites (2024:
9,152 MWh), and 4,593 MWh were supplied into the public power grid (2024: 4,530 MWh).
adidas is part of the high-climate-impact sectors of ‘manufacturing’ (textile and apparel, leather, and
footwear products) and ‘wholesale and retail trade.’ While we do not have significant own manufacturing
activities, our business model is based on the sourcing, distribution, and selling of finished goods produced
by independent, third-party suppliers. In that regard, the net revenue related to high-climate-impact sector
activities is equal to our net sales presented in the consolidated income statement.
2025
2024
Change
Energy intensity per net revenue (MWh per million in €)
20.5
21.0
(2%)
1 Net revenue represented by adidas net sales (2025: € 24,811 million).
Energy intensity per net revenue1
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E1-6 – Gross Scope 1, 2, 3 and total GHG emissions
Scope 1 emissions (in tons
CO2e)
20,839
20,844
—%
21,856
Scope 2 emissions, market-
based (in tons CO2e)
107,143
114,970
(7%)
142,293
Administrative offices
13,843
21,301
(35%)
13,354
Distribution centers
5,222
18,994
(73%)
21,647
Own retail stores
87,432
72,890
20%
104,480
Showrooms
646
1,785
(64%)
2,812
Scope 2 emissions, location-
based (in tons CO2e)
166,752
164,079
2%
164,400
Administrative offices
25,461
25,069
2%
24,005
Distribution centers
25,752
25,911
(1%)
28,614
Own retail stores
114,021
111,287
2%
108,885
Showrooms
1,518
1,812
(16%)
2,896
Scope 1 and 2 emissions,
market-based (in tons CO2e)
127,983
135,814
(6%)
164,149
(22%)
(70%)
(9%)
Scope 1 and 2 emissions,
location-based (in tons CO2e)
187,591
184,923
1%
186,256
Scope 3 emissions (in tons
CO2e)
6,236,869 5,248,523
19%
6,578,269
(5%)
(42%)
(5%)
Purchased goods and services
5,618,143 4,710,261
19%
6,041,553
Upstream transportation and
distribution
383,810
316,684
21%
343,556
Business travel
63,092
66,332
(5%)
36,158
Use of sold products2
1,128,317
994,948
13%
1,057,515
End-of-life treatment of sold
products
171,823
155,246
11%
157,002
Total emissions without use
of sold products (market-
based in tons CO2e)
6,364,851 5,384,337
18%
6,742,418
(6%)
Net-zero3
(3%)4
Total emissions without use
of sold products (location-
based in tons CO2e)
6,424,460 5,433,446
18%
—
Carbon intensity (in kg CO2e)5
5.87
6.11
(3.9%)
6.45
(9%)
(9%)
(3%)
1 Details are provided in the explanatory notes to our reported gross Scope 1, 2, 3 and total GHG emissions.
2 In line with SBTi, emissions from Category 3.11 ‘Use of sold products’ are excluded from our near- and long-term reduction targets.
3 In line with the SBTi criteria, we aim to achieve net-zero by cutting all our possible GHG emissions (by more than 90%) through direct GHG emission reduction actions and neutralizing the
residual GHG emissions through permanent carbon removal and storage.
4 Assumes a cut of all our possible GHG emissions (by more than 90% against the baseline year 2022) through direct reduction actions before neutralizing the residual GHG emissions.
5 Total emissions (market-based) per product produced.
E1-6 – Gross Scope 1, 2, 3 and total GHG emissions1
Retrospective
Milestones and climate strategy target years
2025
2024
Change
Baseline
Change vs.
baseline
2025
2030
2050
Annual %
target/
baseline
year
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Explanatory notes to our reported gross Scope 1, 2, 3 and total GHG emissions
Our GHG emissions are reported in alignment with the methodologies provided by the GHG Protocol and
the requirements laid out by ESRS E1-6.
─In the reporting year, there were no significant changes in connection with our value chain or scope of
consolidation that would result in a change to the methodology used to present past progress in
meeting our climate strategy targets.
►SEE ESRS E1-1 – TRANSITION PLAN FOR CLIMATE CHANGE MITIGATION
─Scope 1 and 2 GHG emissions relate to our own operations including administrative offices,
distribution centers, production sites, and own retail stores. The emissions are calculated based on
78% of reported environmental quantities (primary data) in our own operations’ the Health and Safety,
Environment, and Energy (HSEE) data collection systems. The calculation for the remaining 22% uses
estimations by scaling up the primary data collected at the facility or site level to a company-wide level
on the basis of gross lease area (in m3). In 2025, our market-based electricity emissions were
accounted through the use of contractual instruments. The share of purchased or acquired electricity
compared to the overall electricity was as follows: 2% for green tariffs, 31% for unbundled energy
attribute certificates, and 9% for VPPA in Europe. In addition, we apply emission factors from different
sources in our calculation. For Scope 1 GHG emissions, we use emission factors published by the GHG
Protocol, for Scope 2, we use emission factors from the International Energy Agency (IEA) related to
emissions from electricity, and from the Department for Environment, Food and Rural Affairs (DEFRA)
related to emissions from district heating.
─Scope 3 GHG emissions relate to certain upstream and downstream value chain categories, which are
significant due to their magnitude (see below). Wherever available, adidas uses primary data in the
calculations (examples of primary data used include the annual material consumption, annual sales
volumes, energy consumption of key suppliers, and shipping data for inbound logistics). Collected
primary data are complemented by and matched with life cycle assessment (LCA) data in a tool
specifically developed for calculating GHG emissions. In addition, emission factors from different
sources are used such as DEFRA, IEA and the Product Environmental Footprint Category Rules (PEFCR).
─Scope 3 GHG emissions include the following significant categories:
▪Purchased goods and services: This category considers the production and processing of raw
materials, for which impacts are estimated based on quantities of materials and life-cycle analysis
data. The reporting-year values cover production seasons SS25 and FW25. All key production
processes are factored in. Primary, secondary, and tertiary packaging-material quantities are also
included. The quantities are estimated based on sales volumes, using composition and weight
assumptions from the PEFCR. Furthermore, this category also considers the assembly phase, for
which impacts are estimated by applying emission factors to reported energy consumption from Tier
1 strategic suppliers. Sourcing volume data is used to estimate the impact of non-strategic suppliers
(< 20%).
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▪Upstream transportation and distribution: This category considers inbound and outbound
transportation of products. For calculating GHG emissions, quantities of shipped products for
specified distribution routes are combined with transport emission factors.
▪Business travel: This category includes emissions from air travel by adidas employees. Emission
calculations are based on the business-travel data system.
▪Use of sold products: This category relates to emissions caused by washing, drying, and ironing of
sold products throughout their lifetime. The calculation is based on average care-cycle data from
PEFCR and life-cycle analysis datasets. In line with our SBTi-validated targets, we exclude Scope 3
GHG emissions from the use of sold products in our total (Scope 1-3) GHG emissions calculation.
▪End-of-life treatment of sold products: This category relates to emissions caused by the disposal of
sold products, and the calculation uses estimates based on sales volumes and typical waste
disposal routes (e.g., landfill and incineration).
─Scope 3 GHG emissions related to the following categories are considered insignificant for adidas
based on their estimated magnitude and/or other GHG Protocol and ISO criteria. Accordingly, these
categories are excluded from the reported data: Capital goods, Fuel- and energy-related activities,
Waste generated in operations, Employee commuting, Upstream leased assets, Downstream
transportation, Processing of sold products, Downstream leased assets, Franchises, and Investments.
─The percentage of Scope 3 emissions calculated using primary data is determined based on the share
of emissions for which adidas uses company- or supplier-specific activity data, such as material
consumption, energy consumption, transport weights, travel activity, and sales volumes. Where such
activity data is combined with emission factors from LCA databases, adidas distinguishes between the
origin of activity data and the source of emission factors: the activity data is classified as primary, while
the emission factors are treated as secondary inputs used to convert activity data into CO₂e emissions.
The resulting emission figures from this combination are classified as being calculated from ‘primary
data’. In categories where both primary and secondary activity data are used, conservative weighting
assumptions are applied. Applying this approach results in 85.5% of Scope 3 emissions being
calculated using primary data.
─adidas has no Scope 1 GHG emissions related to regulated emissions-trading schemes.
─adidas discloses Scope 1 and 2 GHG emissions related to the financial reporting scope as outlined in
Principles of Consolidation Note 02 in this report. GHG Emissions as described in ESRS E1-6 50.b do
not apply.
►SEE NOTE 02
─Biogenic emissions in Scope 1-3 are not reported separately due to immateriality.
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2025
2024
Change
GHG emissions intensity per net revenue
(tons CO2e per million in €)
257
227
13%
1 Net revenue represented by adidas net sales (2025: € 24,811 million)
GHG emissions intensity per net revenue1
E1-7 – GHG removals and GHG mitigation projects financed through carbon credits
adidas has no GHG removal or storage initiatives in place and does not plan to implement any in the mid-
term future. In addition, adidas neither purchases nor plans to purchase carbon credits in the foreseeable
future to support its climate strategy or to account for them in its GHG emission calculation.
Our climate strategy details our actions and targets to reduce future GHG emissions, which are aligned with
the 1.5°C pathway and contribute to a net-zero future. As per the SBTi guideline, we will only consider the
purchase and retirement of carbon credits in the long term (including the applicable methodology and
framework) to neutralize any potential residual GHG emissions for which reduction actions are not viable
(with a maximum of 10% against the baseline year 2022).
E1-8 – Internal carbon pricing
In order to achieve the targets of the adidas climate strategy, the various measures and actions presented
earlier are driven along milestones with clearly defined accountabilities. Progress against these milestones
is monitored, tracked, and reported regularly to ensure the timely and effective execution. Moreover,
embedding the carbon intensity target into the Executive Board’s LTIP serves as an additional steering
instrument to ensure that the impact on our climate strategy is a relevant factor in our decision-making
(e.g., material selection, investment in renewable energy). We are confident that this approach is sufficient
for implementing the needed actions. Accordingly, we do not consider the introduction of an internal carbon-
pricing scheme to add value to the execution of the adidas climate strategy at this point in time.
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Pollution
Substances of concern, pollutants from agriculture and production, and microfiber shedding can have
adverse effects on the environment. At the same time, regulatory expectations and demand for
transparency around chemical use in the supply chain continue to grow. To minimize negative impacts and
address evolving market expectations, we work closely with our suppliers and industry partners to advance
responsible water and chemical management practices.
Targets
adidas targets focus on preventing and minimizing water pollution and the use of substances of concern
by our Tier 1 and Tier 2 suppliers.
Quality of wastewater discharge
Chemical input management
90%
2025 target achieved
2025 result
75%
2025 target
80%
The target was designed to improve the
quality of wastewater from selected Tier 1
and Tier 2 suppliers, by achieving recognized
industry standards.
The target focused on eliminating the use of
restricted substances in our supply chain by
increasing the use of alternative chemicals
that meet the highest conformance level
according to ZDHC MRSL Standard.1
(Metric based on number of facilities.)
(Metric based on number of chemical formulations.)
1 ZDHC – Zero Discharge of Hazardous Chemicals group.
Key metrics and actions
The actions we take are designed to prevent and minimize pollution, avoid the depletion of natural
resources, and further minimize the impacts of our suppliers in the upstream value chain.
Quality of wastewater
Chemical input
Microfiber
─Bi-annual compliance
checks and reporting
from suppliers
─Support to suppliers to
drive continuous
improvement
─Public disclosure of
quality performance on
third-party platform
─Robust chemical
management from
input to final product
─Monthly data reporting
and monitoring on
chemical usage in
production
─Annual onsite
verification checks
─Collaboration with
industry and academic
institutions to advance
test methods
─Industry initiative to
develop standardized
protocols to measure
microfiber release
Industry engagement
We collaborate with industry organizations, such as the ZDHC Group and the Leather Working Group,
to promote responsible water and chemical management in textile facilities and tanneries. For the
third consecutive year, we achieved the Champion Level in the ZDHC ‘Brands to Zero’ program.
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ACHIEVED
ESRS 2 – General disclosures
SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and
business model
Pollution
of water
Negative
impact
Actual
n.a.
Upstream
Upstream impacts on water happen either during agricultural or production processes. In agricultural
processes, the impact comes mainly from the use of chemicals that can compromise the quality of fresh
water. In production processes, the impact is mainly present during the dyeing and tanning phases, as
these are water-intensive processes and lead to potential discharge of chemicals.
Substances
of concern
Negative
impact
Actual
n.a.
Upstream
Multiple chemicals used in our production (Tier 1, Tier 2 and raw material production) are classified as
substances of concern. They are difficult to substitute in our industry, as alternatives either do not exist
or are costly and/or difficult to obtain and manage. The use of substances of concern leads to adverse
impacts on the environment.
Substances
of concern
Risk
n.a.
Long-term
Upstream
For adidas, the risk associated with the use of substances of concern could be related to:
─Stricter regulations, either in sourcing or importing countries, potentially leading to higher operating
costs for suppliers and/or market accessibility challenges.
─Increased requirements for traceability and transparency of substances of concern throughout the
supply chain, leading to higher operating costs for adidas.
Microplastics
Negative
impact
Actual
n.a.
Upstream and
downstream
Microfibers are generated during the production and use phase of adidas products. Due to the lack of a
holistic methodology in the textile industry, it remains difficult to define the exact extent and nature of
the impact.
SBM-3 – Pollution and material impacts, risks and opportunities (IROs)
Material matter
Material IRO
Classification
Time horizon
Value chain
Description
Impact, risk and opportunity management
E2-1 – Policies related to pollution
Environmental Guidelines
(P, S)
Describes ways to prevent pollution, manage
and control environmental impacts, and avoid
depletion of natural resources; includes
wastewater and chemical management and
adidas restricted substances.
Upstream
(Tier 1 and
Tier 2 suppliers)
SVP Product
Development &
Sourcing
ZDHC Wastewater
Guidelines and
ZDHC Chemical
Management System
Technical Guide,
ZDHC MRSL, ISO
14001
ZDHC and adidas
suppliers
Accessible on
corporate website
Policy for the Control and
Monitoring of Hazardous
Substances (AO1)
(S)
Prohibits the use of chemicals considered
harmful or toxic and includes the restrictions of
using animal-derived materials.
Upstream
(Tier 1 and
Tier 2 suppliers)
SVP Product
Development &
Sourcing, General
Counsel
WFSGI, IUCN, ILO,
AFIRM
External
stakeholders
(NGOs), legislation,
and consumers
expectations
Accessible on
corporate website
1 Material matters addressed by policies and guidelines are abbreviated as follows:
P – Pollution of Water
S – Substances of Concern
2 Explanation of acronyms for third-party standards and initiatives:
ZDHC – Zero Discharge of Hazardous Chemicals Group
WFSGI – World Federation of the Sporting Goods Industry
IUCN – International Union for Conservation of Nature
ILO – International Labour Organization
AFIRM – Apparel and Footwear International RSL Management
E2-1 – Policies related to pollution
Policies1
Content
Scope
Senior level
responsible
Third-party
standards/
initiatives2
Stakeholder
consideration
Availability
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adidas Environmental Guidelines
adidas commits to reducing the environmental impacts of our upstream manufacturing activities. Our
policies and guidelines lay out business practices that apply to our suppliers, with whom we closely partner
and to whom we provide training for continuous improvement. We set clear expectations for our suppliers
regarding the management of pollution-related impacts across water, air, and soil. First, our suppliers as
well as their partners should adhere to the respective local regulations and legal requirements, at a
minimum. adidas always aims to adopt the industry standard if it is stricter than local regulations. Second,
our suppliers must adhere to the adidas Environmental Guidelines, which have been developed to minimize
and mitigate environmental impacts. The adidas Environmental Guidelines draw on good industry practices
and provide guidance on preventing pollution. They also establish environmental and chemical management
systems, including the handling of substances of (high) concern. Our approach prioritizes the proactive
prevention of pollution incidents and lays out guardrails to minimize the impact of emergencies if they
occur.
To ensure compliance with our guidelines and policies, our suppliers are required to conduct audits and
assessments (managed by third-party verifiers) on a yearly basis. Any facilities that fail to meet our
expectations must immediately follow the mitigation process defined in the adidas Workplace Standards
and the Remediation Guide and take action to address any adverse impact. In addition, we encourage our
suppliers to develop pollution prevention strategies. Our regional teams track and monitor our suppliers’
environmental performance through monthly reporting into the adidas data-collection platform.
►SEE ESRS E2-3 – TARGETS RELATED TO POLLUTION
Control and monitoring of hazardous substances in our supply chain and products
adidas is highly committed to responsible chemical management across its global supply chain, taking an
end-to-end approach to eliminate any restricted substances used in production. As a founding member of
the Zero Discharge of Hazardous Chemicals (ZDHC) Foundation, we have been actively supporting the
development of industry standards on chemical management and wider policy requirements since 2011.
Our engagement includes promoting standardized measurement across the apparel and footwear industry
by developing and implementing a commonly accepted testing methodology and related acceptable
thresholds, as well as setting strict industry requirements that go beyond legal mandates. Since 2015,
adidas has adopted the ZDHC MRSL (Manufacturing Restricted Substances List) industry standard, which
outlines the chemical substances prohibited from any intentional use in the processing of textiles, leather,
rubber, foam, adhesives, and trims. adidas additionally uses its own comprehensive restricted substance
policy in products – the adidas Policy for the Control and Monitoring of Hazardous Substances27 to avoid
and control the use of any restricted substances, such as APEO, PFAS etc., in its products and to ensure
consumer safety, going beyond the legal requirements.
This dual approach also reinforces adidas’ commitment to PFAS-free production, in response to growing
awareness and regulation around the environmental and health impacts of perfluorinated compounds
(PFCs). We continue to enhance product performance while collaborating with industry partners to identify
and implement safer alternatives.
Other guidelines
To monitor wastewater effluent (chemical output management), we apply the ZDHC Wastewater Guidelines
Version 2.2 which establishes a unified approach to wastewater parameters and limits. These guidelines
ensure a high standard of wastewater quality treatment, minimizing environmental harm when wastewater
is discharged from suppliers’ facilities. We collaborate with the ZDHC Foundation to drive industry
engagement to improve the wastewater quality standards beyond legal requirements.
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27 Restricted substances list can be found on our website. ►ADIDAS-GROUP.COM/SUSTAINABILITY/POLICIES
End-to-end chemical management requires not only controlling inputs and outputs, but also oversight during
production processes, where pollution incidents can occur through chemical leaks or emissions. To
mitigate these risks, adidas expects suppliers to implement comprehensive environmental, health and
safety (EHS) management systems as well as continual risk management and remediation measures.
These expectations are laid out in our adidas Environmental Guidelines, the ZDHC Chemical Management
System Technical Guide and our Health and Safety Guidelines.
►SEE ESRS S2-1 – POLICIES RELATED TO VALUE CHAIN WORKERS
By stipulating process control through guidelines, we aim to prevent contamination incidents and uphold
the chemical safety standards throughout our supply chain.
Microplastics28 – Microfiber Position Paper
adidas recognizes that the release of microplastics – also referred to as microfiber shedding or fiber
fragmentation – during production, consumer use, and end-of-life is a multidimensional environmental
challenge. Scientific research29 shows that both synthetic and natural fibers shed, and that biodegradability
does not eliminate environmental risk. A holistic and standardized approach is essential to accurately
quantify the release of microfibers and assess its environmental impact. However, the industry currently
lacks a comprehensive, reliable, and scalable methodology for the different stages of the value chain,
hindering effective action. Over the past few years, adidas has actively partnered with different industry
experts, including The Microfibre Consortium (TMC), the Zero Discharge of Hazardous Chemicals Group
(ZDHC), and Fashion for Good (FFG), to collectively drive progress in microfiber research and testing
development. In addition, the ZDHC Group and TMC have recently partnered to explore practical indicators
of microfiber release from production, based on wastewater metrics.
In 2025, we published the adidas Microfiber Position Paper internally to share our approach to this topic
and to reinforce our commitment to transparency and collective action. adidas is committed to
implementing evidence-based interventions, standardized pollution measurement methodologies, and
fostering industry collaboration across the sector. As research into microfiber shedding continues to evolve,
adidas aims to define a policy, actions, and targets to avoid or minimize microfiber release during
production and provide consumers with clear guidelines for product use and disposal.
E2-2 – Actions and resources related to pollution
As outlined in our adidas Environmental Guidelines, our actions aim to prevent and minimize pollution,
avoid the depletion of natural resources, and further minimize the impacts of our suppliers in the upstream
value chain.
The coordination and monitoring of actions is performed by our Sourcing Sustainability team, which
operates within our key sourcing countries. Unless explicitly described otherwise, all checks, tests, and
verifications of the measures described were carried out by an independent third party for both pollution
prevention and minimization of substances of concern. The majority of actions are reported and monitored
on a monthly basis, with the exception of wastewater testing and annual verification checks. All of the
measures described are designed to be ongoing in order to achieve adidas' targets.
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28 ►OCEANCONSERVANCY.ORG
29 ►MICROFIBRECONSORTIUM.COM
Pollution prevention
In the reporting year, adidas carried out the following actions based on our standard practices:
─We conducted an annual environmental compliance check with 80% of Tier 1 and Tier 2 facilities, based
on sourcing value.30 No critical findings regarding air, water, or soil pollution were identified in the 2025
annual assessments, consistent with the results from 2024.
─To increase environmental transparency and accountability in our supply chain, since 2015 we have
encouraged our suppliers’ facilities located in China to report their water pollution data annually to the
IPE Pollutant Release and Transfer Register (PRTR) platform. In 2025, 85% of our suppliers’ facilities
disclosed their performance metrics on the PRTR platform. We expect that this disclosure will drive
supplier differentiation and showcase each supplier’s individual environmental commitment. Based on
our suppliers’ disclosure in the PRTR, adidas was ranked number one in 2025 in the IPE CITI rating.
─Since 2017, in line with the ZDHC Wastewater Guidelines and the ‘right to know’ principle, we expect our
Tier 2 suppliers (80% of Tier 2 suppliers performing wet processes, based on sourcing value) to test their
wastewater twice a year and to disclose the results on the Institute of Public & Environmental Affairs
(IPE) DETOX platform or the ZDHC Gateway platform. In the event of a noncompliance case, the supplier
is required to address the issue and perform a follow-up audit to confirm the new wastewater quality
results.
─To strengthen wastewater management across our supply chain, we have partnered with service
providers, e.g., ZDHC-approved laboratories and third-party consultants, to guide suppliers in advancing
their wastewater treatment capabilities. Through on-site evaluations and consultations, suppliers receive
tailored guidance to enhance their treatment capabilities and operational practices. This support is
designed to improve the quality of their wastewater, enabling it to be recycled or safely discharged,
surpassing legal requirements. The findings are also shared at our regional supplier summit to foster
knowledge exchange among industry peers. The initiative covers 80% of Tier 1 and Tier 2 suppliers with
wet processing facilities, based on sourcing value.
─We have implemented an effluent treatment plant evaluation initiative to enhance the operation of on-site
effluent plants. This initiative contributed to adidas’ goal of having 90% of its suppliers achieve the ZDHC
Wastewater Foundational Level for their wastewater quality by 2025. Furthermore, it aims at facilitating
suppliers’ continuous improvement in wastewater quality monitoring and control, ensuring environmental
standards are met.
►SEE ESRS E2-3 – TARGETS RELATED TO POLLUTION
─Furthermore, adidas has been a member of the Leather Working Group (LWG) since 2006. The LWG
certification emphasizes responsible water and chemical management in tanneries, particularly through
wastewater treatment practices, aiming to reduce water pollution derived from tanning processes.
Our action to lay the foundation for our future focus:
To drive continuous improvement in minimizing the environmental impact, adidas has reviewed its current
approach to monitoring the water pollutants in its supply chain. Building on our ongoing adoption of the
ZDHC Wastewater Guidelines and in alignment with SBTN’s science-based targets for nature framework, we
are introducing targeted controls for the two common pollutants nitrogen and phosphorus. We have defined
a clear target for our facilities to reach the ZDHC Aspirational Level for both pollutants, reaffirming our
commitment to reducing discharges into bodies of water.
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30 Unless described otherwise, this scope always applies in E2-2 and E2-3 when referring to ‘Tier 1 and Tier 2 suppliers’.
For information on our approach to addressing actual or potential negative impact on affected communities
with regard to water and sanitation, please refer to:
►SEE ESRS S3-3 – PROCESSES TO REMEDIATE NEGATIVE IMPACTS AND CHANNELS FOR AFFECTED COMMUNITIES TO RAISE CONCERNS
Minimization of the use of substances of concern
In the reporting year, adidas carried out the following actions based on our standard practices:
─We continuously take a precautionary approach and monitor the chemical formulations used in our
production to avoid any restricted substances from being intentionally used. We adhere to the latest
version of the ZDHC MRSL for our restricted substances list. Each year, our suppliers (80% of Tier 1 and
Tier 2 suppliers with chemical usage facilities, based on sourcing value) undergo an on-site assessment
focusing in particular on their chemical usage, compliance status, and improvement progress.
─Our Tier 1 and Tier 2 suppliers continued to report on their chemical inventory and consumption on a
monthly basis through a third-party online chemical inventory platform (BV Ecube). We monitor our
chemical profiles monthly to avoid any intentional use of restricted substances and to ensure overall
compliance, environmental protection, and worker safety. Additionally, annual ZDHC MRSL targets are
established at the facility level to promote the adoption of safer chemicals. Their usage performance is
also reviewed monthly.
─We actively engage and collaborate with several industry organizations. This includes our engagement
with the ZDHC Group, which has been externally recognized, and for which we received the Champion
Level in the ZDHC ‘Brands to Zero’ program in 2025.31 This is the third consecutive year that adidas
achieved the highest level in this program, demonstrating our efforts to drive chemical management in
our supplier base and our achievement in avoiding any restricted substances used in our manufacturing
process. Besides our engagement with the ZDHC Group, we actively collaborate with key industry
organizations including the Apparel and Footwear International Restricted Substances Management
Working Group (AFIRM), the International Chemical Secretariat (ChemSec) Business Group, the Better
Cotton Initiative (BCI), and the LWG. Our collective efforts with organizations that shape the
environmental requirements for our raw materials are important to advance chemical management in the
industry and to minimize the use of substances of concern in production processes. For more
information:
►SEE ESRS E4-3 – ACTIONS AND RESOURCES RELATED TO BIODIVERSITY AND ECOSYSTEMS ►SEE ESRS E5-2 – ACTIONS AND RESOURCES RELATED
TO RESOURCE USE AND CIRCULAR ECONOMY
Our action to lay the foundation for our future focus:
In response to evolving requirements, adidas took a decisive step in 2025 to define a clear target for
managing substances of concern in our supply chain. Building on our continued adoption of the ZDHC
MRSL, this target will assist in guiding our facilities to source chemicals that meet the highest level of the
MRSL. As part of this commitment, we have established a target to limit the use of substances of concern
to no more than 5%. We expect this action to reinforce our efforts to reduce environmental and health
impacts associated with chemical use.
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31 Our achievement in implementing the MRSL conformance has been recognized and featured on ZDHC’s official communication channel. ► LINKEDIN.COM
Microfiber approach
In previous years, adidas conducted extensive internal research, using advanced analytical techniques,
such as Fourier Transform Infrared (FTIR) spectroscopy, to distinguish textile-derived particles from
background contamination. These efforts have helped to build a more accurate understanding of fiber
fragmentation. The findings also provided foundational insights to support the development of
methodologies to measure shedding during the consumer use phase.
In the reporting year, adidas carried out the following actions to establish a standardized industry approach
to addressing microfiber pollution:
─To advance industry knowledge and solutions, adidas collaborated with TMC, FFG, and academic
institutions as part of the ‘Behind the Break’ initiative in 2025, exploring fiber fragmentation. Through
this collaboration, adidas contributed research findings and participated in evaluating shedding test
methods focusing on identifying potential root causes associated with the manufacturing process of
various fiber types.
─adidas partnered with TMC and the ZDHC program to launch a twelve-month wastewater study project,
which will be finalized in 2026. adidas plays a key role in the project to contribute a supply chain
perspective and aims to translate conceptual ideas into actionable items. This includes adopting
Dynamic Image Analysis (DIA) to monitor fiber output in effluent streams, with the goal of developing
reliable and standardized microfiber measurement protocols. Since there is currently no universal
standard for testing microfiber in industrial wastewater, the ZDHC uses total suspended solids (TSS) as
a practical indicator of microfiber release. Lower TSS levels in ZDHC wastewater test results reflect the
reduction of microfiber discharge, making TSS a potentially critical metric for evaluating progress.
Metrics and targets
E2-3 – Targets related to pollution
We aim to proactively work with our Tier 1 and Tier 2 suppliers to reduce environmental pollution, including
pollutants to water and chemicals resulting from our manufacturing activities, wherever possible. Our
methods and targets are based on two approaches: Prevention to minimize pollution and regular monitoring
of the improvement progress.
adidas has set two targets to minimize emission into water and use of substances of concern, as well as to
support the objectives of the adidas Environmental Guidelines. Both targets, quality of wastewater
discharge and chemical input management, were developed considering the ZDHC MRSL and Wastewater
Guidelines and are supported by baseline assessments and industry benchmarks. Moreover, suppliers
were involved based on maturity and readiness assessments. Lastly, both targets apply ZDHC guidelines
as their main guiding principle, as they are based on the latest scientific studies of the apparel and
footwear industry. The guidelines are reviewed by the ZDHC Advisory Committee on a regular basis to
ensure they meet the latest industry requirements.
Pollution of water: Quality of wastewater discharge
Our target was for 90% of Tier 1 and Tier 2 suppliers operating on-site effluent plants to attain the ZDHC
Wastewater Foundational Level by the end of 2025, fulfilling both the MRSL and conventional parameters
according to the ZDHC Wastewater Guidelines. The methodology follows the latest ZDHC Wastewater
Guideline (v2.2), which underpins local requirements and sets minimum requirements for testing and
managing wastewater to ensure it is safe for the environment. The requirements cover over 200 indicators,
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including key water pollutants such as heavy metals and hazardous substances regulated under the MRSL
and COD (Chemical Oxygen Demand).
Wastewater testing is conducted twice a year by third-party accredited laboratories, which submit test
reports directly to adidas. Annual targets are also set at the facility level to foster continuous improvement
in wastewater quality. In 2025, through collective efforts from suppliers to make year-on-year progress, we
achieved our annual target with 90% of our Tier 1 and Tier 2 suppliers meeting wastewater quality at or
above the ZDHC Wastewater Foundational Level (2024: 86%).
Substances of concern: Chemical input management
In 2021, we established the measurement framework and implemented a data-collection system to collect
accurate chemical inventory information from our suppliers. This laid the foundation for effective monitoring
and tracking of chemical usage throughout our supply chain. It also enabled us to set up a chemical input
management target for our suppliers. This target is designed to focus on eliminating the use of any
restricted substances in our supply chain by increasing the use of Level 3 chemicals (chemicals that meet
the highest conformance level according to the ZDHC MRSL standard).
Our 2025 target was for 80% of the chemical formulations used in our production (total number of chemical
formulations) to achieve the ZDHC MRSL Level 3 standard. This KPI is based on the total number of
formulations used by Tier 1 and Tier 2 suppliers with chemical usage, classified according to the ZDHC
MRSL. Only formulations that meet Level 3 are counted toward the achievement. Data is collected over a
twelve-month period (November to October), reported directly by suppliers via the BVE3 platform and
validated by third-party auditors. To drive continuous improvement, annual targets have also been set at a
facility level for the past five years. Performance is evaluated annually, and suppliers are required to track
their performance and report progress monthly. The evaluation processes are conducted by third-party
auditors. Through strong collaboration with our chemical formulators via the ‘adiFormulator’ program, which
has been running since 2023, we have improved the quality of chemicals to meet the ZDHC MRSL Level 3
requirements. As a result, 75% of chemical formulations used in production met the ZDHC MRSL Level 3,
up from 73% in 2024.
Share of chemical formulations used at suppliers meeting ZDHC MSRL level 3 in %
75
73
67
46
42
2025
2024
2023
2022
2021
Our Tier 1 and Tier 2 suppliers are required to fulfill local regulatory requirements, as well as adidas
specific environmental requirements, as stated in the adidas Environmental Guidelines. Pollution-related
metrics and targets are adidas specific and are applied to suppliers with high environmental risk due to
their production processes and significant sourcing value in the respective year. Suppliers are reviewed
annually to ensure adequate coverage of our environmental measures.
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Microfiber management
The TMC and ZDHC are focusing on validating test methods for microfiber shedding through TSS analysis.
Due to the current limitations in distinguishing microfibers from other particles in TSS, it is premature to set
specific microfiber metrics. The TMC and ZDHC are developing a reliable measurement framework, which is
essential for establishing future KPI-setting based on a credible and industry-aligned methodology.
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Water and Marine Resources
adidas understands the importance of reducing the environmental impacts caused by its upstream
manufacturing activities. Water consumption, withdrawal, and discharge in our upstream value chain lead to
changes in water availability and water pollution, which may affect local communities and, in the future,
lead to business disruption among our suppliers.
We work to promote responsible water management across our supply base by encouraging the continuous
reduction of water consumption and supporting the implementation of effective water-saving and
conservation practices.
Targets
adidas’ target focuses on improving suppliers’ water efficiency on a yearly basis, resulting in a reduction in
the amount of water used.
Water intensity reduction
40%
(achieved 43% in 2025)
The target focused on water-intensive Tier 2 suppliers
and was designed to reduce their water usage on an intensity level.
(Metric based on number of facilities)
New target for 2026+
Achieve 40% water recycling at Tier 1 and Tier 2 suppliers by 2030.
Key metrics and actions
Our actions are formulated to address water management holistically. They are designed to help us monitor
water consumption, improve water discharge, and drive water efficiency and sustainable water management
in our upstream value chain.
─Continuous monthly reporting and monitoring, with yearly review cycles and third-party
verification
─Technical advice and innovation workshops to improve water management practices
─Industry engagement and collaboration
─Water risk assessment of Tier 1 and Tier 2 suppliers and own operations
─Foundation setting for science-based targets for nature related to freshwater (steps 1 and
2 of the SBTN framework completed)
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ACHIEVED
ESRS 2 – General disclosures
SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and
business model
Water consumption
Negative
impact
Actual
n.a.
Upstream
Impacts on water consumption occur either in the upstream agricultural or facilities’ operational
processes. In agricultural processes, the impact comes mainly from the consumption of water, through
plant evaporation, for raw material production (e.g., cotton cultivation). In facilities’ operational
processes, the impact occurs with the use of water for personal consumption, hygiene and sanitation
purposes. In severe cases, these impacts could lead to a reduced water availability for local
communities.
Water withdrawal
Negative
impact
Actual
n.a.
Upstream
Impacts on water withdrawal occur mainly during upstream water-intensive production processes, such
as dyeing and tanning (mostly present at our Tier 2 suppliers). In severe cases, the combination of
location and water-intensive processes could lead to a reduced water availability for local communities.
Water withdrawal
Risk
n.a.
Long-term
Upstream
For adidas, the risk related to water withdrawal could be related to:
─Stricter regulation in the sourcing countries, potentially leading to higher operational costs for
suppliers.
─Business disruption and/or reduced manufacturing capacity at our suppliers, due to the reduced
availability and higher cost of water.
Water discharges
Negative
impact
Actual
n.a.
Upstream
Impacts on water discharges occur during upstream production processes. They are mainly present
during the dyeing and tanning phases as these are chemical and water-intensive processes. In severe
cases, these impacts could lead to the pollution of bodies of water compromising living conditions for
local communities.
Water discharges
Risk
n.a.
Long-term
Upstream
For adidas, the risk related to water discharge could be connected to:
─Stricter regulation in sourcing countries, potentially leading to higher operating costs for suppliers
and/or fines for non-compliance.
─Reputational risks, if adidas is linked to claims related to damage of living conditions by local
communities due to improper water discharge.
SBM-3 – Water and marine resources and material impacts, risks and opportunities (IROs)
Material matter
Material IRO
Classification
Time horizon
Value chain
Description
At adidas, our own operations mainly include offices, retail stores, and distribution centers. These sites do
not rely on water for industrial processes, and water use is limited to domestic purposes. Wastewater is
directed to public sewer systems for treatment by local authorities, and no discharge goes directly into
natural water bodies. Nevertheless, we continuously monitor and manage water-related topics in our own
operations through our Integrated Management System, including the implementation of water-saving
technologies and best practices, wherever possible.
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Impact, risk and opportunity management
E3-1 – Policies related to water and marine resources
Environmental Guidelines
(WC, WW, WD)
Describes ways to prevent pollution, manage
and control environmental impacts, and avoid
depletion of natural resources; includes
information on water efficiency and
requirements for water withdrawals and water
conservation.
Upstream
(Tier 1 and
Tier 2 suppliers)
SVP Product
Development &
Sourcing
WHO Guidelines for
drinking water
quality
adidas suppliers,
affected
communities, ZDHC
Accessible on
corporate website
Water Management Policy
(WC, WW, WD)
Outlines our water management approach in
upstream manufacturing activities. It requires
suppliers to implement responsible and science-
based practices.
Upstream
(Tier 1 and
Tier 2 suppliers)
SVP Product
Development &
Sourcing
Science Based
Targets Network
(SBTN)
adidas suppliers,
affected
communities
Available on
supplier SharePoint
1 Material matters addressed by policies and guidelines are abbreviated as follows:
WC – Water Consumption
WW – Water Withdrawal
WD – Water Discharge
E3-1 – Policies related to water and marine resources
Policies1
Content
Scope
Senior level
responsible
Third-party
standards/
initiatives
Stakeholder
consideration
Availability
adidas Environmental Guidelines
Our adidas Environmental Guidelines set specific and measurable targets for suppliers with water-intensive
processes in their facilities (mostly Tier 2 suppliers), while Tier 1 suppliers adopt a self-governance
approach and are encouraged to continuously improve their water efficiency and reduce their consumption.
We communicate the objectives and related targets of the adidas Environmental Guidelines to all affected
suppliers, including the specific requirements outlined in the ‘Water Conservation and Access to Water’
section. At a minimum, we expect suppliers to comply with the following:
─Any abstraction of water from surface or groundwater must comply with local regulations and be
authorized by the relevant authorities.
─Illegal water intake is prohibited.
─Suppliers are expected to ensure responsible water extraction and consumption. They are strongly
encouraged to implement water recycling and reuse practices to minimize overall water intake.
Water Management Policy
Our Water Management Policy, aligned with our adidas Environmental Guidelines, aims to address water
withdrawal and discharges by promoting the continuous reduction of water consumption in our upstream
value chain, where water use hotspots in manufacturing processes can be found. The policy applies to 80%
of Tier 1 and Tier 2 suppliers, based on sourcing value.32 This also includes suppliers that may be located
in water-risk areas according to adidas’ water risk assessment. Based on scientific frameworks such as
SBTN, this policy also supports various conservation measures, including water-saving and recycling
practices as well as improvements to sanitary conditions in factory environments. In addition, our policy
also emphasizes responsible wastewater management to mitigate water quality risks related to the
activities conducted by the above-mentioned suppliers.
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32 Unless described otherwise, this scope always applies in E3-1, E3-2, and E3-3 when referring to Tier 1 and Tier 2 suppliers.
These suppliers are required to comply with our policies, which mandate responsible water use, including
managing withdrawals and discharges. Suppliers are encouraged to continuously improve water efficiency
and discharge quality to reduce their impact on ecosystems. Compliance and performance related to these
policies and targets are verified annually through independent third-party audits.
Policies, actions, and targets related to water quality – specifically those addressing water pollution,
wastewater management, and microfibers in our supply chain – are detailed in all the sections of chapter
E2. For further information, please refer to:
►SEE ESRS E2 – POLLUTION
E3-2 – Actions and resources related to water and marine resources
Our actions regarding the material topics are related to our upstream supply chain. They adhere to our
Water Management Policy and adidas Environmental Guidelines and are designed to holistically address
the material water topics in our upstream supply chain. These actions are designed to help us monitor
water consumption and withdrawal, improve water discharge, and drive water efficiency and sustainable
water management in our upstream value chain. They collectively contribute to the implementation of the
policies and the achievement of the water intensity reduction target at the supply chain level. Our actions
tackle all the material impacts, risks and opportunities identified in section SBM-3 – Materials impacts,
risks and opportunities and their interaction with strategy and business model.
These actions are mainly executed and monitored by our Sourcing Sustainability team, which operates
within our key sourcing countries. The team provides capacity building training and technical advice to
individual suppliers (Tier 1 and Tier 2) on areas for improvement, focusing on resource efficiency and
responsible management practices. Stakeholder collaboration and engagement is driven by the
Sustainability and ESG team in alignment with the Sourcing Sustainability team.
In the reporting year, adidas carried out the following actions related to water management:
─Setting upstream supply chain targets: To reduce water withdrawal from natural sources, adidas
recognizes the importance of responsible water management and clear reduction targets. Building on the
progress achieved over the past five years, we are committed to further advancing water reuse and
recycling within our production processes. In 2025, we established a new five-year target of achieving
40% water recycling among our Tier 1 and Tier 2 suppliers. We believe that setting such targets not only
supports sustainable business growth but also contributes to the long-term mitigation of water stress in
the regions where our suppliers operate.
─Continuous technical support, monitoring, and reporting: For over a decade, adidas has conducted
monthly monitoring of water consumption and water flow at key production sites. Regional teams
systematically track and report water usage and discharge through sub-metering. This enables the early
detection of leaks, abnormal usage, and areas for improvement. Any anomalies trigger immediate
corrective action, with suppliers responsible for resolution and regional teams providing follow-up and
remediation support as needed. We also offer technical guidance to suppliers, promoting best practices,
such as recycling cooling water and installing reverse osmosis systems for effluent treatment. To further
enhance water efficiency and support our water and pollution targets, our adidas Environmental
Guidelines outline key actions for water recycling and recovery at supplier facilities. These include storm
and rainwater harvesting, zero discharge design, recycling of wastewater in production and cooling
towers, use of local recirculation systems, reusing and recycling cooling tower blowdown, and minimizing
condenser or cooling tower blowdown to prevent dissolved solids buildup. We also engage third-party
experts to conduct on-site visits and provide technical support to suppliers in implementing these
measures.
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─Third-party verification: All of the above-listed actions and reported data from our Tier 1 and Tier 2
suppliers are verified by third-party experts, who also provide advice on further water-saving practices,
ensuring compliance with our standards and guidelines on an annual basis. We conduct yearly review
cycles to evaluate our water management program on Tier 2 level. The review of water management
areas revealed no major concerns. Advancements in water intensity savings are highlighted in the E3-3
target section.
─Stakeholder engagement and collaboration: In 2025, adidas deepened its engagement within the
sustainability community – both with industry peers and partners across its supply chain – to advance
responsible water and pollution management. We organized awareness initiatives, such as webinars and
supplier summits, to share best practices and industry expertise. Ongoing collaboration with
organizations such as the Leather Working Group (LWG) and the Better Cotton Initiative (BCI) helped
shape environmental standards for raw materials, with a focus on water management at tanneries and
farms, soil health, and the responsible use of pesticides. To put these commitments into practice,
adidas prioritized sourcing preferred materials during the product design phase, including LWG-certified
leather and third-party-certified cotton. This approach ensures robust water resource planning and
addresses our water IROs through recognized certification schemes.
─Internal learning and innovation for water management: In 2025, adidas organized learning sessions
with different stakeholders in our supply chain, including one Tier 4 supplier, to address cross-industry
challenges related to water withdrawal and consumption in textile and agriculture sectors. These
sessions focused on exploring innovative solutions, such as advanced recycling systems and digital
monitoring technologies, aimed at reducing water impact across the supply chain. By engaging both
external stakeholders and employees, this initiative reinforced the importance of effective water
management and fostered greater awareness and action across all levels of the organization.
─Water risk assessment across the supply chain: In 2025, we carried out a water risk mapping, which
included areas of high-water stress, for our Tier 1 and Tier 2 suppliers as well as for our owned and
managed facilities. The assessment was performed with the WRI Aqueduct 4.0 tool. The aim was to
understand the water risks associated with the activities of our local suppliers in their operating areas.
This helped us make informed decisions to safeguard our long-term business. Regarding our suppliers,
we plan to incorporate these insights into our communication channels to develop mitigation and
adaptation plans that address the identified water risks.
─Laying the foundation for science-based targets for nature: In 2025, we successfully completed steps
one and two of the Science Based Targets Network (SBTN) framework, marking a significant milestone in
our commitment to taking action. Step one involved conducting a robust materiality assessment to
identify our most relevant impacts and dependencies on nature to confirm that our efforts are focused
where they matter most in relation to our activities and materials in our supply chain. Step two enabled
us to gain a deep understanding of our footprint across key environmental domains – freshwater, land,
biodiversity, and climate – laying the foundation for setting science-based targets for nature. These steps
not only enhanced our strategic alignment with adidas’ decarbonization and deforestation-free goals but
also strengthened our data capabilities and cross-functional collaboration. Moreover, we are convinced
that these steps will assist us in driving meaningful change in the next phases, especially in activities
related to freshwater in our supply chain. The results related to freshwater will be used as the basis for
the next phase of target-setting for our supply chain and for our own operations.
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Our actions regarding water quality, including pollution related to wastewater, as well as information
concerning wastewater recycling for our supply chain, are disclosed in E2-2 – Actions and resources related
to pollution. Actions related to the reduction of plastic use in our products are disclosed in E5-2 – Actions
and resources related to resource use and circular economy.
►SEE ESRS E2-2 – ACTIONS AND RESOURCES RELATED TO POLLUTION ► SEE ESRS E5-2 – ACTIONS AND RESOURCES RELATED TO RESOURCE USE AND
CIRCULAR ECONOMY
Metrics and targets
E3-3 – Targets related to water and marine resources
Addressing water withdrawal and water consumption in our supply chain
To reduce the water withdrawal across our supply chain, we promote more efficient water use in our
production processes. To achieve this, in 2020 we set a five-year water intensity reduction target for our
global supply chain: reduce the overall water intensity at adidas’ water-intensive Tier 2 production facilities
by 40% by 2025 (baseline: 2017; baseline value: approximately 0.0157 m3/US $ – m3/total product output
value in US $). This target was established to consider the quantity and quality of water from intensive
water usage manufacturing processes, and it is not yet connected with a specific water risk level.
Moreover, the target and its related metric are adidas specific and not required by legislation. For this
target, individual facilities were expected to reduce their water intensity by at least 5% each year, resulting
in a decrease of the amount of water used – e.g., by increasing the recycling rate of water used in
production and minimizing freshwater intake. The target contributes to achieving the reduction in water
withdrawal and water consumption, as stated in the adidas Environmental Guidelines.
This water intensity target was based on facility-level water use in activities and processes, with a focus on
WWF-identified hotspots33 in the textile supply chain where adidas has direct influence. While this target
was not initially developed with consideration of the specific local water basin conditions of our suppliers,
the actions taken to achieve it have always accounted for local capabilities and natural conditions. This
approach ensured that implementation was responsive to the unique challenges and opportunities at each
site. Looking ahead, we plan to align future freshwater targets with the Science Based Targets Network
(SBTN) requirements for nature-related goals, building on insights gained from our previous actions and
resources, as described in E3-2. This will enable us to better integrate local water basin conditions into our
target-setting process and further enhance our impact on water and marine resources.
In the reporting year, we exceeded our 2025 water-intensity reduction target of 40%, achieving a 43%
reduction (2024: 34%). This progress reflects the commitment of our Tier 2 suppliers, who continue to
improve the water management practices within their operations. Through our annual assessment process
with suppliers and third-party auditors, we identified improvement opportunities and continuously bring
efficiency to the overall process.
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33 Morgan, A.J., Luthra, P., Parma, M. and Petrie, L. (2022) Eau Courant: Water stewardship in apparel and textiles – Part I, Water and the Industry’s value chain.
WWF-Germany.
Water intensity at Tier 2 production facilities in % vs. 2017 baseline
The target performance was tracked and verified on an annual basis, based on primary consumption data
reported by each facility into the adidas system and verified by third-party auditors. Water intensity is
calculated as the volume of water used in a specific facility (in m3) per product output value (in US dollars).
Data covers a twelve-month period (from January to December) and a third-party auditor validates the data
before we use it for the KPI calculation. The metric was developed in accordance with relevant industry
standards, baseline assessments, and best practices among our suppliers and peers.
For targets related to water quality, such as quality of wastewater discharge and chemical input
management targets, please see the following section:
►SEE ESRS E2-3 – TARGETS RELATED TO POLLUTION
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Biodiversity and Ecosystems
Managing the impact of our business operations on biodiversity and ecosystems along the value chain is a
key focus of our sustainability strategy. The usage of nature-derived materials and conventional agricultural
practices leads, in severe cases, to land-use change and a reduction of biodiversity which can affect
ecosystems and local communities, but also future availability of these materials. To address these
impacts, we follow holistic frameworks such as SBTN’s science-based targets for nature and the
Accountability Framework to guide our approach: assess, reduce, and restore. Our nature strategy is
operationalized though our Biodiversity and Ecosystems Policy.
Targets
Deforestation- and conversion-free (DCF) supply chains for high-risk commodities by 2030
This target applies to the high-risk commodities sourced for adidas products: bovine leather
(excluding recycled leather and leather trims), natural rubber and timber-related materials
(man-made cellulosic fibers and paper-based packaging)
100%
third-party certified cotton
(achieved since 2018)
This target applies to all cotton sourced
for adidas products.
100%
third-party certified wool
(achieved since 2024)
This target applies to all sheep wool sourced
for adidas products.
Key metrics and actions
In 2025, we started rolling out our Biodiversity and Ecosystems Policy and continued to focus on the
traceability of materials, material innovation, and collaboration to drive change in the industry.
─Advanced supply chain mapping for leather, natural rubber, and timber-derived materials
─Created awareness for suppliers on our sourcing practices and expectations
─Formalized guidance on sourcing man-made cellulosic fibers and cotton
─Collected country of origin information for cotton based on supplier self-declaration and
continued to steer our cotton portfolio toward a verified country of origin for all cotton
sourced
─Continuously scouted and piloted material solutions
─Collaborated with industry organizations such as Textile Exchange, Better Cotton Initiative,
and Leather Working Group to create industry standards that help reduce the impact of
raw materials on biodiversity and enhance transparency in the supply chain
ANNUAL REPORT 2025
205
ESRS 2 – General disclosures
E4-1 – Transition plan and consideration of biodiversity and ecosystems in strategy and
business model
Managing the impact of our business operations on biodiversity and ecosystems along the value chain is a
key focus of our work in the area of sustainability. For this, we follow holistic frameworks such as SBTN’s
science-based targets for nature and the Accountability Framework to guide our approach: assess, reduce,
and restore.
While we have transparency on the locations and business activities of our Tier 1, Tier 2, and part of our
Tier 3 suppliers, information about the origin of raw materials (suppliers in Tier 4 and beyond) is not
available in a systematic and verified manner. As man-made deforestation is the biggest driver of terrestrial
biodiversity loss globally,34 we focus on deforestation-free supply chains as a priority for us for the years to
come.
At the same time, we understand that maintaining, preserving, and restoring biodiversity is a complex
challenge that requires systemic change and strong collaboration among multiple actors, including
suppliers, certifiers, innovators, NGOs, and industry peers. As a signatory of the Fashion Pact and a
member of several industry working groups, we are committed to setting specific targets and action plans
to decrease our impact on biodiversity and advocate for the topic in different forums, including support for
innovation, which adidas understands as an important enabler for systemic change.
Biodiversity is also addressed through water efficiency, water quality, and chemical management programs
with Tier 1 and Tier 2 suppliers.
►SEE ESRS E2 – POLLUTION ►SEE ESRS E3 – WATER AND MARINE RESOURCES
Biodiversity assessment 2025
adidas recognizes its dependencies on reliable and cost-effective access to ecosystem services and at the
same time also acknowledges its impacts on ecosystems and their provision of different ecosystem
services. These indirect or direct impacts, being positive or negative, were considered in adidas’
dependencies and impact analysis conducted in 2025 as part of the SBTN exercise,35 using ENCORE, a
specialized tool for biodiversity and assessments related to natural capital. The analysis concluded that the
biggest dependencies and impacts are related to structure and biotic integrity, followed by water and
atmosphere. This is due to our business reliance on raw materials and on regulating and maintenance
services related to water, but also due to pressures on the physical structure and composition of different
ecosystems, such as climate, rainfall pattern, and soil regulation services. Species as natural capital
turned out to play a significant role in our upstream value chain through their ecosystem services, such as
solid waste remediation, biological control, and pollination services. For these ecosystem services,
understanding the relevance of possible local impacts is paramount, and, for this reason, adidas conducted
a more detailed biodiversity assessment, including the factor of proximity to sensitive biodiversity areas as
key criteria.
Overall, the biodiversity dependencies and impacts analysis as well as the biodiversity risk analysis and the
biodiversity proximity impact assessment, all showed that biodiversity dependencies, impacts, and risks as
described in ESRS 2 IRO-1 and in table SBM-3 – Biodiversity and ecosystems material impacts, risks and
opportunities are more prevalent in the upstream value chain and will become more relevant for adidas
from 2030 onwards (long-term timeframe). Nevertheless, due to our operating model and our agility and
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34 ►UN.ORG
35 Different tools were used for the different steps of SBTN. ENCORE and LCA models were used as part of SBTN step 1: Assess.
flexibility in terms of design, material selection, and sourcing locations – all connected to our upstream
value chain – we consider our business model and our strategy sufficiently resilient in the short and
medium term.
►SEE ESRS 2 – IRO-1 – DESCRIPTION OF THE PROCESS TO IDENTIFY AND ASSESS MATERIAL IMPACTS, RISKS AND OPPORTUNITIES
Scope and main assumptions
Our biodiversity dependencies and impacts analysis has taken into account the current adidas business
model and value chain, covering main manufacturing processes used by our direct suppliers, e.g., Tier 1
manufacturing of footwear and apparel, and also activities related to our indirect suppliers, such as Tier 3
leather tanneries and spinning and weaving mills, which are located in our upstream value chain. Our own
operations (offices and distribution centers) were also included in the analysis. The assessment was
conducted by using the ENCORE tool and LCA models, based on the type of economic activities carried out
in our value chain (which were based on the International Standard Industrial Classification of All Economic
Activities – ISIC – codes), especially considering adidas’ use of natural and synthetic materials for its
products.
To enhance our analysis, we also considered biodiversity-related aspects in the climate risk assessment –
mainly related to the effects of changes in the weather patterns and the associated risk of sourcing
essential natural materials such as cotton, leather, and rubber in the future and the impacts of climate
change on the availability of these materials. For this risk assessment, we did not take into consideration
any future potential changes to our asset base, sourcing locations, and material portfolio. Also, to be
conservative, we did not assume technology-driven yield improvements in the production of raw materials.
Lastly, understanding that biodiversity risks are usually experienced locally, we also conducted a
biodiversity assessment considering the proximity of the locations of selected Tier 1 and Tier 2 suppliers
(preliminary assessments) and our own operations in 2025 to biodiversity-sensitive areas by using the
Integrated Biodiversity Assessment Tool (IBAT) from BirdLife International. The input variables were the
location of the site (latitude/longitude), activities at the site (e.g., administrative office, distribution center),
and a proximity buffer according to the economic activities conducted at each location. Moreover, two types
of aggregated biodiversity-sensitive areas were used: Protected Areas (PAs) and Key Biodiversity Areas
(KBAs), as defined by the IUCN (International Union for Conservation of Nature and Natural Resources) and
BirdLife International, respectively.36
Our biodiversity dependencies and impacts analysis as well as our climate and biodiversity risk analysis
applied the same time horizons as defined in our enterprise risk management system: short-term (one
year), medium-term (two to five years), long-term (over six years). The biodiversity proximity impact
assessment considered a short-term time horizon (one year).
Stakeholders involved
Internal stakeholders from different departments (e.g., Enterprise Risk Management, Workplaces,
Sustainability and ESG, Investor Relations, Product Development & Sourcing) were formally involved when
assessing the resilience of our business model with respect to climate and biodiversity risks. Moreover, our
internal experts are in regular contact with external stakeholders in more informal settings (such as
conferences, meetings, and working groups), and their views are therefore indirectly considered in our
internal assessments. These external stakeholders include organizations such as the World Wide Fund for
Nature (WWF), Canopy Planet, Textile Exchange, Organic Cotton Accelerator (OCA), and the Leather Working
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36 PAs can be national parks and equivalent reserves, recognizing they are valuable for economic and scientific reasons and as areas for the future preservation
of fauna and flora and geologic structures in their natural state. KBAs are sites that contribute significantly to the global persistence of biodiversity (in terrestrial,
freshwater, and marine ecosystems) and that meet one or more of eleven criteria, clustered into five categories: threatened biodiversity; geographically restricted
biodiversity; ecological integrity; biological processes; and irreplaceability.
Group (LWG), as well as other companies in the same value chain, peers, and local farmers (from Brazil,
Australia, Vietnam, the US, Pakistan, and Turkey).
SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and
business model
Climate change
Negative
impact
Actual
n.a.
Upstream
Climate change effects negatively impact biodiversity and ecosystem services. Our total GHG emissions
(disclosed under ESRS E1 Climate change) contribute to this effect.
Land-use change;
freshwater-use and
sea-use change
Negative
impact
Actual
n.a.
Upstream
adidas' increased use of nature-derived materials or the use of non-certified materials leads, in severe
cases, to land-use changes (e.g., through deforestation and/or poorly managed agriculture practices).
Land-use change;
freshwater-use and
sea-use change
Risk
n.a.
Long-term
Upstream
For adidas, the risk related to land-use change could be related to:
─Increased operational costs, potential fines for non-compliance, and inability to sell in specific
markets, due to the need of an end-to-end traceability system to comply with upcoming regulations.
─Reputational risks if adidas is associated with deforestation claims.
Impacts on the
extent and
condition of
ecosystems
Negative
impact
Actual
n.a.
Upstream
Conventional agriculture practices cause land-use change and degradation, if not carried out in an
environmentally responsible manner. This, in turn, negatively impacts certain ecosystems by reducing
their species in size and diversity and exhausting soil and water resources.
Impacts and
dependencies on
ecosystem services
Negative
Impact
Actual
n.a.
Upstream
Land-use change and conventional agriculture practices, if not carried out in an environmentally
responsible manner, negatively impacts ecosystem services and also local communities. With regard to
adidas’ dependency on ecosystem services, it goes beyond resource use and also includes water supply
for our supply chain processes and availability of renewable energy for our suppliers.
Impacts and
dependencies on
ecosystem services
Risk
n.a.
Long-term
Upstream
For adidas, risks related to the impact and dependencies on ecosystem services could be related to:
─Increased costs and/or unavailability of raw materials (especially nature-derived materials).
─Increased costs or unavailability of water for production processes (e.g., dyeing and tanning).
SBM-3 – Biodiversity and ecosystems and material impacts, risks and opportunities (IROs)
Material matter
Material IRO
Classification
Time horizon
Value chain
Description
In 2025, our biodiversity proximity impact assessment did not identify material biodiversity impacts and
risks related to our own operations (covering owned and leased offices and distribution centers under our
operational control). The proximity assessment identified nine sites (covering an area of 56.6 ha) that are
in or near biodiversity-sensitive areas. The same result was obtained in 2024. Due to their location,
national context, nature of business activity, and environmental management practices already in place as
part of the Integrated Management System, the potential impact of the activities at the sites do not
materially affect the area as they will not result in the deterioration of natural habitats and habitats of
species, nor will they disturb species for which a protected area has been designated. Moreover, adidas
has no direct operations that affect threatened species, including flora and fauna listed in the European
Red List of Threatened Species or the IUCN (International Union for Conservation of Nature and Natural
Resources) Red List of Threatened Species.37 In our 2025 assessment, we did not identify any negative
impacts on soil biodiversity from our own operations, aside from those already associated with the initial
construction of office buildings and distribution centers. Furthermore, there were no changes in the
locations of our operational sites compared to the previous year, indicating that our activities have not
introduced new risks to soil health or local ecosystems. We remain committed to ongoing monitoring to
ensure that our operations continue to avoid contributing to soil degradation or loss of biodiversity. Due to
the complexity of the activities conducted by our suppliers, the Tier 1 and Tier 2 suppliers’ biodiversity
proximity impact assessments will be further analyzed and combined with the water risk assessment at a
later stage.
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37►IUCNREDLIST.ORG
Impact, risk and opportunity management
E4-2 – Policies related to biodiversity and ecosystems
Biodiversity and Ecosystems
Policy
(CC, LFSC, IECE, IDES)
(S, P, C)
Describes our approach to biodiversity and the
way to achieve deforestation- and conversion-
free supply chains by 2030 or earlier, including
human rights and inputs for biodiversity
assessments. It addresses our IROs and
indicates adidas’ targets for biodiversity
Upstream and own
operations
SVP Sustainability
and ESG
Kunming-Montreal
Global Biodiversity
Framework,
Accountability
Framework Initiative
(AFI), SBTi and
SBTN, UN
Declaration on the
Rights of Indigenous
Peoples, ILO
Convention No. 169
(Indigenous and
Tribal Peoples
Convention)
UN Guiding
Principles on
Business and
Human Rights
External
stakeholders
(NGOs), legislation,
and internal
stakeholders
Accessible on
corporate website
Policy for the Control and
Monitoring of Hazardous
Substances (A01)
(IECE, IDES)
(S, P)
Prohibits the use of chemicals considered
harmful or toxic and includes the restrictions of
using animal-derived materials, such as the
exclusion of sourcing or processing any raw
materials from endangered or threatened
species
Upstream
(Tier 1 and Tier 2
suppliers)
SVP Product
Development &
Sourcing, General
Counsel
WFSGI, IUCN, ILO,
AFIRM
External
stakeholders
(NGOs), legislation,
and consumer
expectations
Accessible on
corporate website
Standards on animal-derived
materials
(IECE, IDES)
(S, P, C)
Sets the requirements for sourcing of animal-
derived materials and rules out sourcing of
endangered or threatened species
Upstream
SVP Sustainability
and ESG
World Organization
for Animal Health,
IUCN, Leather
Working Group,
Materials Matter
Standards (Textile
Exchange)
n.a.
Accessible on
corporate website
Responsibly Sourced
Synthetics SOP
(CC, LFSC, IECE, IDES)
(S, C)
Describes procurement expectations as well as
practices for assessing bio-based synthetics in
terms of environmental and social impacts,
restricting certain commodities associated with
high-risk of deforestation in their supply chain
Upstream
SVP Product
Development &
Sourcing
Textile Exchange
standards:
Reference the seven
high-risk
commodities
defined by WRI
Global Forest Review
and WWF
Deforestation Fronts
n.a.
Directly shared with
suppliers
1 Material matters addressed by policies and guidelines are abbreviated as follows:
CC – Climate Change
LFSC – Land-use change; freshwater-use and sea-use change
IECE – Impact on the extent and condition of ecosystems
IDES – Impacts and dependencies on ecosystem services
2 Topics addressed by policies and guidelines are abbreviated as follows:
S – Sourcing from ecosystems that are managed to maintain conditions for biodiversity
P – Production in ecosystems that are managed to maintain conditions for biodiversity
C – Consumption from ecosystems that are managed to maintain conditions for biodiversity
E4-2 – Policies related to biodiversity and ecosystems
Policies1, 2
Content
Scope
Senior level
responsible
Third-party
standards/
initiatives
Stakeholder
consideration
Availability
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Nature Strategy and Biodiversity and Ecosystems Policy
adidas’ Nature Strategy outlines our commitment to achieving deforestation- and conversion-free (DCF)
supply chains by 2030 or earlier, integrating human rights considerations and aligning with our
decarbonization goals. The strategy focuses on our upstream supply chain, particularly sourcing materials
with deforestation risks – such as leather, natural rubber, and timber – while also targeting compliance and
the reduction of indirect carbon emissions from land use.
In 2025, we launched the adidas Biodiversity and Ecosystems Policy38 to embed this strategy across our
operations and supply chain. The policy formalizes our DCF targets and actions to address our most
significant impacts, risks, and opportunities (IROs) related to climate change, land-use change, ecosystem
health, and ecosystem services. It serves as an umbrella for functional policies and standard operating
procedures (SOPs) that guide biodiversity-related measures throughout the organization, applying to all
adidas sites, including those in or near biodiversity-sensitive areas. Following its launch, we initiated the
biodiversity policy implementation phase, engaging all relevant functions to co-create action plans aligned
with policy objectives. By publicly stating our commitments, we reinforce our dedication to collaboration and
innovation in the areas of our supply chain where pressures on nature are greatest. We believe that this
policy, in conjunction with our broader strategy, will help us address key biodiversity dependencies and
pressures in our supply chain.
Policy for the Control and Monitoring of Hazardous Substances
Our A-01 Policy for the Control and Monitoring of Hazardous Substances prohibits the use of harmful or
toxic chemicals in production and restricts the use of animal-derived materials from endangered or
threatened species, as defined by the IUCN Red List. This policy further supports our efforts to protect
ecosystems and species.
Standards on animal-derived materials39
adidas is committed to sourcing animal-derived materials in a humane, ethical, and sustainable manner,
prioritizing animal welfare and species conservation. Our standards on animal-derived materials prohibit the
use or processing of certain materials and set minimum requirements for material sourcing. By prioritizing
certified materials, we promote sustainable land and agricultural practices, protect pasture landscapes,
and mitigate negative impacts from land-use change. These standards are operationalized through SOPs
detailing certification, traceability, and responsible sourcing requirements.
Responsibly Sourced Synthetics SOP
To reduce dependence on fossil fuel-based resources, adidas is moving away from virgin fossil-based
materials in favor of recycled or renewable alternatives, such as bio-based feedstocks. This transition helps
conserve finite resources, lower our carbon footprint, and reduce pressure on nature. More details on
sustainably sourced renewable materials40 are provided in ESRS E5 – Resource use and circular economy.
In plastics and synthetic production, bio-based feedstocks can substitute certain chemical building blocks
traditionally sourced from fossil fuels. Before integrating bio-based feedstocks into our material portfolio,
we conduct a comprehensive impact assessment using multi-factor analysis. Feedstocks linked to
deforestation are either excluded or require certification to ensure responsible forestry and land
management. Additionally, all feedstocks are evaluated based on sourcing origin, environmental impact
drivers, and potential social and human rights risks. These requirements are embedded in our Biodiversity
and Ecosystems Policy and operationalized through the Responsibly Sourced Synthetics SOP.
►SEE ESRS E5-1 – POLICIES RELATED TO RESOURCE USE AND CIRCULAR ECONOMY
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38 ►ADIDAS-GROUP.COM/SUSTAINABILITY
39 ►ADIDAS-GROUP.COM/SUSTAINABILITY
40 Textile Exchange refers to these as fibers produced from renewable resources, such as plants or agricultural waste, using practices that minimize
environmental impact throughout the lifecycle.
Additional considerations
─Traceability and ecosystem impacts: Traceability is central to understanding and addressing our
biodiversity IROs. By increasing traceability of materials, adidas can better assess and mitigate local
impacts on ecosystems and ecosystem services and engage collectively in solutions that decrease
pressure on nature. Traceability expectations are outlined in our Biodiversity and Ecosystems Policy and
related SOPs.
─Human rights considerations: adidas upholds internationally recognized human rights throughout its
operations and value chain. Our Biodiversity and Ecosystems Policy explicitly incorporates human rights
and livelihoods, with cross-references to our Human Rights Policy, recognizing the interlink between
environmental and social risks and ensuring that our approach to biodiversity also addresses human
rights considerations across the value chain.
►SEE ESRS S2 – WORKERS IN THE VALUE CHAIN ►SEE ESRS S3 – AFFECTED COMMUNITIES
─Other policies: Our approach to biodiversity is supported by policies on climate change, pollution, water
and marine resources and resource use and circular economy. For example, our climate strategy
promotes alternative materials and processes that address land-use change, while our adidas
Environmental Guidelines minimize pollution and safeguard habitats. These integrated policies support a
holistic approach to reducing pressures on biodiversity and align with international frameworks such as
the Kunming-Montreal Global Biodiversity Framework and Science Based Targets Network (SBTN). The
policies can be found in the respective topical standards.
►SEE ESRS E1-2 – POLICIES RELATED TO CLIMATE CHANGE MITIGATION AND ADAPTATION
►SEE ESRS E2-1 – POLICIES RELATED TO POLLUTION
►SEE ESRS E3-1 – POLICIES RELATED TO WATER AND MARINE RESOURCES
►SEE ESRS E5-1 – POLICIES RELATED TO RESOURCE USE AND CIRCULAR ECONOMY
E4-3 – Actions and resources related to biodiversity and ecosystems
Due to the complex supply chain structures in our industry, a key focus of our actions is to understand the
origin and the respective biodiversity impact of the raw materials we use. Therefore, in 2025, we continued
to focus on enhancing transparency and traceability of materials by mapping upstream value chains of key
materials and by actively contributing to the development of industry-wide solutions for material traceability
through our participation in several working groups. The highest priority was given to materials associated
with a man-made deforestation risk (which for us are leather, natural rubber, and timber-derived materials),
followed by cotton as the largest nature-derived material used in our portfolio. We also established the
Biodiversity and Ecosystems Policy, along with standard operating procedures (SOPs), to facilitate the
implementation of our Nature Strategy.
adidas recognizes the importance of Indigenous Peoples’ and local communities’ (IPLC) rights and
knowledge in effective biodiversity management. While we did not engage directly with IPLCs in 2025, their
perspectives are incorporated indirectly through our adherence to internationally recognized standards and
certifications – such as the FSC, Better Cotton Initiative (BCI), and Organic Cotton Accelerator –, which
include criteria for respecting indigenous rights, land tenure, and the integration of local knowledge into
sustainable land management and sourcing practices. In 2025, adidas did not focus on direct nature-based
solutions. Biodiversity offsets are not currently part of our short- or mid-term action plans, as our strategy
prioritizes prevention, responsible sourcing, and avoiding negative impacts.
Overall, the actions stated below contribute to achieving our targets and tackling all of our material IROs in
the field of biodiversity and ecosystem by individually addressing one or more of the identified material
IROs. For the coordination and monitoring of actions, we rely on internal resources (mainly from the
Sustainability and ESG Team). Unless explicitly stated otherwise, all actions are ongoing.
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In the reporting year, adidas carried out the following actions related to biodiversity:
─Biodiversity and Ecosystems Policy development and implementation: In June 2025, adidas launched
its Biodiversity and Ecosystems Policy, formalizing our commitments and expectations to address the
company’s impacts on nature, supporting our target to eliminate deforestation and ecosystem
conversion from our supply chain. The policy includes the feedback from the stakeholder dialogue held in
2024 with selected external stakeholders. Examples of the feedback received and included was:
integration of specific wording on reduction of virgin resources and reference to restoration plans linked
to adidas business operations. The Biodiversity and Ecosystems Policy implementation phase began in
the second half of 2025, involving all relevant functions across the business. As part of this, Standard
Operating Procedures (SOPs) for nature-derived materials were created, and functions started to embed
the policy in their business, co-creating strategies to achieve adidas biodiversity targets.
►ADIDAS-GROUP.COM/SUSTAINABILITY/POLICIES ► ADIDAS-GROUP.COM/SUSTAINABILITY/PLANET
─Leather: In 2025, our actions on leather were guided by three main objectives under the Biodiversity and
Ecosystems Policy: increasing supply chain transparency, strengthening industry collaboration, and
raising supplier awareness. To enhance transparency, we conducted a new comprehensive supply chain
mapping for all leather suppliers we worked with in 2025, aiming to trace raw material origins up to the
slaughterhouse and, where possible, to the farm level. In this mapping exercise, with support of our
suppliers, we were able to increase our understanding of our upstream supply chain. This mapping
supports our goal of achieving deforestation- and conversion-free (DCF) bovine leather supply chains by
2030 or earlier. We also engaged with indirect suppliers and cross-industry partners to explore
certification and due diligence solutions for deforestation-free sourcing. adidas actively contributed to
industry working groups, including Textile Exchange’s Deforestation-free Call to Action for Leather
initiative and the Leather Working Group’s Chain of Custody task team, to advance the development of
standards for traceability and deforestation-free protocols. Additionally, we participated in a pilot for the
Global Traceability Framework for Beef and Leather to help develop robust data standards. To build
awareness, we communicated our DCF targets to suppliers through a formal communication, dedicated
meetings and workshops. As part of the policy implementation, we finalized our Responsible Leather
SOP, translating DCF commitments into actionable sourcing requirements for our suppliers. Following the
decision taken in 2024, adidas stopped purchasing kangaroo leather and ended manufacturing products
with this material in 2025.
─Endangered or threatened species: In 2025, adidas continued its commitment not to source or process
any raw materials from endangered or threatened species. This was emphasized through our policies and
creation guidelines for our products as well as through active engagement with our development teams
on this topic. This supports biodiversity by protecting vulnerable species, based on the IUCN Red List,
and helps prevent negative impacts in the upstream part of our value chain. This action applies to all
materials sourced by adidas and aligns with our Biodiversity and Ecosystems Policy, our Policy for the
Control and Monitoring of Hazardous Substances (A-01) and the Global Biodiversity Framework (GBF),
addressing ecosystem dependencies and risks.
─Natural rubber: In 2025, we conducted a more comprehensive supply chain mapping for our natural
rubber suppliers we worked with in 2025, aiming to enhance transparency to understand possible
impacts and risks related to deforestation that may be present in this supply chain. This more
comprehensive exercise was led by the Traceability team, and, in contrast to the previous exercise,
responses were obtained from Tier 4+ in this supply chain in 2025. This mapping directly supports the
implementation of our Biodiversity and Ecosystems Policy and Nature Strategy. Another implementation
step conducted in 2025 was the translation of adidas’ expectations into actionable steps to our
suppliers by developing the Natural Rubber SOP. Communications about our deforestation- and
conversion-free (DCF) targets to suppliers were conducted through trainings and specific meetings.
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Additionally, adidas actively participated in the Natural Rubber Round Table hosted by FSC (Forest
Stewardship Council), fostering dialogue among stakeholders including tappers and their representatives
to address challenges and promote a more equitable, DCF supply chain.
─Timber-derived materials – specifically man-made cellulosic fibers (MMCFs) and paper packaging: To
steer our journey toward deforestation-free MMCFs and paper packaging (covering our total volume
globally), adidas joined CanopyStyle and Pack4Good in 2023, two initiatives from Canopy Planet setting
the framework for good sourcing practices to protect ancient and endangered forests. These
requirements were included in our Biodiversity and Ecosystems Policy. In collaboration with Canopy
Planet, adidas has embarked on a supply chain mapping exercise for MMCFs as part of our
deforestation-free supply chain targets, linked to our biodiversity strategy. We identified the Tier 4
suppliers (fiber producers) our suppliers source from, and we will continue to monitor risks and progress
toward our DCF 2030 targets. Through the MMCF SOP launched in 2025, we specified the criteria for
sourcing MMCF that includes only suppliers classified as ‘Dark Green’ in the Canopy Hot Button Report41
and using certified raw materials. This will assist in achieving our targets related to biodiversity but also
encourage the use of more environmentally friendly chemicals in manufacturing processes – aligned with
ZDHC parameters and our expectations shared in ESRS E2 – Pollution. For paper packaging, many
internal teams were once again consulted to better understand the volumes sourced, certifications used,
and country of origin of the material. In 2025, a cross-functional taskforce was created to address
challenges related to our deforestation and conversion commitments and future regulatory requirements.
A strategy to assess baseline and develop targeted action plans was shared. While our distribution
centers continue to optimize packaging sizes to minimize the consumption of packaging material and
improve transportation efficiency, adidas already included criteria related to the Biodiversity and
Ecosystems Policy into the new Request for Quotation (RFQ) for sourcing of packaging.
─Cotton: Since 2018, adidas has solely sourced third-party certified cotton (organic, recycled, and other
cotton standards). Most of the cotton in our portfolio is sourced through BCI, a program which uses a
mass balance approach and therefore is not traceable to the country of origin. Our measures in 2025
revolved around gaining more transparency on the country of origin through the supply chain mapping
exercise targeting the relevant upstream supply chain globally and diversifying our cotton portfolio in
order to ultimately have a verified country of origin for all cotton we source. Additionally, after signing up
for Traceable Better Cotton, aiming to start sourcing product-segregated cotton from BCI with traceability
up to the country of origin, we communicated our plans to our suppliers to solidify our commitment. We
also partner with the US Cotton Trust Protocol, which provides a chain of custody to the country of origin
for cotton. Finally, we developed our Responsibly Sourced Cotton SOP, which formalizes adidas’ guidance
on cotton sourcing and traceability. These actions are in line with our target to source 100% certified
cotton and the objectives of the newly developed Responsibly Sourced Cotton SOP.
─Innovation: We continuously explore innovative solutions that can replace current natural materials and
may reduce pressures on land and ecosystems, in alignment with the direction provided by our
Biodiversity and Ecosystems Policy. Scouting and piloting is done by our own innovation team as well as
through Fashion for Good (FFG), a multi-stakeholder platform for sustainable innovation in the fashion
industry. Our focus in 2025 was the exploration of new man-made cellulosic fibers that can replace
conventional viscose.
►SEE ESRS E5 – RESOURCE USE AND CIRCULAR ECONOMY
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41 ►CANOPYPLANET.ORG
─Collaboration and advocacy for nature: During 2025, we continued to contribute to several working
groups from Textile Exchange, BCI, and Leather Working Group, with the goal of generating knowledge
and ultimately creating industry standards to reduce impacts of raw materials and processes on
biodiversity, for example through improved agricultural practices. As a member of Textile Exchange’s
Regenerative Agriculture Outcome Framework working group, we contributed to the creation of a cross-
industry basket of indicators for regenerative agriculture and their piloting, which was updated in 2025.42
We are also an active member of the Fashion Pact Unlock Project, which tests the carbon accounting and
other environmental benefits of cotton, and Textile Exchange’s Leather, Cotton, Biosynthetics, and
Manmade Cellulosic Round Tables. These groups focus on advancing important topics in the sector,
such as improving traceability and developing environmental impact analyses and guidance for the
industry. In 2025, adidas joined leading voices at Climate Week NYC, participating in the Science Based
Targets Network (SBTN) event focused on corporate sustainability. Business leaders came together to
discuss why investing in nature is critical for achieving science-based targets and ensuring long-term
business resilience. Through the participation of adidas’ SVP Sustainability and ESG in the panel
discussion, adidas publicly reinforced its commitment to stepping up for nature, highlighting how
protecting ecosystems is integral to its sustainability vision and future-proofing of the business. This
activity followed the expectations shared in our Biodiversity and Ecosystems Policy and its
implementation, where adidas aims to support industry transformation through collaboration.
─Laying the Foundation for Science-Based Nature Targets: In 2025, adidas completed Steps 1 and 2 of
the Science-Based Targets for Nature process, which were submitted for external validation according to
the official framework processes. Step 1 involved conducting a materiality assessment to identify key
areas where our own operations and value chain interact with nature. In Step 2, we performed a scoping
exercise to prioritize locations and environmental pressures for target-setting, focusing on freshwater and
land systems.
►SEE ESRS E3-2 – ACTIONS AND RESOURCES RELATED TO WATER AND MARINE RESOURCES
Further measures to reduce negative impacts on biodiversity and ecosystems related to climate change,
pollution, water or resource use are described in detail in the relevant chapters, respectively:
►SEE ESRS E1-3 – ACTIONS AND RESOURCES IN RELATION TO CLIMATE CHANGE POLICIES
►SEE ESRS E2-2 – ACTIONS AND RESOURCES RELATED TO POLLUTION
►SEE ESRS E3-2 – ACTIONS AND RESOURCES RELATED TO WATER AND MARINE RESOURCES
►SEE ESRS E5-2 – ACTIONS AND RESOURCES RELATED TO RESOURCE USE AND CIRCULAR ECONOMY
Metrics and targets
E4-4 – Targets related to biodiversity and ecosystems
The targets described below support the implementation of our Nature Strategy, are embedded in our
policies, and reflect adidas’ commitment to address all material impacts, risks and opportunities (IROs).
Deforestation- and conversion-free (DCF) supply chains for high-risk commodities by 2030
adidas aims to have deforestation- and conversion-free (DCF) supply chains for all high-risk commodities
used in our products – specifically bovine leather, natural rubber, and timber – by 2030. This global target,
which excludes recycled leather and leather trims, is formalized in our Biodiversity and Ecosystems Policy
and related documentation. The target and its associated metrics are based on leading external
frameworks, including the Accountability Framework, and are informed by the EU Deforestation Regulation
(EUDR), the EU Biodiversity Strategy for 2030, as well as research from the World Resources Institute’s
Global Forest Review and WWF’s Deforestation Fronts.
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42 ► TEXTILEEXCHANGE.ORG
By focusing on eliminating deforestation and conversion from our supply chain, we support the objectives of
the Paris Agreement and align with the Kunming-Montreal Global Biodiversity Framework (GBF), contributing
to the protection of species and their habitats. We continuously monitor our performance by tracking
sourcing volumes, country of origin, and enhancing due diligence for suppliers in high-risk areas. Currently,
we obtain information about leather volumes by country of origin from our leather suppliers through self-
declaration. This information is then passed through a country deforestation-risk assessment carried out by
the Sustainability and ESG team. This DCF target addresses material impacts on biodiversity and
ecosystems, including those related to climate change, land-use change, and ecosystem services.
Additionally, it mitigates risks associated with rising raw material costs, regulatory non-compliance, and
potential increases in operational costs.
100% third-party certified wool
This target supports biodiversity by promoting responsible land management practices in our upstream
supply chain, primarily through adherence to recognized certification standards. It is aligned with the
Kunming-Montreal GBF expectations and is reflected in Standards for animal-derived materials. By
implementing this target, adidas aims to mitigate negative impacts from land-use change, address
dependencies on ecosystem services, and manage risks related to the availability and cost of raw
materials. As a global commitment, the target applies to all wool sourced by adidas, excluding recycled
wool. Progress is assessed annually by calculating the percentage of third-party certified wool sourced,
based on primary data, without reference to a base year. In 2025, adidas sourced 100% (2024: 100%)
certified wool, fully achieving the target and maintaining consistent performance compared to the previous
year.
100% third-party certified cotton
Since the end of 2018, 100% of the cotton we use has come from certified sources, including organic,
recycled, and other third-party certified cotton, such as cotton from the Better Cotton Initiative (BCI) and the
US Cotton Trust Protocol. This global target covers the entire volume of cotton used in our products and is
tracked annually through robust supply chain management processes. This target follows the expectations
of the Kunming-Montreal GBF. Our commitment to sustainable cotton sourcing directly supports our Nature
Strategy, Biodiversity and Ecosystems Policy, as well as our decarbonization goals. It also aligns with our
broader ambition to reduce environmental impacts related to resource inflows, by promoting responsible
agricultural practices, reducing pesticide and water use, and supporting farmer livelihoods.
►SEE ESRS E1 – CLIMATE CHANGE ►SEE ESRS E5 – RESOURCE USE AND CIRCULAR ECONOMY
This target is embedded in our Standard Operating Procedures (SOPs) and forms a key component of our
materials roadmap, which guides our transition to sustainably sourced renewable materials. By prioritizing
the use of virgin or recycled cotton that is certified and traceable, we aim to minimize land-use change,
protect ecosystem services, and contribute to circular economy principles. Progress toward this target is
monitored annually, and performance data for 2025 can be found in ESRS E5 – Resource Use and Circular
Economy. This approach not only advances our sustainability objectives but also helps mitigate risks
related to raw material availability, regulatory compliance, and reputational impact.
►SEE ESRS E5-4 – RESOURCE INFLOWS
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Basis for target setting: scientific evidence, frameworks, and stakeholder involvement
Our current targets were established based on best industry practices and recognized external frameworks,
which are underpinned by conclusive scientific evidence regarding the impacts of material sourcing on
biodiversity and ecosystems. In setting these targets, we have reviewed relevant scientific literature and
guidance, such as those referenced in the Accountability Framework and the EU Biodiversity Strategy for
2030, to ensure alignment with the latest research and regulatory expectations. No ecological thresholds
or allocation of impacts were applied, and no offsets were considered in the target-setting process. All
three targets are global in scope, focusing on adidas’ upstream value chain and its most significant nature-
derived materials, as previously outlined. Each target is allocated to the avoidance layer of the mitigation
hierarchy, prioritizing the prevention of negative impacts at the source.
Stakeholder engagement was an integral part of our target-setting process. We consulted with key internal
and external stakeholders, including suppliers, industry experts, and NGOs, to ensure that our targets are
both ambitious and practical, and that they reflect the expectations of our broader stakeholder community.
In addition to these core targets, further objectives related to biodiversity and ecosystems have been
developed as part of our climate strategy, water management, and resource use approaches. These
additional targets contribute to reducing negative impacts on biodiversity and ecosystems and are
described in detail in the target sections of the following chapters:
►SEE ESRS E1-4 – TARGETS RELATED TO CLIMATE CHANGE MITIGATION AND ADAPTATION ►SEE ESRS E3-3 – TARGETS RELATED TO WATER AND
MARINE RESOURCES ►SEE ESRS E5-3 – TARGETS RELATED TO RESOURCE USE AND CIRCULAR ECONOMY
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Resource Use and Circular Economy
The apparel and footwear industry uses significant amounts of resources. The consumption of finite
resources, and the intensive manufacturing processes negatively affect the environment. Equally, resource
outflow has negative impacts, including waste generation during production, and the disposal of products at
end-of-life. The lack of industry-wide circular solutions for end-of-life leads to waste generation and
highlights the need for systemic change. To mitigate such impacts and risks, adidas applies criteria for
responsible sourcing, follows product creation guidelines which mandate the use of recycled and
sustainably sourced renewable materials1, and provides waste guidelines for upstream activities and own
operations. Our circularity strategy provides a long-term vision and defines priorities for our actions and
engagement.
Targets
To address the multifaceted challenges of resource use and the circular economy, we have defined specific
targets to effectively steer these interconnected topics.
100%
third-party certified recycled polyester2
(achieved 99% since 2023)
This target applies to all polyester sourced
for adidas products.
100%
third-party certified cotton
(achieved since 2018)
This target applies to all cotton sourced
for adidas products.
Waste diversion
10%
of polyester to come from recycled
textile waste by 2030
2025 result
95%
2025 target
98%
The first products with textile-to-textile recycled
polyester are planned for 2026.
The target focused on having the waste from Tier 1
and Tier 2 suppliers diverted from landfills.
1 Textile Exchange refers to these as fibers produced from renewable resources, such as plants or agricultural waste, using practices that minimize
environmental impact throughout the lifecycle.
2 Where technically possible.
ANNUAL REPORT 2025
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Key actions and metrics
Our key actions
In 2025, adidas advanced its circularity agenda through three key actions that delivered strategic
and industry-wide impact:
─Published internal Circularity Position Paper to guide circular practices in our value chain
─Upskilled suppliers on textile waste segregation through a multi-stakeholder program
─Led multi stakeholder initiatives (e.g., T-REX) to steer systemic change in the industry
Materials used in adidas’ products and packaging in 20253
3 Our product portfolio includes apparel, footwear, as well as accessories. For further details, refer to the following section in E5-4: Explanatory notes to
our reported material use data.
4 This number is partly derived from primary data and partly based on LCA data.
ANNUAL REPORT 2025
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ESRS 2 – General disclosures
IRO-1 – Material impacts, risks and opportunities and their interaction with strategy and
business model
Resource inflows
Negative
impact
Actual
n.a.
Upstream
The apparel and footwear industry is heavily dependent on the use of resources, both renewable and
non-renewable, which leads to adverse environmental impacts.
Resource inflows
Risk
n.a.
Mid-term
Upstream
For adidas, the risk with regard to resource inflows could be related to:
─Potentially higher costs and/or unavailability of materials.
─Upcoming regulations like ESPR (Ecodesign for Sustainable Products Regulation), which may require
the use of materials (i.e., high-recycled content) that could become scarce.
Resource outflows
Negative
impact
Actual
n.a.
Downstream
Currently, the lack of a circular economy ecosystem and infrastructure in the apparel and footwear
industry means that most products have no circular end-of-life solution and end up as waste.
Resource outflows
Risk
n.a.
Long-term
Upstream,
downstream
For adidas, the risks with regard to resource outflows could be related to:
─High uncertainty in the regulatory developments in different countries.
─Potentially inconsistent approaches to circular product definition and related infrastructure (e.g.,
sorting and recycling infrastructure), which could lead to operational challenges for a globally
operating company such as adidas (e.g., when defining circular product design guidelines).
─Cost of establishing a circular infrastructure for apparel and footwear is to be partly paid for by
brands (e.g., upcoming Extended Producer Responsibility (EPR) legislation in several countries).
Waste
Risk
n.a.
Mid-term
Upstream
For adidas, waste related risks could be related to:
─Potentially higher operational costs for our suppliers, as stricter waste management requirements
are imposed on them (e.g., the need for improved processes for waste separation, handling,
transportation, disposal, and/or treatment).
IRO-1 – Resource use and circular economy and material impacts, risks and opportunities (IROs)
Material matter
Material IRO
Classification
Time horizon
Value chain
Description
Impact, risk and opportunity management
E5-1 – Policies related to resource use and circular economy
adidas governs resource use and circular economy through policies, guidelines, and standard operating
procedures (SOPs) across the entire value chain. These policies anchor our strategy in the business and
ensure we steer the organization toward a lower impact on the environment. Our key resource inflows are
regulated by material-specific SOPs and by product creation guidelines. Our key priority is to reduce our
dependency on virgin fossil-based materials by increasing the share of recycled and sustainably sourced
renewable materials.43 Resource outflows and waste are also covered by several policies and guidelines
implemented by our manufacturing partners (as most impacts occur upstream). However, guidance on
circular product design and product end of life is still under development. This is due to a lack of
technologies and infrastructure that can effectively sort, pre-process, and recycle different types of products
at scale. Therefore, we are currently focusing our work in the field of circularity on understanding the full
ecosystem needed to enable a transition from a linear to a circular value chain.
►SEE ESRS E5-2 – ACTIONS AND RESOURCES RELATED TO RESOURCE USE AND CIRCULAR ECONOMY
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43 Textile Exchange refers to these as fibers produced from renewable resources, such as plants or agricultural waste, using practices that minimize
environmental impact throughout the lifecycle.
Circularity Position Paper
(RI, RO, W)
Provides a long-term vision and framework and
sets priorities for engagement.
Entire value chain
SVP Sustainability
and ESG
UNEP and Ellen
MacArthur
Foundation
n.a.
Available for all
employees
Sustainable Ingredient
Definition SOP
(RI)
Sets the framework for sustainable ingredients
for adidas products, detailing the lifecycle and
roles and responsibilities.
Entire value chain
SVP Product
Development &
Sourcing
Preferred Fiber and
Materials Matrix
from Textile
Exchange
n.a.
Available for all
employees
Responsibly Sourced
Materials SOPs
(RI)
Includes multiple SOPs for Synthetics, Natural
Rubber, Cotton, Man-made Cellulosic Fibers,
and Animal Derived Materials.
States the intention to use recycled and
responsibly sourced materials where technically
possible, sets certification requirements and
governance framework
Upstream
(Tier 1 and Tier 2
suppliers)
SVP Product
Development &
Sourcing
Textile Exchange
standards: Global
Recycling Standard,
Recycled Content
Standard, Forest
Stewardship
Council, Better
Cotton. Global
Organic Textile
Standard, Organic
Content Standards,
and US Cotton Trust
Protocol
n.a.
Available for all
employees
Standards on animal-derived
materials
(RI)
Sets the requirements for sourcing of animal-
derived materials and rules out sourcing of
endangered or threatened species
Upstream
SVP Sustainability
and ESG
World Organization
for Animal Health,
IUCN, Leather
Working Group,
Materials Matter
Standard (Textile
Exchange)
n.a.
Accessible on
corporate website
Environmental Guidelines
(W)
Describes ways to prevent pollution, manage
and control environmental impacts, and avoid
depletion of natural resources; includes waste
management
Upstream
(Tier 1 and Tier 2
suppliers)
SVP Product
Development &
Sourcing
n.a.
adidas suppliers
Accessible on
corporate website
Waste Management
Guidelines
(W)
Defines a waste management process to prevent
pollution and depletion of natural resources;
outlines connected goals and objectives; guide
suppliers to select waste co-processing partners
and waste-to-energy technologies to be
compliant
Upstream
(Tier 1 and Tier 2
suppliers)
SVP Product
Development &
Sourcing
Reference the EU
Waste Framework
Directive
n.a.
Directly shared with
suppliers
1 Material matters addressed by policies and guidelines are abbreviated as follows:
RI – Resource Inflows
RO – Resource Outflows
W – Waste
E5-1 – Policies related to resource use and circular economy
Policies1
Content
Scope
Senior level
responsible
Third-party
standards/
initiatives
Stakeholder
consideration
Availability
Going forward, we will continue to adapt, widen, and substantiate our approach to circularity and resource
use. Our approach is based on science but it will also be influenced by emerging industry standards and
regulatory requirements that are becoming more concrete, particularly within the EU and in relation to its EU
Strategy for Sustainable and Circular Textiles. We expect these regulatory requirements to become clearer
in the coming years, which will help eliminate some of the ambiguity within our industry and set a common
baseline for every brand and market participant to adhere to.
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E5-2 – Actions and resources related to resource use and circular economy
Our actions regarding resource use and circular economy are in line with our Circularity Position Paper. We
rely on internal resources (mainly from the Sustainability and ESG Team) to coordinate and monitor our
actions. Topic owners and teams implementing the measures track their effectiveness. Unless explicitly
stated otherwise, all actions are ongoing.
►SEE ESRS E5-3 – TARGETS RELATED TO RESOURCE USE AND CIRCULAR ECONOMY
Circularity strategy and resource use
In 2025, we launched our Circularity Position Paper, which outlines our updated strategy. It reflects our
present status, the actions we are undertaking, and the direction we are heading. We recognize that both
our internal capabilities and the external landscape, encompassing regulations, infrastructure, and
consumer expectations, are evolving rapidly. Therefore, this paper is not static, but a living framework that
will be evolved and strengthened as our circularity practices advance. We are convinced that sharing our
position paper internally lays the groundwork for integrating circular practices throughout our value chain
and steering our shift from a linear to a circular ecosystem.
Digital enablement: To ensure compliance with evolving regulations and to enable sustainable product
development, we continued to invest in ESG regulatory readiness and traceability technology enablement
efforts. These globally implemented digital solutions enhance transparency and accuracy in material and
product data, supporting both internal decision-making and external reporting requirements.
Transition to recycled polyester: Polyester is the most widely used material in our materials portfolio.
Therefore, transitioning to recycled polyester is a significant lever to lower our impact on resource use. By
2023, we had already reached 99% recycled polyester in our products, excluding trims. This brought us very
close to our target of replacing all virgin polyester with recycled polyester, where technically feasible.
Therefore, in 2024, we set ourselves a target aiming for 10% of our polyester volume to come from recycled
textile waste by 2030, which reinforces our commitment to driving industry change. In 2025, we rolled out
the adoption strategy to implement textile-to-textile recycled polyester in the seasons from 2026 onward.
Sourcing certified cotton: Since the end of 2018, 100% of the cotton we use has come from certified
sources, including organic, recycled, and other third-party certified cotton. We are collaborating with key
suppliers to increase the use of mechanically recycled cotton from our own post-industrial waste materials.
Our Responsibly Sourced Cotton SOP, adopted in 2025, outlines our procurement expectations and
evaluates environmental and social impacts.
►SEE ESRS E4-3 – ACTIONS AND RESOURCES RELATED TO BIODIVERSITY AND ECOSYSTEMS
Continued use of recycled EVA and rubber: We continue to increase recycled content in EVA and rubber
components, while investing in alternative materials to enhance performance. We specifically tested post-
consumer rubber waste from France to validate if it reaches the performance criteria required for
application in our products. We are committed to sourcing certified natural rubber that meets our
standards, supported by our new Responsibly Sourced Natural Rubber SOP implemented in 2025.
►SEE ESRS E4-3 – ACTIONS AND RESOURCES RELATED TO BIODIVERSITY AND ECOSYSTEMS
Animal-derived materials: These accounted for 5% of our total materials in 2025. All our leather, down and
wool used for our products are certified through recognized standards listed above in the policy table.
►SEE ESRS E4-3 – ACTIONS AND RESOURCES RELATED TO BIODIVERSITY AND ECOSYSTEMS
Innovation: We continue to explore innovative materials that reduce environmental impacts, with a
particular emphasis on bio-based solutions and advancements in footwear materials through collaborative
initiatives. Our commitment to footwear innovation has led us to join the Next Stride project with Fashion for
Good (FFG) in 2025. This partnership aims to research bio-based solutions for our footwear soles, paving
the way for a potential transition to renewable feedstock options for footwear materials.
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Circular economy
At adidas, we define circularity as maintaining the value of products and materials at the highest level for
as long as possible. This definition aligns with that of the United Nations Environmental Program (UNEP), as
outlined in their report, ‘Sustainability and Circularity in the Textile Value Chain – A Global Roadmap.’ By
establishing clear guidelines and adapting to emerging regulations linked to the EU Strategy For
Sustainable and Circular Textiles, we aim to promote circular practices in the sportswear industry to reduce
environmental impacts and support long-term sustainability.
─Quality and Durability: As a sportswear company, product performance and quality are vital for our
success. We continuously test apparel and footwear throughout development and production, aligning
with ISO standards and using testing methods such as DIN, GB, ASTM, and SATRA. All products and
materials undergo lab testing, and we validate performance with athletes. We also ensure consistent
production quality by providing a framework for our partners and conducting annual audits for
compliance.
─Recyclability: As part of the Made To Be Remade (MTBR) initiative, adidas has developed end-of-life
solutions for a dedicated range of products, with the objective that once returned, the product
components can be remade into something new. The first product was a running shoe called
Futurecraft.Loop, which was launched in 2019, which then led to a broader MTBR collection by 2023.
Based on the experiences from this initiative, we understand that effective circular services require
collaboration across the value chain. Therefore, in 2025, we focused on supporting multi-stakeholder
initiatives to create a circular ecosystem for the apparel and footwear industry, specifically the T-REX
project, and industry research projects from FFG.
Circular ecosystem
We recognize that achieving a circular economy requires systemic change and collaboration across the
industry. In 2025, we advanced several multi-stakeholder initiatives:
─T-REX Project successfully completed: T-REX is a publicly funded EU research project aimed at creating
a blueprint for how household textile waste can be sorted and recycled in a closed loop across Europe.
The three-year initiative, led and coordinated by adidas, brought together 13 key participants from the
entire value chain. After its successful completion, the project generated insights that now shape our
circularity strategy and industry advocacy. It revealed the urgent need for integrated pre-processing and
automated sorting to improve recyclability and feedstock quality, as well as for refining chemical recycling
technologies to match the quality of virgin materials. The project also produced clear, science-based
technical guidelines for design to improve recyclability, focusing on using recyclable main materials and
reducing parts that cause contamination. Finally, a techno-economic assessment underscored the need
for stronger policies and investment into better infrastructure to scale textile-to-textile recycling across
Europe. These findings inform adidas’ ambition to drive systemic change in the industry. Looking ahead,
adidas will continue to build on the insights from T-REX through future projects and collaborations and
plans to work closely with industry stakeholders and the EU Commission to shape future regulations.
─Through our partnership with the Fashion for Good innovation platform, we are contributing to the
development of frameworks and guidelines to advance circularity in the industry:
• Enabling textile waste traceability through the Tracing Textile Waste Project, also co-led by Textile
Exchange: A major challenge in scaling the use of textile waste for recycled content is the lack of
traceability for certifications such as the Global Recycled Standard (GRS) and Recycled Content
Standard (RCS). Currently, tracking textile waste is manual and fragmented, leading to difficulties in
data consolidation and sharing. This issue is increasingly critical as brands and regulators demand
transparency to ensure material authenticity. To standardize data collection and sharing across the
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supply chain by validating a new Reclaimed Material Declaration Form (RMDF), adidas participated in a
project involving three pilots – two for post-industrial waste and one for pre-consumer waste. This effort
led to the development and adoption of the RMDF for GRS and RCS certifications44. adidas plans to
utilize the RMDF for our recycled content materials in the future to verify the feedstock source and type.
• adidas participated in the Closing the Footwear Loop project, aimed at addressing systemic challenges
to circularity in the footwear sector. The ongoing project focuses on overcoming barriers caused by
fragmented and limited collection and recycling infrastructure in the EU as well as the absence of
harmonized standards. We are convinced that by participating in this project, adidas has contributed to
creating transparency around current post-consumer footwear sorting activities in the EU and developing
industry insights from collaborative trials on end-of-life processes and impact assessment. The
outcomes of this project inform adidas’s approach to footwear circularity.
• The ReWear project, with adidas as a key partner, successfully concluded as a continuation of the
Sorting for Circularity Europe initiative. This phase focused on the flows of rewearable textiles,45
providing crucial insights into the industry’s understanding of product pathways after consumer
disposal. The project mapped the conditions and potential end destinations for rewearable textiles and
analyzed the role of regulations and infrastructure in improving the flow of textiles into rewear value
chains.
─The BIOTEXFUTURE innovation space program, funded by the German Federal Ministry of Research,
Technology, and Space (BMFTR) and co-led by adidas AG and RWTH Aachen University, concluded in
December 2025 after five years of exploring the shift from petroleum-based to bio-based textiles. By
participating in ten projects, adidas contributed to the program's key material innovations: a high-
performance bio-based polyamide (PA 4.10) with improved stretch and breathability, a PFAS-free water-
repellent finish, and a bio-based insulation material with enhanced warmth-to-weight efficiency. These
innovations are being tested in garments and on athletes and are expected to be integrated into future
adidas product ranges.
─adidas is participating in the Textile Loop pilot under CIRPASS-2, led by Avery Dennison’s atma.io
platform, to advance the implementation of Digital Product Passports (DPPs) in its value chain. The pilot
involves creating unique digital IDs for textile products, tracking them through downstream circular
services for sorting and recycling, and enabling data exchange among all relevant stakeholders. For
adidas, this engagement provides a framework for ensuring compliance with upcoming EU Ecodesign for
Sustainable Products Regulation (ESPR), which includes Digital Product Passport (DPP) requirements to
improve supply chain transparency, enhance the traceability of materials and product lifecycles, and
enable more scalable circular business models.
─In 2025, adidas contributed to the development of the Global Circularity Protocol for Business (GCP)
Version 1, led by the World Business Council for Sustainable Development (WBCSD), as well as to the
Circular Transition Indicators (CTI) for fashion. These initiatives aim to establish a science-based, cross-
industry methodology for measuring, comparing, and disclosing progress on circular economy strategies.
By participating alongside leading companies from multiple sectors, adidas helps shape a standardized
framework that enables more consistent evaluation of material flows, circular business models, and
resource efficiency. This engagement strengthens adidas’s commitment to transparency and our belief
that achieving circularity requires harmonized standards, a scientific approach, and collective action, and
positions the company at the forefront of harmonized industry practice.
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44 ► TEXTILEEXCHANGE.ORG.
45 ► REPORTS.FASHIONFORGOOD.COM.
Circular services
At adidas, we are convinced that Circular Business Models (CBMs) strengthen consumer connections
beyond sales, promoting product longevity and encouraging sustainable behaviors. We have learned from
previous pilots, such as in-store sneaker cleaning, rental, and product take-back programs over the past
decade, that a global approach to CBMs is not practical as consumer expectations and cultural attitudes
vary by market. We are refining our approach to circular services to focus on impactful solutions that reduce
waste and extend product life. These learnings are consolidated into an internal guidance document that
we leverage to work with local teams to develop tailored solutions. This decentralized approach helps us
remain relevant and ready to scale successful initiatives.
Supply chain waste management
Building on the progress achieved through our global waste reduction efforts, we have continued to advance
waste disposal management across our supply chain since 2021. In 2025, we further strengthened our
waste-handling process, including upskilling facilities to work with credible waste treatment vendors,
collaborating with partners across industries to enhance waste segregation practices and improve data
accuracy across various waste streams.
To advance circularity within our supply chain, we continued to review and implement our Waste
Management Guideline, ensuring alignment with evolving industry expectations. We also expanded
collaboration with partners in regions where waste management infrastructure is still developing. This
includes our participation in the Circular Fashion Partnership (CFP) program, led by the Global Fashion
Agenda, in Cambodia and Indonesia, which brings together brands, manufacturers, and recyclers to
transform post-industrial textile waste into new recycled materials. This initiative aims to enhance textile
waste management activities in supplier facilities, support proper waste segregation for the recycling
process, and strengthen local recycling systems.
In 2025, we conducted an internal consultation with selected Tier 1 and Tier 2 suppliers based on their
geographical locations to learn about the current gaps and challenges in transitioning from a linear to a
circular waste management model. The insights and ideas gathered through these workshops have
provided valuable input that has helped to shape our strategic roadmap toward 2030. Building on the
learning from these workshops, we will continue our collaborative efforts with industry stakeholders to
support the establishment of recycling systems for textiles.
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Metrics and targets
E5-3 – Targets related to resource use and circular economy
To address the multifaceted challenges of circular economy, resource use, and waste management, and to
effectively steer our various efforts across these interconnected topics, we have defined specific targets
related to these issues. For all targets set, we rely on scientific evidence and upcoming regulatory
frameworks, such as the Ecodesign for Sustainable Products Regulation (ESPR), where they exist, and we
are guided by the objectives outlined in our Circularity Position Paper. These targets are set by evaluating
industry availability of resources and infrastructure that our suppliers have access to. The targets are then
benchmarked against industry practices and validated during informal interactions with stakeholders.
─10% of polyester to come from recycled textile waste by 2030: This target aims to increase closed-loop
recycled polyester, shifting material usage from plastic bottles to textile waste as feedstock, minimizing
the use of virgin raw materials, thereby enhancing our commitment to circularity. We are convinced that
this initiative also positions us to meet anticipated regulatory requirements for responsible end-of-life
management of our products. The first products with textile-to-textile recycled polyester are planned for
2026. The target applies to all polyester used in our products and aligns with the objectives of the
Responsibly Sourced Material SOPs.
─Our target to use 100% recycled polyester wherever technically possible by the end of 2024 has been
maintained moving forward for all polyester used in our products, ensuring we do not revert to using
virgin polyester. With this commitment and achievement, our share of recycled polyester adoption has
been exceeding the level of recycled polyester in global polyester production for several years46 (see the
graph below). The integrity of the recycled materials used is certified by recognized third-party
certifications such as the Global Recycled Standard (GRS) and the Recycled Claim Standard (RCS). These
certifications guarantee a robust chain of custody and minimize the risks of unauthorized mixing or
swapping of materials. This target is specific to the increase of circular material use and the
minimization of virgin raw materials, and is aligned with the objectives of the Responsibly Sourced
Material SOPs.
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46 Source: Textile Exchange Materials Market Report 2025; 2025 value for global apparel industry is an estimate.
Recycled polyester share of total polyester use
─100% third-party certified cotton: This target is aligned with the Sustainably Sourced Renewable
Materials standards of Textile Exchange. Since the end of 2018, 100% of the cotton we use has come
from certified sources, including organic, recycled, and other third-party certified cotton. The target covers
the total volume of cotton sourced globally and is tracked on a yearly basis. In 2025 we met this target
again. For detailed data on the 2025 performance, please refer to the Resource inflows section
below. This target is specific to sustainable sourcing and use of renewable resources and is aligned with
the objectives of the Responsibly Sourced Material SOPs.
─Deforestation and conversion free (DCF) bovine leather supply chain by 2030: This target is specific to
sustainable sourcing and use of renewable resources, and is aligned with the objectives of the
Standards on animal-derived materials.
►SEE ESRS E4-4 – TARGETS RELATED TO BIODIVERSITY AND ECOSYSTEMS
─98% of waste from Tier 1 and Tier 2 suppliers diverted from landfills by 2025: This target is specific to
waste management. It was set in 2021 based on industry benchmarks, and is aligned with our waste
management guidelines and waste diversion program to assist our suppliers in enhancing waste
segregation during manufacturing, reuse of non-hazardous waste, and focusing on recycling or waste-to-
energy. Expanding the program globally resulted in a collective landfill diversion rate of 95% among
enrolled suppliers in 2025. The slight change from last year’s 96% reflects the onboarding of new
suppliers, which naturally adds complexity. Despite this, overall performance remains strong, and the
program continues to scale effectively. This target refers to the recycling and waste-to-energy layers of
the waste hierarchy, and is aligned with the objectives of the adidas Environmental Guidelines and Waste
Management Guidelines.
As explained earlier, the circular ecosystem in the apparel and footwear industry is in the early stages of
development. Industry average durability and recyclability metrics and standards are still under
development. Product design guidelines for these important areas can only be provided, and targets related
to resource outflows can only be set once such standards are in place, which are currently under
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discussion in different research and policy forums related to the EU Product Environmental Footprint
Category Rules (PEFCR) and the Ecodesign for Sustainable Products Regulation (ESPR).
All of the above targets are voluntary and not mandated by law.
E5-4 – Resource inflows
We continued to increase the share of recycled and sustainably sourced renewable materials. In 2025,
60% of the materials used for our products and packaging were recycled or sustainably sourced renewable
materials, contributing to our future ambitions and targets (2024: 56%).
Materials used in products: adidas’ product portfolio includes apparel, footwear, as well as accessories.
We outsource most of our production to independent manufacturing partners and do not purchase any
significant amounts of materials or components of our products directly. We keep records of the materials
used in our products in our systems. For this information, we rely on receiving accurate data from our
suppliers.
Materials used in packaging: Products are packaged in the factory for protection, such as against humidity
and dust. The packaging material is either paper-based (i.e., shoe boxes) or recycled low-density
polyethylene (rLDPE) (i.e., polybags for apparel and some types of accessories). Additionally, paper-based
transport packaging (i.e., cartons, corrugate) is used to ship products.
Our packaging is 97% paper-based (2024: 97%), with 85% made from recycled content (2024:
85%). Plastic packaging represents 3% of our packaging materials (2024: 3%), of which 98% is recycled
LDPE (2024: 83%). Several of our distribution centers have started to implement reusable transport
packaging and continue to reduce packaging volume by optimizing box sizes and the number of shipments.
However, we are not yet able to report quantitative information on the impact these initiatives have on
packaging reduction.
Other resource inflows: We currently still lack reliable data, except for water withdrawal during production
processes, with more information available in the following section.
►SEE ESRS E3 – WATER AND MARINE RESOURCES
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Materials used in adidas products and packaging in 20251
2025
2024
Tonnes
% of total
Tonnes
% of total
Biological materials2
Paper and cardboard
145,655 0
21%
128,174
22%
Cotton
64,505
9%
54,883
9%
Leather
31,304
5%
24,691
4%
Natural rubber
10,896 0
2%
9,373
2%
Other biological materials
3,876 0
1%
1,899
0%
Total biological materials
256,236 0
37%
219,020
37%
Thereof, sustainably
sourced3
242,544
95%
188,918
86%
Technical materials4
Polyester
156,917
23%
130,365
22%
Synthetic rubber
98,098
14%
67,810
12%
EVA
51,751
7%
48,931
8%
Polyurethane (PU)
20,395
3%
24,478
4%
Other technical materials
107,049
16%
97,538
17%
Total technical materials
434,210
63%
369,122
63%
Thereof, sustainably
sourced5
173,114
40%
141,388
38%
Total materials inflows
690,446
100%
588,142
100%
1 Details are provided in the explanatory notes to our reported material use data.
2 Biological materials are materials derived from renewable biological sources of plant or animal origin, including both virgin and recycled materials.
3 The percentage of sustainably sourced materials represents the proportion relative to the total amount of biological materials. The definition of ‘sustainably
sourced biological materials’ can be found in the description below the table.
4 Technical materials include virgin and recycled materials.
5 The percentage of sustainably sourced materials represents the proportion relative to the total amount of technical materials. The definition of ‘sustainably
sourced technical materials’ can be found in the description below the table.
For the definition of sustainably sourced materials, the cascading principle has been applied. In addition,
we use the following certifications for sustainably sourced materials:
─For biological materials:
▪For cotton: Better Cotton (mass balanced), US Cotton Trust Protocol, Organic Content Standard (OCS),
Global Organic Textile Standard (GOTS), Global Recycled Standard (GRS), Recycled Claim Standard
(RCS)
▪For leather: Leather Working Group (LWG)
▪For wool: Responsible Wool Standard (RWS)
▪For down: Responsible Down Standard (RDS)
─For technical materials:
▪Global Recycled Standard (GRS), Recycled Claim Standard (RCS)
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Secondary (recycled) materials used in adidas products and packaging in 20251
2025
2024
Tonnes
% of total
material type
Tonnes
% of total
material type
Secondary (recycled) materials
Recycled polyester
155,309
99%
129,388
99%
Recycled paper and cardboard
123,078
85%
108,307
85%
Other recycled materials
17,824
17%
12,048
12%
Total secondary materials2
296,212 0
43%
249,743
42%
1 Details are provided in the explanatory notes to our reported material use data.
2 Percentage relates to total material inflows presented in the above table.
Recycled textile materials are GRS- or RCS-certified. For EVA, rubber, and non-textile materials, we partially
rely on supplier self-declaration, as certification is not yet available for some of the recycling processes
used in footwear production. We do not purchase or track components or intermediary products, and
therefore, the reuse of such components or intermediary products is not a business situation we
encounter. For packaging materials, data are based on LCA data.
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Explanatory notes to our reported material use data
The presented product and packaging material use data are based on the following calculation
methodologies and sources:
─Materials used in adidas products: Use data are based on Spring/Summer 2025 and Fall/Winter 2025
seasons.
─Materials used for packaging: Due to the decentralized nature of our distribution, it is difficult to collect
primary data for packaging. Packaging material consumption is calculated based on 2025 sales data
(volume by channel) and average packaging weights per product division (based on primary data
collected in 2021). The ratio between virgin and recycled materials for polybags is based on primary
data collected in 2021, and recycled content for cardboard is based on LCA data (EU-28: Corrugated
board 2018). The average weights for secondary (transport) packaging are based on PEFCR. Due to the
fact that we use recognized and widely applied data sources and methodologies, we consider our
assumptions and calculations to be solid. However, we aim to start collecting primary packaging data
for key parts of the supply chain in the upcoming years to improve accuracy in the future.
─Polyester, cotton, polyamide, wool, man-made cellulosic fibers, down as well as leather: Material use is
derived from actual consumption data in the bill of materials as reported by Tier 1 suppliers and the
material composition information provided by our Tier 2 suppliers. Due to the complexity stemming from
the product construction of leather-based footwear, we perform control checks on the weight of leather
used to calculate the final leather consumption.
─Polyester trims: Material use is reported in ‘Other synthetic materials.’
─Rubber, EVA, PU, and other synthetic polymers for footwear bottom parts: Material use is calculated by
extrapolating from data reported by Tier 1 and Tier 2 suppliers in the countries of origin, who account
for 90% of the total footwear production volume.
─Silica (as part of other technical materials): Some country-specific material consumption volume is
interpolated by applying a ratio based on the already available primary data gathered.
E5-5 – Resource outflows
There is currently no industry standard that defines circular economy principles for designing apparel and
footwear products. Nonetheless, we are already following an approach that aims to consider sustainable
resource use where possible. We will eventually adjust our approach when the expected adoption of the
ESPR and other similar regulations provides more clarity on definitions and standards.
Durability, repairability, and recyclability are neither legally defined nor standardized in the apparel and
footwear industry yet. One reason for this is the wide variety of product types and product purposes in
scope. As part of the EU’s PEFCR and ESPR, several multi-stakeholder working groups are working to define
standards in these areas. We plan to align our approach with regulations and standards as soon as they
become available.
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─Durability: While there are currently no industry average metrics or standards in place that determine
durability of apparel and footwear, we are constantly testing the quality and performance of our products.
More information on our testing protocols can be found within this chapter.
►SEE ESRS E5-2 – ACTIONS AND RESOURCES RELATED TO RESOURCE USE AND CIRCULAR ECONOMY
─Repairability: There is no average metric or standard for repairability in the apparel and footwear industry.
Most of our apparel products can be repaired by consumers themselves or by a tailor. Our footwear can
be repaired by shoemakers, however, some of our technical footwear products and sports accessories
may not be repairable due to their design or construction. In case of defective products, we provide the
legally mandated warranty. We have also piloted consumer repair services to understand how we can
better serve consumers in this area.
►SEE ESRS E5-2 – ACTIONS AND RESOURCES RELATED TO RESOURCE USE AND CIRCULAR ECONOMY
─Recyclability: As mentioned in earlier sections, recycling technology for apparel and footwear is in the
early stages of development. Due to the lack of a standardized definition of recyclability and the
respective infrastructure (collecting, sorting, and recycling), it is not possible to claim recyclability for our
products at this time. There is currently no established process for the treatment of textile waste in the
EU. While some countries have initiated efforts in this area, current practices vary significantly from
country to country. We continuously monitor developments in this area and remain committed to
supporting the creation of a circular ecosystem.
As for the packaging materials, we use only mono-material packaging for our plastic and paper packaging,
which is fully recyclable. The LDPE polybags used for apparel and some types of accessories are also
recyclable.
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EU Taxonomy
Reporting scope for fiscal year 2025
In 2020, the EU introduced the EU Taxonomy Framework (‘Taxonomy’), a classification system to determine
the environmental sustainability of economic activities. The Taxonomy was amended in 2023 and
subsequently revised and simplified in 2025. The updated Delegated Act was adopted by the European
Commission in July 2025, and by the Council and the European Parliament in January 2026. adidas has
been applying the updated Delegated Act. In line with the Taxonomy requirements, we are obligated to
disclose the share of our Taxonomy-eligible and Taxonomy-aligned turnover (net sales), capital expenditure
(‘CapEx’) and operating expenses (‘OpEx’) for the following six environmental objectives:
• Climate change mitigation
• Climate change adaptation
• Sustainable use and protection of water and marine resources
• Transition to a circular economy
• Pollution prevention and control
• Protection and restoration of biodiversity and ecosystems.
Determination of Taxonomy-eligible activities
Due to the adidas core business activities, i.e., the manufacturing of textiles and footwear as well as the
wholesale and retail sale thereof, remaining out of the scope of the Taxonomy, we have no turnover-
generating Taxonomy-eligible activities to report on for 2025. Unchanged to prior years, Taxonomy-eligible
activities at adidas were identified only in connection with the environmental objective of climate change
mitigation (‘CCM’). These activities are related to our climate strategy actions and form part of our own
operations decarbonization lever.
►SEE ESRS E1 – CLIMATE CHANGE
With the adoption of the revised Delegated Act in January 2026, non-financial undertakings may report
cumulated activities that fall below a 10% materiality threshold of the respective denominator KPI as non-
material, using the simplified reporting approach. This reduces the scope of mandatory disclosure for
adidas to a single activity:
─CCM 7.7 Acquisition and ownership of buildings (including building leases)
Assessment of Taxonomy alignment of Taxonomy-eligible activities
Since the identified Taxonomy-eligible activities all relate to the purchase of output from potentially
Taxonomy-aligned activities, the Taxonomy alignment assessment needs to be performed at the output,
i.e., production level and is dependent on acquiring the relevant information from the respective third-party
suppliers. Due to the expected time and resource investment necessary for assessing all individual projects
and items contributing to the eligible activities, we prioritized the assessment of those individual activities
that were most material in terms of value and/or were more likely to be Taxonomy-aligned due to the
availability of the necessary information.
CCM 7.7: Eligible activities include the leasing of warehouses/distribution centers, own retail stores, and
corporate offices. The applicable substantial contribution and ‘do no significant harm’ (DNSH) criteria are in
connection with the primary energy demand of the analyzed building and the performance of a robust
climate risk and vulnerability assessment for the building location, respectively. The substantial contribution
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criterion evidence that is most relevant for adidas in this regard is the existence of an Energy Performance
Certificate (EPC) class A. Many of the eligible building leases are located outside of the EU, where this EU-
centric certification is not common practice and other standards and frameworks, which are not mentioned
in the Regulation, are typically used (e.g., LEED certification). In line with the generally low share of
available non-residential buildings meeting these energy performance standards across our markets, only a
few eligible leases in 2025 fulfill this criterion. This is particularly the case for our eligible retail leases as
many retail stores are mall-based, where adidas has only very limited influence on the building design and/
or (re)development. In addition, certain eligible retail lease locations are heritage sites for which it is not
possible to obtain EPC class A certification. The climate risk analysis was performed on a case-by-case
basis using different information sources, such as input from landlords and/or our insurance provider. In
addition, the insights related to our climate resilience analysis were taken into account to perform the
DNSH assessment for several eligible buildings. For the majority of the assessed building leases not all
information was available for a complete and conclusive assessment exactly as per the methodology and
scope prescribed by the regulation. However, several eligible lease contracts – covering a smaller
warehouse in Dubai as well as multiple retail and corporate office locations across Europe – meet the
substantial contribution criterion.
►SEE ESRS E1 – CLIMATE CHANGE
Minimum safeguards
The minimum safeguards form part of the Taxonomy alignment criteria. Their purpose is to clarify that
eligible economic activities can only be environmentally sustainable when performed in circumstances that
are compliant with social norms and certain minimum governance standards. In this context, companies
must implement appropriate processes and procedures to avoid negative influences on or violations of the
following four specific topics: human rights (including labor rights), taxation, corruption/bribery, and fair
competition.
adidas has taken a company-wide approach to meeting the minimum safeguards covering human rights,
taxation, corruption/bribery, and fair competition. Our subject matter experts in the areas of social and
environmental affairs, tax, and legal determined the extent to which the mentioned governance standards
and policy frameworks are already embedded in existing adidas policies (e.g., adidas Human Rights Policy)
and standard operating procedures (e.g., adidas Fair Play Code of Conduct), as well as in its compliance
management system.
As in 2024, our assessment for the fiscal year 2025 confirmed that Taxonomy-eligible activities were
performed in a manner that is fully compliant with minimum safeguards. We maintain rigorous internal
policies and oversight mechanisms to ensure ongoing compliance with these standards.
More information on our compliance with the respective criteria is included in this Annual Report:
─Human rights and labor rights
►SEE ESRS S1 – OWN WORKFORCE ►SEE ESRS S4 – CONSUMERS AND END-USERS
─Taxation
► SEE RISK AND OPPORTUNITY REPORT
─Corruption/bribery
►SEE RISK AND OPPORTUNITY REPORT ►SEE ESRS G1 – BUSINESS CONDUCT
─Fair Competition
► SEE RISK AND OPPORTUNITY REPORT
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Determination and reporting of Taxonomy KPIs
Turnover KPI: Turnover as per the Taxonomy (denominator of the turnover KPI) is equivalent to our net sales
disclosed in the consolidated financial statements in this report. In 2025, the turnover amounts to
€ 24,811 million (2024: € 23,683 million). The identified eligible activities at adidas were not turnover
generating, resulting in a numerator value of ’0’ and, accordingly, a turnover KPI of 0% eligible turnover.
►SEE INCOME STATEMENT
CapEx KPI: In comparison to the disclosed CapEx value of € 477 million in this report, the Taxonomy
definition of CapEx results in a total value of € 1,158 million (denominator of the CapEx KPI) at adidas
(2024: € 1,767 million). The denominator contains, in accordance with the definition of the Taxonomy and
as disclosed in this report, additions to buildings, technical equipment and machinery, other equipment,
furniture and fixtures, right-of-use assets, and other intangible assets, before depreciation, amortization,
and remeasurements. To calculate the numerator of the CapEx KPI, we analyzed the additions in relation to
the identified eligible activities as described above. In this process, we conducted several control
measures, such as plausibility checks and reconciliations, to avoid double-counting of additions. In total,
the corresponding numerator of the eligible CapEx KPI amounts to € 659 million (2024: € 1,243 million),
resulting in a CapEx KPI of 57% eligible and 43% non-eligible CapEx. The eligible CapEx in 2025 solely
relates to building leases (CCM section 7.7), which amount to € 659 million. While a total of € 79 million of
eligible CapEx complies with the substantial contribution criteria, € 0 million of eligible CapEx are
Taxonomy-aligned, yielding a CapEx KPI of 0% aligned CapEx (2024: 33% aligned CapEx). Other activities,
like company car leases (CCM section 6.5) and energy efficiency measures (CCM section 7.3), both
assessed in prior years, fall within the scope of the EU Taxonomy but are non-material for adidas due to
their low CapEx contribution (8%) and are excluded from the numerator, but remain part of the denominator.
►SEE STATEMENT OF FINANCIAL POSITION AND STATEMENT OF CASH FLOWS
Taxonomy-eligible CapEx in 2025
€ in millions
Total
Taxonomy-
eligible
in %
Substan-
tial contri-
bution
in %
Taxonomy-
aligned
in %
Taxonomy-
non-
eligible
in %
CapEx
1,158
659 57%
79
7%
—
—%
499 43%
CCM 7.7 Acquisition and ownership of
buildings (including building leases)
659
659 57%
79
7%
—
—%
—
—%
OpEx KPI: The Taxonomy definition of ‘OpEx’ refers to expenditure for research and development, short-term
leases, maintenance and repair, as well as certain other expenditure. In 2025, this amounts to
€ 1,062 million (denominator of the OpEx KPI) at adidas (2024: € 954 million), which compares to
€ 24,811 million of net sales and € 10,871 million of OpEx as per the consolidated financial statements
for adidas disclosed in this report. In the context of our business model, which is the design, development,
production, and marketing of a broad range of performance and sports lifestyle products, we consider the
Taxonomy OpEx KPI denominator value to be insignificant. Consequently, and in line with the provisions of
the regulation, we report the numerator value of our Taxonomy-eligible OpEx KPI as € 0 (2024: € 0). No
further information on the alignment of eligible OpEx can be provided in this Annual Report, accordingly.
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We consider the EU Taxonomy to be a potentially valuable instrument that might help us validate and adjust
our sustainability ambitions over time, assuming our core business activities become eligible to contribute
to the Taxonomy’s environmental objectives and a common interpretation of all aspects relevant to adidas
is established. At the time of the publication of this report, it remains unclear if this will happen in the
foreseeable future.
Proportion of turnover, CapEx, OpEx from products or services associated with Taxonomy-eligible or Taxonomy-aligned economic activities – disclosure
covering business year 2025 (summary KPI)
Business year 2025
Breakdown by environmental objectives of
taxonomy-aligned activities
KPI (1)
Total (2)
Proportion of taxonomy-eligible activities (3)
Taxonomy-aligned activities (4)
Proportion of taxonomy-aligned activities (5)
Climate change mitigation (6)
Climate change adaptation (7)
Water (8)
Circular economy (9)
Pollution (10)
Biodiversity (11)
Proportion of enabling activities (12)
Proportion of transitional activities (13)
Not assessed activities considered non-material (14)
Taxonomy-aligned activities
in financial year 2024(15)
Proportion of taxonomy-aligned activities
in financial year 2024 (16)
€ in millions
in %
€ in millions
in %
in %
in %
in %
in %
in %
in %
in %
in %
in %
€ in
millions
in %
Turnover
24,811
—%
—
—%
—%
—%
—%
—%
—%
—%
—%
—%
—%
—
—%
CapEx
1,158
57%
—
—%
—%
—%
—%
—%
—%
—%
100%
—%
8%
576
33%
OpEx
1,062
—%
—
—%
—%
—%
—%
—%
—%
—%
—%
—%
—%
—
—%
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Proportion of CapEx from products or services associated with Taxonomy-eligible or Taxonomy-aligned economic activities – disclosure covering
business year 2025 (activity breakdown)
Reported KPI CapEx,
business year 2025
Environmental objective of taxonomy-aligned
activities
Economic activities
Code (2)
Taxonomy-eligible KPI
(proportion of taxonomy-eligible CapEx) (3)
Taxonomy-aligned KPI
(monetary value of CapEx) (4)
Taxonomy-aligned KPI
(proportion of taxonomy-aligned CapEx) (5)
Climate change mitigation (6)
Climate change adaptation (7)
Water (8)
Circular economy (9)
Pollution (10)
Biodiversity (11)
Enabling activity (12)
Transitional activity (13)
Proportion of taxonomy-aligned activities (14)
in %
€ in millions
in %
in %
in %
in %
in %
in %
in %
(E
where
applic-
able)
(T
where
applic-
able)
in %
Acquisition and ownership
of buildings (building leases)
CCM
7.7
57%
—%
—%
—%
—%
—%
—%
—%
—%
E
—%
Sum of alignment per
objective
—%
—%
—%
—%
—%
—%
Total KPI (CapEx)
57%
—
—%
—%
—%
—%
—%
—%
—%
100%
—%
—%
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Own Workforce
Our people power our strategy and performance. We foster an inclusive culture where every colleague can
contribute and grow, grounded in our values of Courage, Ownership, Innovation, Teamplay, Integrity, and
Respect. This culture strengthens engagement, supports well-being and development, and ultimately
contributes to brand momentum and business results. We cultivate an environment that enables
colleagues to thrive and contribute to our long-term performance.
We also remain attentive to the risks that may affect our workforce. Ensuring full compliance with health
and safety standards is essential to protecting our people and maintaining a safe and secure workplace.
Continuous learning plays a critical role in strengthening engagement and future readiness. Addressing
these areas is an integral part of how we safeguard our people and continue to strengthen our culture.
Key metrics
Employees by region
Gender split
Number of nationalities
180
Male
Female
48%
52%
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Actions
We have numerous ongoing initiatives and invest significant resources into managing material impacts,
risks, and opportunities related to our own workforce.
─Strengthening secure and flexible employment models, including internal mobility, flexible
work options, and expanded leave programs
─Advancing fair and transparent compensation through annual reviews and pay-equity
monitoring, among other relevant actions
─Enhancing health, safety, and well-being via extended health and safety as well as
mental-health trainings, accident investigations, and hybrid wellness offerings
─Investing in talent development with global leadership programs, such as Functional
Academies, the GHIPO program, mentoring, and improved performance practices
Targets
Our business model is fundamentally driven by people, encompassing skilled and creative individuals. As a
result, fostering excellent working conditions is paramount and we achieve it through aligned and
measurable goals.
Global equal pay target
Women in leadership positions1
Our ambition is to identify and monitor pay
gaps and take concrete measures to close
them. We intend to do this globally across all
countries with adidas employees, in line with,
but not necessarily limited to, the scope of
the EU Pay Transparency Directive.
Status 2025
2033 ambition
41%
50%
1 Director (M2) and above positions.
Health and safety target
adidas sets KPIs to fulfill and track the progress of its Health and Safety Policy, with the goal of
minimizing work-related incidents.
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ESRS 2 – General disclosures
SBM-2 – Interests and views of stakeholders
Our approach to engagement with our stakeholders is reported under ESRS 2 SBM-2.
►SEE ESRS 2 – SBM-2 – INTERESTS AND VIEWS OF STAKEHOLDERS
SBM-3 – Material impacts, risks, and opportunities and their interaction with strategy and
business model
Our people are the key to our company’s success. Their performance, well-being, and personal
development have a significant impact on our brand reputation, consumer satisfaction, and, ultimately, our
results. In our roadmap to success, we emphasize the focus on our own workforce as a foundational pillar
that will guide us in the years to come.
Our goal is to develop a culture that values our employees’ experience, well-being, and performance. To
support this aim, we rely on our six values – Courage, Ownership, Innovation, Teamplay, Integrity, and
Respect – across our people policies and processes, including how we hire, promote, and evaluate
performance. These values are closely tied to our culture and are the essence of our identity. They
underscore the behaviors and mindsets we value in our colleagues, represent the attitude we want to see
in each other, and help us achieve top performance. These values also build the foundation of our
leadership framework called ‘Leadership3,’ which is built around nine core competencies divided into three
key areas: Excel, Empower, and Elevate, which guide leaders in driving performance, building inclusive
teams, and fostering innovation.
Our business model is fundamentally driven by people, encompassing skilled and creative individuals. As a
result, fostering excellent working conditions and supporting freedom of association and the right to
collective bargaining are material for us. This includes ensuring secure employment, promoting a healthy
work-life balance with flexible and fair working time, enhancing employee engagement and development,
creating an inclusive workplace for all employees that leverages everyone’s talents, and providing
competitive compensation and benefits. These factors are crucial for attracting and retaining top talent,
which in turn guarantees high product quality and the ability to meet customer demands.
Our continued focus on our people can be further explained by our priorities around creating an equal
playing field for all, leadership and performance. These pillars seek to focus our efforts on people and
culture by:
─embedding inclusion and belonging even further into talent processes and our culture in a legally
compliant manner;
─attracting, developing, and retaining key talent;
─developing role-model leaders who empower people;
─instilling a mindset of continuous learning;
─recognizing and rewarding performance.
The interests, views, and rights of our employees are highly important to us. We engage with them through
multiple channels and events to continually adapt our focus on people and roadmap to success.
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Secure employment
Positive
Impact
Actual
n.a.
Own
operations
Providing a safe working environment for employees contributes to better productivity, well-being (incl.
mental and physical health), and financial stability.
Working time
Positive
Impact
Actual
n.a.
Own
operations
Providing flexible and fair working time and rules for employees actively supports employee well-being
(incl. mental and physical health) and work-life balance.
Adequate wages
Positive
Impact
Actual
n.a.
Own
operations
Adequate wages positively impact employees’ financial security and stability, contributing to overall
well-being and motivation.
Freedom of
association
Positive
Impact
Actual
n.a.
Own
operations
Basic human and labor rights positively impact employees’ abilities to protect and enforce their rights
and represent their views and interests around working conditions on an institutional level.
Collective
bargaining
Positive
Impact
Actual
n.a.
Own
operations
Collective bargaining can offer employees the opportunity to negotiate employment conditions at a
collective level. Negotiations on a collective level are also possible through representatives elected
directly by employees, such as works councils, which can also lead to positive results.
Work-life-balance
Positive
Impact
Actual
n.a.
Own
operations
Providing flexible working hours and hybrid working, where job responsibilities allow, helps employees
achieve a better balance between their private and professional lives.
Health and safety
Negative
Impact
Actual
n.a.
Own
operations
Negative impacts occur around mental and physical health, impacting an individual’s ability to perform
well at work.
Health and safety
Risk
n.a.
Short-term
Own
operations
Non-compliance with health and safety regulations or security measures across our operations, risks
legal penalties, fatalities, and reputational damage for adidas, particularly when responsibilities are
unclear, or awareness is lacking.
Gender equality and
equal pay
Negative
Impact
Actual
n.a.
Own
operations
Unfair and unequal treatment of employees leads to financial disadvantages for individuals and
negatively impacts career progression and employee engagement.
Training
and skills
development
Positive
Impact
Actual
n.a.
Own
operations
Providing training positively impacts our employees' engagement, qualifications, professional
development, and career progression.
Training
and skills
development
Negative
Impact
Potential
Long-term
Own
operations
Lack of training and skills development can result in lower employee engagement and qualifications and
hinder career progression.
Training
and skills
development
Risk
n.a.
Short-term
Own
operations
As we rely on a talented and skilled workforce, inadequate training and development may lead to higher
staff turnover rates and the loss of key personnel and capabilities, resulting in productivity
inefficiencies, disruption of key business activities, suboptimal business performance, and higher costs.
Training
and skills
development
Opportunity
n.a.
Mid-term
Own
operations
adidas relies on the skills and capabilities of its people and leaders to realize its strategic ambitions. If
adidas successfully develops an inclusive, and talented workforce that maintains a culture of trust,
creativity, and innovation, employee engagement will increase.
Employment and
inclusion of
persons with
disabilities
Negative
Impact
Actual
n.a.
Own
operations
Insufficient employment opportunities and career progress for people with disabilities negatively impact
overall employee engagement levels, as employees expect a more inclusive working environment.
Measures against
violence and
harassment
Negative
Impact
Actual
n.a.
Own
operations
Harassment and violence negatively impact the mental and physical health of all employees. In
particular, Retail employees can be exposed to external incidents like criminal activities for example
store robberies.
Diversity
Positive
Impact
Actual
n.a.
Own
operations
Providing an inclusive working environment and fair opportunities for individuals helps employees feel a
sense of belonging and engagement.
Diversity
Negative
Impact
Potential
Long-term
Own
operations
Unconscious and conscious biases in our systems and practices can negatively impact employees’
career development and personal health.
Diversity
Opportunity
n.a.
Mid-term
Own
operations
adidas strives to develop people and leaders of all backgrounds with the capability to maintain an
inclusive workplace for all employees that is non-exclusionary and is non-discriminatory as well as a
culture of trust, diversity of thought, creativity, and innovation. This development can lead to greater
employee satisfaction and engagement, as well as innovation, which may enhance adidas’ capacity to
execute its strategy and potentially overachieve its financial objectives.
Diversity
Risk
n.a.
Short-term
Own
operations
adidas relies on the skills and capabilities of its employees and leaders to achieve its strategic
ambitions. If adidas fails to further develop an inclusive workplace for all employees that is non-
exclusionary and is non-discriminatory as well as a culture of trust, diversity of thought, creativity, and
innovation, this might lead to decreased employee satisfaction and engagement. As a result, adidas
would jeopardize its capacity to execute its strategy and achieve its financial objectives.
SBM-3 – Own workforce and material impacts, risks and opportunities (IROs)
Material matter
Material IRO
Classification
Time horizon
Value chain
Description
All employees in adidas’ own workforce that can be materially impacted are included in the scope of our
disclosures under ESRS 2.
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Types of employees affected by workforce-related material impacts
Employees – all employed by the company:
─Corporate: Employees working across a diverse range of functions that are located in corporate offices
around the globe. These roles fall under various job family groups, including Brand Management &
Communications, Corporate Services, Data Analytics & Data Science, Digital, General Management &
Business Development, Legal & Regulatory, Merchandising & Planning, People & Culture, Product
Development & Operations, Real Estate & Facilities, Sales, Sourcing, Supply Chain Management, and
Technology.
─Retail: Employees responsible for adidas retail operations, including the promotion and sale of in-store
products and services directly to end-consumers. This group includes both front-line staff with direct
customer interaction – such as shop floor personnel, cashiers, and sales associates – as well as back-
office roles focused on store administration and management.
─Distribution Centers (DCs): These employees include those working in both operational and
administrative roles. This encompasses back-office functions such as administration and management,
as well as logistics and planning teams responsible for productivity, inventory, quality control, and
reporting. Operations teams within the distribution centers manage the receipt, storage, and shipment of
products, ensuring efficient flow and accurate documentation throughout the process.
─Production: Responsible for setting up, operating, maintaining, and troubleshooting manufacturing
production (i.e., machining, processing, assembly, or modifying) equipment for any factories and centers.
They help to ensure innovative and cost-efficient production processes with optimal capacity utilization.
Non-employees – external workforce types:
─Contingent labor: Individuals who are sourced on a role or project basis. There are two different types of
contingent labor:
▪Temporary labor: Individuals employed by temporary staffing agencies for the purpose of being
assigned to other companies temporarily. Temporary labor workers perform internal adidas roles and
are directly supervised and managed by adidas employees.
▪Individual suppliers/employed professionals/employed consultants: As experts in their fields, these
individuals advise companies within their area of expertise; however, unlike temporary labor workers,
they typically work independently while offering guidance and advice on strategic, legal, financial, or
other matters.
─Services Procurement: In the area of Services Procurement, external service providers are companies
that deliver people-based services to a company in an autonomous, liable, and self-reliant way. These
include technical consulting companies, specialty services, marketing agencies, and maintenance
companies. They are typically retained to perform project-based work under a contractual arrangement
often called a Statement of Work (SOW).
Our employees are affected by both positive and negative material impacts to varying degrees due to the
nature of their work:
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Health and safety
Individual – due to incidents in the workplace that could be related to physical violence, accidents in the
workplace, or interaction with hazardous materials.
Gender equality and equal pay
Systemic – countries with laws restricting women from employment are more at risk of having unequal pay
and lower workforce gender diversity.
Training and skills development
Systemic – due to the availability of training and skill development offerings across countries and
functions.
Employment and inclusion of
persons with disabilities
Systemic – due to inclusion in terms of hiring and accessibility for disabled persons in the workplace.
Measures against violence and
harassment
Individual – due to incidents in the workplace that may be related to physical violence between employees
or between non-employees and customers.
Diversity
Systemic – countries with laws limiting rights of the LGBTQIA+ community, women’s employment, or
restrictive immigration laws are more at risk of having lower diversity.
SBM-3 – Material negative impacts – systemic or individual
Material topic
Material negative impact – systemic or individual
The business model of adidas is expected to be impacted by climate change only in the long term, as
described in the topical standard ESRS E1 Climate Change. Most of our environmental impacts occur in our
upstream value chain. Therefore, our primary efforts to reduce environmental impacts focus on increasing
the use of green energy in our upstream value chain, developing new materials, and changing the existing
mix toward lower-impact materials. We do not anticipate any restructuring or employment loss as part of our
response to climate change. Instead, we see the transition to greener operations as a potential opportunity
to create new jobs and upskill our own workforce on environmental topics.
We have also identified risks and opportunities that relate to specific groups of people rather than the
entire workforce:
Secure employment
Job security has a greater positive material impact on corporate employees, but it is less
significant for DC and Retail workers due to the seasonality of workforce demand.
Employees with non-guaranteed working hours – who are more common in retail, albeit
only in certain markets – and temporary workers may be at a higher risk for adverse
impacts due to the nature of their employment arrangements.
Demand volatility contributes to circumstances where non-employees may face
more unpredictable employment conditions or are subject to short- or fixed-term
contracting compared to employees.
Working time
Working time has a more positive impact on corporate employees, who have more flexible
working options, whereas Retail and DC employees work on-site. Time tracking is simpler
in Retail and DCs as these utilize system check-ins and check-outs, while corporate time
tracking is trust-based and completed online in many locations, and varies in line with
local regulatory requirements.
The positive impact is lower for non-employees as they are subject to working time
tracking and benefits from their direct employer.
Work-life-balance
The actual positive impact on employees, particularly corporate workers who do not work
in shifts, stems from the availability of flexible working hours and hybrid work options.
The positive impact is lower for non-employees as they are subject to working time
tracking and benefits from their direct employer.
Adequate wages
Differentiation is driven by geography, could also differ by employee groups.
Potentially different impact as non-employees may be subject to conditions offered
by their direct employer.
Freedom of
association
No differentiation due to common framework.
Less material impact as non-employees are subject to rights from their direct
employer.
Collective
bargaining
No differentiation due to common framework.
Less material impact as non-employees are subject to rights from their direct
employer
Health and safety
Health and safety is a greater risk for DC and Retail employees due to the physical nature
of their jobs, which exposes them to potential accidents or hazardous materials. Retail
employees working in busy urban areas also have a higher exposure to violence as their
workplaces provide open access to customers.
Non-employees benefit from the same on-site health and safety measures as
employees.
Gender equality and
equal pay
No differentiation within types of employees due to common salary frameworks applicable
to these types of employees.
Potentially different impact where non-employees are subject to conditions offered
from their direct employer.
SBM-3 – Material impacts on employee groups
Material topic
Corporate/Retail/DC
Non-employees
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Training and skills
development
This opportunity is most pronounced for corporate employees, who generally have broader
access to digital infrastructure, online training, and in-person learning within the office
environment. In Retail, access to development opportunities has improved through
enhanced connectivity to corporate platforms, expanded digital learning options, and new
in-person formats, especially for store management. In DCs we took major steps in 2025
improving technical access and digital learning availability for our DC frontline employees
and strengthened DC leadership development across all leadership levels.
Potentially different impact as non-employees are subject to offers for training and
skills development from their direct employer.
Employment and
inclusion of
persons with
disabilities
Greater risk for DC and Retail employees due to the physical nature of their jobs and the
physical limitations of retail stores and DC warehouses, which make the inclusion of
disabled persons more complex.
Greater risk for non-employees in DC and Retail environments due to the physical
nature of their jobs and the limitations of the environment.
Measures against
violence and
harassment
Retail employees face a greater risk due to direct consumer contact, which can impact
workplace security. In contrast, corporate and DC employees experience no increased risk,
as access to their workplaces is restricted or closed.
Non-employees benefit from the same on-site health and safety measures as
employees.
Diversity
Diversity in DC and Retail workers is represented by local ethnicities and diversity
demographics, as hiring practices primarily focus on the local and seasonal workforce, and
international mobility packages are less common. All DC, Retail and corporate employees
benefit from a more positive impact regarding diversity.
Similar to employees.
SBM-3 – Material impacts on employee groups
Material topic
Corporate/Retail/DC
Non-employees
Health and safety
Health and safety is a greater concern for DC and Retail
employees due to the physical nature of their jobs and
higher exposure to potentially hazardous situations and
materials.
n.a.
Potential health and life threats (not work-
related) in active military conflict areas and in
crisis areas due to natural or environmental
disasters.
Training and skills
development
More opportunities for corporate employees due to the
nature of their work, better access to digital
infrastructure and online training programs, and in-
person training conducted within the office environment.
Global inclusion and belonging training, together with strong
Employee Resource Groups (ERGs), helps create a more inclusive
environment and enhances working conditions, particularly for
underrepresented groups.
Fewer opportunities to conduct on-site training.
Diversity
Higher risk for DC and Retail employees due to hiring
practices that rely more on local workforces.
Risk: Lack of non-exclusionary and non-discriminatory practices
can negatively impact the careers and personal health of
employees. This may also result in lower representation across
different levels, especially across higher-ranking roles.
Opportunity: Engage in measures that provide an inclusive
environment and fair opportunities for all individuals, helping
employees feel a sense of belonging and engagement.
n.a.
SBM-3 – Material risks and opportunities arising from impacts relating to specific groups of people
Risks and
opportunities of
material topic
Corporate/Retail/DC
Underrepresented groups
Employees in crisis/conflict areas
Impact, risk and opportunity management
S1-1 – Policies related to own workforce
At adidas, our policies serve as a foundational framework to guide ethical behavior, ensure compliance,
and foster a respectful and inclusive workplace. We take a principles-based approach, aligning our policies
with global standards, local regulations, and adidas’ core values. As a diverse company where 180
(2024:175) nationalities bring their uniqueness to work each day, we are united by our values of Courage,
Ownership, Innovation, Teamplay, Integrity, and Respect. These values are embedded in our policies, which
aim to safeguard employees’ rights, educate our workforce on acting with integrity and non-discrimination,
and establish the necessary frameworks for a safe and empowering working environment. Each policy is
designed to be clear, accessible, and actionable – articulated in a way that supports understanding across
diverse roles and regions, enabling consistent application while allowing for contextual relevance.
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Company agreements on
working location flexibility
(WC)
Enable mobile working, both nationally and
internationally.
Own operations
(corporate
employees globally,
where locally
possible)
Executive Board
Member Global
Human Resources,
People and Culture
n.a.
Works Council
Available for all
employees
Rewards Strategy and
Compensation Policy
(WC)
Outlines the elements of employee total
compensation, ensures consistent application
within adidas, and sets the related monitoring
actions.
Own operations
Executive Board
Member Global
Human Resources,
People and Culture
n.a.
n.a.
Available for all
employees
Global Training Policy
(WC, ET)
Outlines adidas’ approach to training and its
expectation that employees complete all
mandatory trainings. Monitored through the
Learning Management System (LMS).
Own operations (all
adidas employees
with regular access
to the LMS)
Executive Board
Member Global
Human Resources,
People and Culture
n.a.
n.a.
Available for all
employees
Health and Safety Policy
(WC)
Establishes uniform, mandatory global standards
for minimum occupational health and safety for
adidas employees, visitors, and external service
providers. Country-specific policies complement
it.
Own operations
Executive Board
Member Global
Human Resources,
People and Culture
ISO 45001
n.a.
Available for all
employees
Integrated Management
System Global Policy
(WC)
Sets standards for adidas entities worldwide to
manage operations in a safe, healthy, energy-
efficient and environmentally responsible
manner and continuously improve practices.
Regarding its own workforce, adidas specifically
has a Health and Safety Management System in
place that aligns with ISO standards.
Own operations
Executive Board
Member Global
Human Resources,
People and Culture
ISO 14001, ISO
45001, ISO 50001
n.a.
Accessible on
corporate website
Fair Play Code of Conduct
(ET)
Stipulates that every employee and our business
partners shall act ethically in compliance with
the laws and regulations of the legal systems in
which they conduct company business and
provides guidance on issues including anti-
corruption, anti-bribery, and whistleblowing.
Promotes a respectful, equitable, and inclusive
work environment.
Entire value chain
Executive Board
n.a.
adidas AG Executive
Board and
Supervisory Board,
Works Council
Accessible on
corporate website
Anti-Harassment and Anti-
Discrimination
(ET)
Details how adidas prevents, detects, and
responds to all forms of discrimination and
harassment. Complemented by the adidas Fair
Play Code of Conduct.
Own operations
Executive Board
Member Global
Human Resources,
People and Culture
n.a.
n.a.
Accessible on
corporate website
Equal Employment
Opportunity
(ET)
Ensures adidas and its entities comply with local
laws, act as equal employers, and make
employment decisions based on merit. Prohibits
discrimination based on race, color, creed,
origin, sex, orientation, age, ancestry, disability
or other factors.
Own operations
Executive Board
Member Global
Human Resources,
People and Culture
n.a.
n.a.
Available for all
employees
Human Rights Policy
(WC, ET)
Defines our commitment to human rights and
the protection of the environment, alongside the
measures implemented to fulfill our Human
Rights & Environmental Due Diligence (HREDD)
responsibilities.
Own operations,
upstream (incl.
suppliers, licensees,
sub-contractors)
Executive Board and
CHRO
UNGPs, OECD MNE
Guidelines,
International Bill of
Human Rights, ILO
Declaration
Direct consultation
with stakeholders
Accessible on
corporate website
and directly shared
with suppliers
1 Material matters addressed by policies and guidelines are abbreviated as follows:
WC – Working Conditions
ET – Equal Treatment and Opportunities for all
S1-1 – Policies related to own workforce
Policies1
Content
Scope
Senior level
responsible
Third-party
standards/
initiatives
Stakeholder
consideration
Availability
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Our human rights approach
adidas is committed to respecting human rights in accordance with the United Nations Guiding Principles
on Business and Human Rights (UNGPs). We also draw on guidance from the Organisation for Economic Co-
operation and Development (OECD) Guidelines for Multinational Enterprises. adidas’ commitment embraces
all internationally recognized human rights, including those contained in:
─the International Bill of Human Rights, consisting of the Universal Declaration of Human Rights, the
International Covenant on Civil and Political Rights, and the International Covenant on Economic, Social,
and Cultural Rights; and
─the International Labour Organization’s (ILO) Declaration on Fundamental Principles and Rights at Work.
They include freedom of association, the right to collective bargaining, and the rights not to be subjected
to forced or child labor or discriminated against regarding employment and occupation.
Where there is potential for adverse impacts on vulnerable people or groups, we will also consider other
international standards and principles that elaborate on the rights of such individuals or groups, including
Indigenous peoples, women, national, ethnic, religious, and linguistic minorities, children, disabled people,
migrant workers and their families, and human rights defenders. Our considerations include, for example,
the Convention on the Elimination of All Forms of Discrimination Against Women and the Convention on the
Rights of the Child.
Our commitment to human rights is supported through an ongoing due diligence process to identify,
address, evaluate, and communicate the risks of involvement with adverse human rights impacts. Our
Human Rights & Environmental Due Diligence (HREDD) processes are also aligned with the UN Guiding
Principles on Business and Human Rights and the OECD Guidelines for Multinational Enterprises. We are
committed to providing for or cooperating in the prevention, mitigation, and remediation of adverse human
rights we have caused or contributed to, and will seek to promote or cooperate in the mitigation and
remediation of adverse impacts where we are linked to these through our business relationships. Moreover,
our commitment is supported by key policies, including the adidas Workplace Standards – our supply chain
code of conduct outlining our expectations on human rights and employment standards, including those
regarding forced labor, child labor, discrimination, wages, benefits and compensation, working hours,
freedom of association and collective bargaining, worker health and safety, and environmental practices.
More details are provided in the S2 – Workers in the value chain chapter.
►SEE ESRS S2-1 – POLICIES RELATED TO VALUE CHAIN WORKERS
Concerning human rights issues, adidas engages with its workforce both directly and through work councils.
Details on how we engage with employees and provide open channels for communication and grievances
are provided within this chapter.
►SEE ESRS S1-2 – PROCESSES FOR ENGAGING WITH OWN WORKERS AND WORKERS’ REPRESENTATIVES ABOUT IMPACTS
►SEE ESRS S1-3 – PROCESSES TO REMEDIATE NEGATIVE IMPACTS AND CHANNELS FOR OWN WORKERS TO RAISE CONCERNS
As mentioned above, adidas’ human rights policy related to its own workforce includes safeguarding
against human trafficking, forced or compulsory labor, and child labor. Further details on how we address
these issues, including measures to provide and/or enable remedies for human rights impacts, can be
found in this chapter.
►SEE ESRS S1-3 – PROCESSES TO REMEDIATE NEGATIVE IMPACTS AND CHANNELS FOR OWN WORKERS TO RAISE CONCERNS
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S1-2 – Processes for engaging with own workers and workers’ representatives about impacts
adidas strives to engage all employees within our workforce, and we leverage our employees’ valuable
feedback to improve our business and management. Through various communication and engagement
methods implemented across our global organization and workforce, we seek diverse perspectives to
identify, understand, and address any negative, positive, actual, or potential material impacts. adidas
engages directly with its own workforce as well as workers' representatives. We incorporate our workforce's
perspectives into decision-making and activities seeking to manage material impacts by gathering and
integrating employee feedback into our strategic and operational processes. We present insights from
various employee surveys to senior leadership and the Board, which inform action plans and shape
initiatives to address identified concerns. For example, our employee listening survey outcomes are utilized
and influence our strategies aimed at improving employee engagement and retention or feelings of
inclusion and belonging.
We also integrate feedback from workers’ representatives and works councils into our management
approach and practices. This collaboration ensures that employee concerns are addressed in the
negotiation and implementation of company agreements, demonstrating adidas’ commitment to aligning its
actions with the interests and needs of its workforce. Additionally, employee perspectives are directly
integrated at the highest levels of decision-making through employee and union representatives on adidas'
Supervisory Board. This representation ensures that employee interests are formally considered in strategic
decisions. Outcomes of decision-making and how they were influenced by our engagement with the
workforce are communicated to employees in a timely manner and on an ongoing basis. The forums and
channels we use include global or local town hall meetings, our corporate intranet, company-wide email
communication, our internal social media tool, leadership- or direct line manager-led communications, and
function-specific communication streams led by functions such as HR or Finance.
General engagement with own workforce
All employees and teams at adidas are free to discuss any matter or material impacts and take steps to
address areas of concern through relevant communication channels. We have established the following
engagement methods to gain perspectives from employees on issues important to them while fostering an
environment of respect – all measures are managed by the HR function, and ultimately the Executive Board
Member Global Human Resources, People and Culture’s responsibility, except for townhall meetings, which
are led by the CEO. The resources associated with the different engagement activities are not centrally
measured.
General engagement with own workforce
Channel
Description
Participants
Frequency
HR Business
Partners (HRBPs)
HRBPs are key global and local contacts for employees, ensuring open and accessible communication. They engage directly with
employees to understand their perspectives and address their concerns, providing insights that guide adidas' decisions. Through
regular interactions and engagement initiatives, HRBPs implement local actions based on feedback, integrating employee views
into strategy and fostering trust and collaboration.
All employees
(engagement at
local level)
Ongoing
Candidate
Experience survey
This survey evaluates the global candidate experience at adidas by gathering feedback on applications, interviews, job offers, and
contract signing. The results are analyzed centrally by the People Intelligence team and on a market level by the Talent
Acquisition teams. They are also available to recruiters to develop individually based on received feedback.
All candidates who
participated in
interviews at adidas
Ongoing
Hiring Manager
Experience survey
Similar to candidate experience, this survey gathers feedback around the hiring process, but from the perspective of hiring
managers, gathering insights into collaboration with Talent Acquisition as well as quality of candidates.
All hiring managers
at adidas
Ongoing
Exit survey
The exit survey captures key reasons for leaving, future plans and intention to return, helping adidas improve retention. Insights
are shared quarterly with HR Senior Leadership Team and local actions are driven by HRBPs.
Corporate
employees
Ongoing
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Employee Listening
Survey (ELS)
The ELS is a team-centered survey that captures feedback on topics managers and teams can directly influence. Local line
managers are responsible for taking action based on the results, supported by tailored action guides, training, and resources.
Survey outcomes and resulting action plans are shared with the Board. To measure effectiveness, we analyze individual action
plans to identify trends and develop targeted support for high-impact areas. We also conduct regular interviews with HR and
other business functions to uncover gaps and continuously improve our listening strategy.
All employees
Annually
Townhall meetings
Townhall meetings share global business updates and employee-related news. Employees can submit questions to leadership in
person or anonymously online, with responses given during or after the event. All adidas employees are invited via email. Those in
distribution centers without email access receive a livestream link. Employee input informs decisions on communication,
policies, priorities, and leadership actions.
adidas Executive
Board and all
adidas employees,
excluding externals
Quarterly
Employee Resource
Groups (ERG)
ERGs are open to all employees and are voluntarily led global and local networks that give employees of various backgrounds and
perspectives a community of belonging and togetherness. With over 30 ERGs worldwide, along with diversity ambassador teams
that focus on dimensions of diversity such as ethnicity, gender, women in tech, LGBTQIA+, experienced generation, faith,
disability, and caregivers at work. The responsible HR team supports and collaborates with ERGs and gathers feedback through
quarterly touchpoints, global activations, and market-led conversations.
All employees -
participation is
voluntary
Ongoing
Works Council
adidas maintains works councils at the local, national, and European levels to ensure regular employee engagement. Employee
concerns are communicated through these councils and help shape organizational decisions. Structured collaboration is
supported by the Labor Relations team and HR Employee Relations team, which serve as the legal interface, advising on co-
determination rights and managing company agreements. The teams also work to strengthen processes and relationships with all
works councils.
All employees have
the opportunity to
contact the Works
Council regarding
any concerns or
suggestions.
Ongoing
In Germany, an all-
employee meeting
takes place
annually.
Responsibility for engagement with own employees through workers representatives
In Germany, adidas’ most senior roles with operational responsibility for employee engagement and
ensuring that results inform our strategy are the Executive Board Member Global Human Resources, People
and Culture, HR Employee Relations, and the Head of Labor Relations.
In the other locations, workers’ representation is locally structured. The most senior role of the
responsibilities differs depending on the size of the location in terms of employee count.
Responsibility for direct inclusion of employee representatives in management bodies
─Supervisory Board: Employee, Works Council, and union representatives are part of our Supervisory
Board.
─Executive Board: The Executive Board Member Global Human Resources, People and Culture,
representing employees and their needs.
S1-3 – Processes to remediate negative impacts and channels for own workers to raise
concerns
At adidas, we are deeply committed to supporting our workforce and addressing any potential adverse
impacts they may encounter. We maintain a robust framework of communication channels that empower
employees to voice concerns safely and confidentially, reinforcing our dedication to transparency,
accountability, and continuous improvement.
Channels for own workforce to raise concerns
adidas provides various channels through which its employees can raise concerns. These mechanisms
were established by adidas itself (unless stated otherwise) and are available to all employees, regardless
of their position or location. These reporting channels are made known to the employees during onboarding
and are accessible on the company SharePoint and our corporate website.
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Concerns related to material impacts may be raised through several internal resources, including an
employee’s Line Manager, a HRBP, the HR Employee Relations team, or the Compliance team. In regions
where legally required, Works Councils are also available to support employees. Furthermore, the Fair Play
hotline and Fair Play webform offer a secure and anonymous option for reporting concerns.
Fair Play hotline and webform
The most formal way to raise a concern is through the Fair Play hotline or webform. They are provided by a
third-party service provider who communicates directly with the reporter. They allow employees to raise
concerns under their own name, anonymously, or semi-anonymously (their name is known to the service
provider but not adidas). All concerns relating to harassment, discrimination, and retaliation are reviewed by
the HR Employee Relations team to determine the most appropriate form of remediation. Within 48 hours
of receiving the concern, HR Employee Relations contacts the reporter to schedule an intake call. During
this call, the concerns are discussed with the reporter, and the appropriate form of conflict resolution, such
as an investigation, is agreed upon.
adidas assesses the effectiveness of the Fair Play hotline and webform through usage metrics such as
frequency of use, types of reports, and resolution times. Each year, adidas publishes statistics on Fair Play
to help ensure our workforce is aware of and trusts these processes as a way to raise concerns and have
them addressed. It also gives employees confidence that if they speak up, it will always be taken seriously
and followed up with action.
We also have a non-retaliation policy to protect individuals who raise concerns from retaliation. Our Fair Play
Code of Conduct clearly states that any adidas employee who reports a reasonable suspicion of an actual
or potential policy violation is protected against any form of retaliation, regardless of whether their
suspicion turns out to be valid. Conversely, any employee who retaliates or attempts to retaliate against a
fellow employee who has reported or intends to report a suspected violation, including by pressuring or
threatening them not to report, may face disciplinary action. Any employee found to have made a report
with malicious intent may also be subject to discipline.
General approach for providing or contributing to remedy
We leverage various tools to resolve negative impacts on our workforce, such as concerns of harassment,
discrimination, and retaliation. These tools, such as mediation, intervention, and formal investigation, are
applied thoughtfully to ensure fair and effective outcomes. All HRBPs globally receive comprehensive
training on the use of conflict resolution tools. It is the responsibility of the HR Employee Relations team
and the relevant HRBP to ensure that any issues are addressed and resolved effectively, utilizing the most
appropriate tools and approaches for each situation.
Once a concern has been reported via the Fair Play platform, it is documented and managed within the
Case Management System (CMS). The CMS serves as a centralized repository for all relevant case
documentation, enabling consistent tracking and oversight. By monitoring individual cases, adidas is able
to identify patterns and proactively address emerging issues. Introduced in December 2023, the CMS
began supporting data collection in 2024 to further enhance reporting capabilities and generate actionable
insights.
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CMS investigation process
─Intake: After an allegation was reported, an investigation plan is developed to define the scope and
outline the steps of the investigation. As part of the initial phase, an intake interview is conducted with
the reporter to gather relevant information and better understand the nature of the concern.
─Investigation
─Outcome: The investigation report includes a conclusion as to whether the allegation has been confirmed
or not, along with a clear recommendation for measures. These measures are then implemented by the
business area.
─Documentation
─Aftercare: As part of the resolution process, the reporter and relevant witnesses are contacted, if
required, to confirm the outcome of the investigation. The extent of information shared regarding the
measures taken is determined by factors such as the nature of the case, the concerns raised, the
actions implemented, and the applicable legal framework.
As mentioned earlier, our approach to remedy negative impacts also involves collaboration with ERGs and
works councils. This includes regular engagement through dedicated meetings to ensure employee
concerns are heard, understood, and appropriately addressed. In Germany, employee complaint cases
brought to the knowledge of the Central Works Council are picked up through the HR Relations Lead, HR
Employee Relations, or a respective HRBP for further processing. For specific topics, such as performance
appraisal escalation processes or off-campus working, company agreements detail the conflict resolution
process and procedures. We strive to continuously improve these processes by reviewing our policies and
procedures regularly, which also includes incorporating feedback from employees and parties who were
negatively impacted.
S1-4 – Taking action on material impacts and approaches to managing material risks and
opportunities related to own workforce
adidas is deeply committed to managing the material impacts, risks, and opportunities associated with our
workforce and invests significant time and resources into these efforts. These efforts include having
dedicated functional Centers of Excellence and a global HRBP network across all locations to support
execution and implementation of actions. Functional HR teams who directly contribute to development of
actions include HR Compensation and HR Rewards, HR Labor and Employee Relations, HR Transformation
& Solutions, HSEE (Health & Safety, Environment, and Energy), and HR Talent with support of other
functions.
Working conditions
Secure employment
adidas promotes secure employment by maintaining a low proportion of temporary contracts and prioritizing
internal mobility for employees impacted by organizational changes. In cases of business transformation,
reorganization, or other structural changes, we strive to safeguard employment by offering affected
employees alternative internal opportunities that align with their existing or transferable skill sets.
Working time
adidas provides flexible working models and fosters leadership capabilities that support work-life
integration, and family-oriented services. adidas offers both part-time and full-time employment contracts,
with working hour adjustments managed in line with local legislation. For parental leave, we provide flexible
re-entry programs and unpaid bonding leave, allowing new parents to take up to six months off and
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gradually reintegrate into work life. In addition to statutory leave entitlements - such as annual, maternity,
paternity, and parental leave - we offer further time-off options, including sabbaticals and leave to care for
close family members. To support employees during key life events, we also provide additional leave for
occasions like marriage, caregiving, and relocation, tailored to local laws and country-specific needs.
Our commitment to flexibility extends to work locations through our Remote Working Concept and Working
from Elsewhere Policy. The Remote Working Concept enables corporate employees to work from home for a
portion of their time – defined individually by each market – while giving them the flexibility to manage their
daily schedules independently. Additionally, the Working from Elsewhere Policy enables corporate
employees to work from locations outside their designated office for up to ten days per year.
To ensure continuous improvement and accountability at adidas, we regularly review key people metrics
such as employee fluctuation, temporary vs. permanent contracts and full-time vs. part-time work ratios,
and others. These indicators are reviewed by senior management and supplemented by targeted analyses
to support strategic decision-making.
Adequate wages and compensation approach
Our global rewards compensation programs are designed to ensure all employees are paid competitively for
the role they perform. Our compensation management approach comprises various elements that help
ensure the following:
─all employees are assigned a job role using a global job architecture based on their job profile, ensuring
we can compare jobs on a like-for-like basis
─a salary range, which is assigned to each job role, is created using external market data
─compensation of employees is based on their job role and the associated salary range, independent of
gender or any other diversity criteria
─upon hiring or in cases of position changes – such as lateral moves, promotions, or demotions –
individual salaries are determined based on the salary ranges for the respective job roles, taking into
account the employee’s relevant experience for the job role
─these criteria are also applied during annual salary reviews to ensure consistency and fairness.
We track the impact of our compensation management approach, especially salary reviews, through
management reporting tools. They monitor employee positioning within salary ranges, budget allocations,
and, if applicable, investments needed for pay equity, while including an annual gender pay snapshot. We
work closely with relevant legal/employee representative bodies to analyze overall pay positioning.
Freedom of association, the existence of Works Council and the information, consultation and participation rights of workers
adidas is committed to fostering open and constructive dialogue with employees and their representatives,
fully respecting their right to freedom of association and to join representative organizations. Where
recognized, these organizations may engage in collective bargaining. In Germany, employee participation is
further supported through established works councils and formalized rights to information, consultation,
and involvement in decision-making processes. Additionally, consultation with works councils is integrated
into our decision-making processes, helping identify and shape required actions.
Collective bargaining
We are committed to an open and constructive dialogue with all people employed by adidas and, where
applicable, with their representatives. Our employees are free to join organizations of their choice that
represent them consistent with local organizing laws. These organizations may, if recognized as the
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appropriate agent, engage in collective bargaining according to applicable law. Employees who act as
representatives are neither disadvantaged nor favored in any way. In locations where employees have
decided not to appoint representatives, we promote direct and open communication between employees
and management.
Work-life balance
For parental leave and re-entry, we have programs in place to provide employees with advice early on and
options for their return to work, taking into consideration flexible working hours and work locations. In
Germany, employees returning from parental leave are entitled to reinstatement in their original positions,
which are covered on a temporary basis during their absence. If the original position has ceased to exist,
employees are guaranteed placement in an equivalent role. In the US, in addition to the standard paid
parental leave for birth-giving mothers (up to 8 weeks at 70% of salary), adidas also offers 14 weeks of
paid parental leave at 100% of salary for both birth-giving and non-birth giving parents. Additionally, our
parental leave policy allows parents to take up to six months away from work within the first 12 months
after their child’s birth or placement. In Latin America, adidas offers an extended parental leave policy,
granting mothers 24 weeks of paid leave and fathers or partners 20 paid days, with additional flexibility for
mothers to reduce working hours for one month before and after maternity leave. This benefit applies to
same-sex couples as well as trans and non-binary people, after signing a declaration stating that they are
the main caregiver of the baby. This principle also benefits heterosexual employees that become parents
through adoption processes.
Health and Safety
At adidas, we recognize physical, mental, and social well-being as essential to sustainable performance.
Our holistic approach focuses on prevention, education, and support, offering inclusive programs tailored to
diverse employee needs.
─To prevent risks of work-related injuries, adidas carries out risk assessments across all locations –
offices, DCs, own retail stores – every two years or following changes or incidents, including pre-opening
checks for buildings and machinery.
─Health and safety trainings are regularly conducted and cover topics such as safe work practices, hazard
identification, incident response and general well-being. Our mental health initiatives, include
psychosocial risk assessments and a Mental Health Compass – a centralized resource which contains
curated content, workshops, and tools for self-care, team support, and leadership awareness.
─Regarding the remediation of existing actual health and safety impacts, all corporate and retail accidents
that occur are investigated and findings are shared globally with relevant stakeholders. Additionally,
solution recommendations are provided that are in accordance with the adidas H&S Manual to prevent
accidents’ reoccurrence.
─adidas provides coverage for work-related injuries and illnesses, which may include workers’
compensation and other medical support. These offerings are available globally, regionally, or locally, and
may be statutory or supplemental, depending on market-specific needs and regulations.
─To support a healthy lifestyle and mental well-being, adidas offers a broad range of sports activities,
events, and facilities, including corporate gyms at many global locations. Office buildings are equipped
with lockers and showers to help employees integrate exercise into their day. In response to hybrid work
needs, we provide both local and virtual programs that promote teamwork and wellness, such as hybrid
sports classes, medical and psychosocial consultations, digital disconnection tools, and sessions on
well-being.
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Equal treatment and opportunities for all
Gender equality and equal pay for work of equal value
Our ambition is to identify and monitor pay gaps, and to take concrete measures to close them. We have
been analyzing our gender and equity pay gap data on a regular basis for several years.
Our global rewards compensation programs are gender agnostic and unbiased. This has a positive impact
on gender pay equity at adidas.
In addition to reporting remuneration metrics in accordance with ESRS, we are preparing for the
implementation of the EU Pay Transparency Directive. We will implement it according to country legislation,
invest in advanced reporting tools, and align our own internal policies and procedures.
To prepare for the upcoming national legislation on the EU Pay Transparency Directive, we are planning or
have already established a number of measures:
─Europe-wide HR working group to monitor national legislations and share best practices
─Participation in external networks
─Implementation of an internal reporting tool to measure metrics set out by the Directive
─Assessment of internal data and structures for readiness
─Where necessary, adaptation of talent acquisition processes and procedures
Training and skills development
At adidas, we offer a variety of training and skill development programs, combining formal and informal
learning opportunities. Our wide range of ongoing formal learning initiatives is designed to support the
continuous growth of our employees and to strengthen our leadership pipeline.
─Leadership development experiences: Interactive learning sessions designed for every level of
management across all markets and functions. They include our People Leader Essentials (PLE),
Manager Development Experience (MDE), and Director Development Experience (DDE).
─adidas Functional Academies: To address evolving business needs and avoid skill gaps, adidas offers
targeted functional learning, which content is continuously updated in collaboration with internal and
external experts to reflect market trends and employee needs. adidas ensures that its employees are
equipped to perform and adapt in a fast-changing market through regularly reviewed and updated learning
programs.
─Global High Potential (GHIPO) Program: The GHIPO program gives us the opportunity to identify and
develop global leaders who are ready to step up their leadership responsibilities. It aims to strengthen
the participants’ business acumen skills, build peer relationships, and provide cross-functional and
cross-cultural exposure. Through continuous investment in the growth and development of GHIPO
participants, adidas strengthens its leadership succession pipelines across global and local levels. This
investment in talent development helps employees enhance their performance and career growth,
leading to increased loyalty and retention.
─adidas 360°: This tool involves soliciting feedback from multiple sources, including managers, direct
reports, and other stakeholders, to gauge how senior leadership’s behavior is perceived. It provides
valuable and critical feedback, driving both professional and organizational growth.
Our informal initiatives include a global mentoring program and networking through the adidas Virtual Café.
These learning offerings enable employees to connect with others with similar interests and development
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goals. When participating in our informal learning offerings, over 90% of employees said it made them feel
more connected to the people and culture at adidas and would recommend the program to others.
Our global performance development approach, #MYBEST, continued to be a key enabler of our high-
performance culture. In 2025, we focused on enhancing our quality performance conversations, enabling
our people to set clear performance expectations, engage in continuous feedback, and provide holistic,
fact-based, and inclusive assessments.
Employee learning opportunities are aligned with adidas’ strategic objectives and cultural mindset, as
identified through learning needs assessments conducted by academies and senior business stakeholders.
We also use employee surveys to capture relevant insights. Every year, we conduct interviews and present
a summary of findings to senior stakeholders to prioritize additions to our learning portfolio for the year.
Employment and inclusion of persons with disabilities
At adidas, we are committed to fostering an inclusive work environment where every individual is treated
with dignity and respect. We actively work to prevent discrimination of any kind, whether based on gender,
socio-economic background, beliefs, or other personal characteristics. To address this, adidas has
introduced education and upskilling sessions for leaders, equipping them with inclusive leadership
competencies. ‘Leading with Inclusion’ program’s impact since beginning of 2025 is reflected in the
following results:
─over 160 (2024: 160) executives (S level) successfully completing the Inclusion for Transformation
workshops
─over 600 (2024: 300) leaders of our middle management (M1 and M2 level) have also participated in
and completed the Managing Inclusion workshops
─adidas introduced self-service options to ensure all employees are aware of the basics of inclusion and
belonging through the availability of various learning resources and tools.
Our Executive Council for Inclusion and Belonging comprises a diverse group including all members of the
Executive Board and leaders from each market, and it has continued its work since 2024 to increase
accountability for global initiatives, address emerging issues impacting our brand, and drive the execution
of our inclusion and belonging strategy. Within their individual functions and markets, Council members
have committed to providing solutions to inclusion and belonging challenges and identifying and removing
cross-functional and market barriers.
adidas has identified the risks of not addressing diversity, which include losing competitiveness in the job
market. We are continuing a disability hiring project led by HR Talent that will address these risks. It will
allow us to evaluate options, collect and monitor disability related diversity data globally and locally to
understand representation, increase disabled representation in a legally compliant manner, and ensure
workspaces are inclusive to disabled employees. We consider external benchmarks and developments
when setting goals and defining the relevant measures. In addition to complying with local legislation, this
project will help create a greater sense of belonging among employees.
Measures against violence and harassment in the workplace
adidas leverages various tools to resolve negative impacts on its workforce relating to violence,
harassment, discrimination, and retaliation. These tools include coaching, mediation, intervention, and
investigation. Globally, all HRBPs are trained in using these tools on an annual basis. The HR Employee
Relations team and relevant HRBPs are responsible for ensuring that any potential situation is remediated
using the most appropriate conflict resolution tool. More information is provided in this chapter:
►SEE ESRS S1-3 – PROCESSES TO REMEDIATE NEGATIVE IMPACTS AND CHANNELS FOR OWN WORKERS TO RAISE CONCERNS
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To uphold a safe and inclusive workplace, discrimination and harassment cases are followed up with
impacted individuals and tracked. This tracking enables a proactive analysis to help us identify trends and
areas for improvement.
Diversity
adidas is committed to fostering a culture of inclusion and belonging to ensure we continually attract,
develop, and retain top talents from our diverse markets. Through structured initiatives such as targeted
leadership programs, recruiting efforts, and employee-led groups, we create equal opportunities for all
employees to thrive.
─‘ElevateHer’ is a one-year accelerated journey to develop and advocate for the advancement of talented
and high-potential women. It offers sponsorship, exposure and connection opportunities, and practical
learnings to amplify skillsets and confidence. We launched the program in October 2024 across all our
markets and paired each of the 82 participants with a senior leader. ElevateHer opens doors to new
opportunities, and advocates for participants’ growth within our organization. The program tracks the
participants’ retention and development rates (both vertical and horizontal) compared to the rest of the
organization. The first round of the program concluded in October 2025, marking a successful pilot in
which 20% of the participants experienced growth or career advancement. Based on this strong outcome,
the program will continue in 2026.
─We continued supporting and expanding our ERGs throughout the company by developing a new
framework and operating model. ERGs are employee-led networks that give employees with differing
backgrounds and perspectives communities of belonging and togetherness. We have 34 ERGs
worldwide, as well as diversity ambassador teams focused on diversity dimensions such as ethnicity,
gender, LGBTQIA+, experienced generation, faith, disability, and mental health. Participation in these
groups is voluntary and open to all employees.
─Since 2022, our HR team has been committed to delivering three ‘cultural moments’ globally, in addition
to any relevant local moments. We activate against the following global moments:
• March – International Women’s History Month
• June – Pride
• October – Global Week of Inclusion
Each of these cultural moments is structured around three consistent components that shape our global
storytelling and employee engagement approach: inform (updates on progress and new initiatives),
inspire (panel talks, videos, articles, and immersive experiences), and educate (inclusion and belonging
training materials for employees).
─Local moments vary by market and by year and include Lunar New Year, Asian American and Pacific
Islander Heritage Month, Black History Month (in the United Kingdom, Netherlands, and US),
International Day against Homophobia and Transphobia, Juneteenth, Latin Afro-American, Afro-Caribbean,
and Diaspora Women’s Day, Amsterdam Pride, Hispanic Heritage Month, World Mental Health Day, Race
Day, Transgender Day of Remembrance, and International Day of People with Disabilities. In addition, we
acknowledge other cultural moments on an ad-hoc basis through a channel on our internal social media
tool.
adidas uses HR management reports to track progress monthly. This data provides insights into the
achievement of targets and identifies any emerging issues, such as shifts in female senior leadership
representation. We also conduct comprehensive equal pay reviews to monitor gender pay equity.
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Processes through which adidas identifies what action is needed and tracks the effectiveness
of the actions
adidas regularly reviews key HR KPIs, such as recruitment experience, engagement, women in leadership,
and training participation, to guide strategic actions. Senior management evaluates performance trends and
initiates targeted measures when needed.
The ELS survey provides team-level feedback on areas managers can directly influence. Results guide local
action planning, supported by tailored resources. By analyzing action plans and conducting interviews, we
identify trends and gaps, enabling accountability, targeted support, and continuous improvement. With the
current change in the company’s operating model, the approach is being redesigned to enable markets to
take more tangible actions based on the ELS result. The new approach allows for further flexibility and
localization of the survey, insights, and actions. The new approach was piloted in two markets in 2025 to
gather additional feedback and tailor it further to local needs before launching it globally to all regions later
in 2026.
Enterprise-wide risk management procedures further support decision-making through semi-annual
assessments of risks and opportunities across areas like health and safety, diversity, skills development,
and inclusion. When current measures fall short, additional actions are implemented. Review outcomes are
shared with senior leadership and inform our materiality analysis for the Sustainability Statement,
reinforcing adidas’ commitment to transparency, data-driven decisions, and continuous progress.
►SEE RISK AND OPPORTUNITY REPORT
How adidas ensures that its own practices do not cause or contribute to material negative impacts on its own
workforce
The Global Privacy Management Policy states our privacy ambition: adidas is committed to complying with
all relevant privacy laws and regulations and will actively work to identify and close privacy gaps.
The following internationally recognized privacy principles are part of our Global Privacy Framework and shall
be applied in the light of applicable local privacy law and regulations:
─Accountability: The Global Privacy Framework ensures alignment between business strategy and privacy
principles and records how we implement the Executive Board’s privacy commitment.
─Lawfulness and fairness: We are committed to lawful, fair, and transparent processing that ensures
individual rights can be effectively exercised.
─Purpose specification and limitation: We will ensure our data collection and use is limited to appropriate
and defined purposes.
─Data minimization: Personal information we collect will be limited to meet the purpose of the collection
and we will consider pseudonymization, if and where appropriate.
─Use and disclosure: We will establish a culture and practice of respecting privacy in the way we use and
share personal information, both within adidas and with third parties.
─Security: We will implement appropriate technical and organizational safeguards to assure the integrity,
availability, and confidentiality of personal information we store and process.
─Data management: Our data management capabilities will ensure adequate data quality, avoid excessive
data retention, and enable privacy principles from a technical perspective.
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Any activity that could or does involve the processing of personal information must complete a Privacy
Impact Assessment to identify significant privacy risks in high-risk processing activities, define measures to
mitigate these risks, identify further privacy requirements imposed by local laws or regulations, and convert
risk-mitigating measures and further requirements or opportunities into comprehensive implementation
criteria to be signed-off and implemented by the Privacy Action Owner. The Global Privacy Officer is
responsible for taking action in the event of a privacy breach.
Metrics and targets
S1-5 – Targets related to managing material negative impacts, advancing positive impacts,
and managing material risks and opportunities
Working conditions
Health and safety
The development of our workforce health and safety targets is guided by our H&S Manual, ISO 45001
(Occupational H&S Management System) certification, and the ESRS. The certification of ISO 45001 is
issued by the German accreditation office DAkkS (Deutsche Akkreditierungsstelle), and the compliance with
the standard is audited by an external auditor. The 2025 targets were developed in cross-functional and
global working groups involving multiple stakeholders. Additional KPIs were formulated within the health and
safety network across all markets and global HSEE team and were agreed upon and approved. Every
location tracks its own performance. We monitor performance against current data and continuously
enhance our insights through the HSEE operations data strategy. 2026 marks the conclusion of our 2025
targets and the launch of our next five-year objectives with targets for 2030.
►SEE ESRS S1-14 – HEALTH AND SAFETY METRICS
Equal treatment and opportunities for all
Women in leadership
adidas is committed to increasing female representation in leadership positions and furthering equal
employment opportunities. We have established a policy and set measurable, aspirational targets to help
us realize our ambitions for gender balance. We are committed to increasing the global share of women in
leadership positions (Director level and above) to achieve a gender balance of 50% by 2033, from a 2023
baseline of 39.6%.
►SEE ESRS S1-9 – DIVERSITY METRICS
Data on women in leadership is tracked monthly and on a quarterly basis to understand pipeline issues.
Progress toward our women in leadership ambition is shared annually with all employees during Women’s
History Month and reviewed quarterly to ensure ongoing monitoring of opportunities and challenges. As part
of this ongoing transparency and engagement, the latest results were also shared with all employees in
March 2025.
Equal pay
adidas has set a global target of maintaining the equal pay gap level below 5%, which is supported by our
Rewards Strategy. Based on our current calculation methodology, our current overall equal pay gap is below
1%, and we are committed to reducing it further. This target is tracked continuously. Equal pay gap is an
aggregated like-for-like comparison which considers employees in the same country and on the same grade.
Maintaining close collaboration between involved functions (HR Rewards, HR Talent, and HR Business
Partners) as well as investing in a specific internal reporting tool will continue to help us expand our
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methods and analyses toward more granular population data, calculate investment budgets, and invest in
salary adjustments to close existing gaps, where needed.
►SEE ESRS S1-16 – REMUNERATION METRICS
S1-6 – Characteristics of the undertaking’s employees
The total number of employees, reported by headcount and broken down by gender, can be found in the
table below.
S1-6 – Employees by headcount by gender
Headcount
2025
2024
Gender
Male
31,302
30,134
Female
33,586
31,880
Other
23
—
Not disclosed
27
21
Total
64,938
62,035
The total number of employees, reported by headcount and broken down by gender, and limited to
countries where adidas has 50 or more employees, which represent at least 10% of the total global
workforce, can be found in the table below.
2025
2024
2025
2024
2025
2024
2025
2024
Country
China
5,534
5,311
2,340
2,355
—
—
—
—
Germany
4,411
4,472
3,948
3,947
2
—
3
4
United States of America
5,029
4,775
5,645
5,529
—
—
23
8
S1-6 – Employees by headcount in specific countries
Female
Male
Other
Not disclosed
The tables below present the total number of employees by headcount, along with a breakdown by contract
type. Additional details on gender and country distribution are also provided.
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S1-6 – Information on employees by contract type, broken down by gender
Female
Male
Other
Not disclosed
Total
2025
2024
2025
2024
2025
2024
2025
2024
2025
2024
Number of employees by
headcount
Number of permanent employees
31,373
30,106
29,139
28,429
22
—
25
20
60,559
58,555
Number of temporary employees
2,213
1,774
2,163
1,705
1
—
2
1
4,379
3,480
Number of full-time employees
24,509
23,172
23,950
22,863
21
—
7
10
48,487
46,045
Number of part-time employees
9,077
8,708
7,352
7,271
2
—
20
11
16,451
15,990
Number of non-guaranteed hours
employees
1,958
2,591
2,212
3,160
3
—
7
3
4,180
5,754
Total
33,586 31,880 31,302 30,134
23
—
27
21 64,938 62,035
Emerging
Markets
Europe
Greater China
Japan/
South Korea
Latin America
North America
Total
2025
2024
2025
2024
2025
2024
2025
2024
2025
2024
2025
2024
2025
2024
Number of employees by
headcount
Number of permanent
employees
12,128 10,855 17,445 17,402 8,993 8,713 3,931 3,906 6,708 5,985 11,354 11,694 60,559 58,555
Number of temporary
employees
1,291 1,412 1,371 1,068
5
5
465
330
334
346
913
319 4,379 3,480
Number of full-time
employees
11,239 10,251 13,230 13,420 8,996 8,690 2,741 2,640 6,105 5,023 6,176 6,021 48,487 46,045
Number of part-time
employees
2,180 2,016 5,586 5,050
2
28 1,655 1,596
937 1,308 6,091 5,992 16,451 15,990
Number of non-guaranteed
hours employees
604
778
27
223
—
2
—
—
—
— 3,549 4,751 4,180 5,754
Total
13,419 12,267 18,816 18,470 8,998 8,718 4,396 4,236 7,042 6,331 12,267 12,013 64,938 62,035
S1-6 – Information on employees by contract type, broken down by region
The numbers are reported in headcount and extracted from the central system. They reflect the actual
headcount as of December 31, 2025.
Our part-time employment contracts often include employees who, due to different circumstances, require
flexibility around their working time. Part-time work is an effective way to balance professional and family
responsibilities as outlined in our Job Security Company Agreement.
►SEE ESRS S1-4 – TAKING ACTION ON MATERIAL IMPACTS AND APPROACHES TO MANAGING MATERIAL RISKS AND OPPORTUNITIES RELATED TO OWN
WORKFORCE
Employees with non-guaranteed hours are not contractually entitled to a minimum or fixed number of
working hours. While they may be expected to remain available for work as needed, the employer is under
no obligation to provide consistent scheduling. As shown in the table, this type of employment is not widely
practiced at adidas and tends to be more prevalent in specific markets, such as North America and certain
emerging regions, due to local employment customs and regulatory frameworks.
During the reporting period, a total of 16,994 (2024: 17,711) employees left adidas, resulting in an
employee turnover rate of 27.6% (2024: 30%). This total figure reflects terminations across all four
employee groups – Corporate, Distribution Center, Production, and Retail.
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Terminations
Corporate
2,140
2,564
Distribution Center
1,255
1,384
Production
39
59
Retail
13,560
13,704
Total
16,994
17,711
S1-6 – Terminations
2025
2024
Data is sourced from the company’s global HR system as of December 31 of the respective year. The
termination date reflects the final day of the contractual employment relationship. Terminations encompass
both voluntary (employee-initiated) and involuntary separations, including those initiated by adidas or
resulting from the death of an employee. Turnover is calculated across the reporting period by dividing the
total number of terminations over the course of a calendar year by the average headcount for a given
calendar year.
The following tables provide an overview of adidas’ full- and part-time employees, broken down by gender
and region.
S1-6 – Breakdown of adidas full-time employees by gender and region
Female
Male
Other
Not disclosed
Total
2025
2024
2025
2024
2025
2024
2025
2024
2025
2024
Region
Emerging Markets
4,792
4,299
6,431
5,951
16
—
—
1 11,239 10,251
Europe
6,400
6,455
6,823
6,958
4
—
3
7 13,230 13,420
Greater China
6,125
5,862
2,871
2,828
—
—
—
—
8,996
8,690
Japan/South Korea
1,238
1,153
1,503
1,487
—
—
—
—
2,741
2,640
Latin America
2,875
2,360
3,229
2,662
1
—
—
1
6,105
5,023
North America
3,079
3,043
3,093
2,977
—
—
4
1
6,176
6,021
Total
24,509 23,172 23,950 22,863
21
—
7
10 48,487 46,045
S1-6 – Breakdown of adidas part-time employees by gender and region
Female
Male
Other
Not disclosed
Total
2025
2024
2025
2024
2025
2024
2025
2024
2025
2024
Region
Emerging Markets
1,171
1,069
1,009
947
—
—
—
—
2,180
2,016
Europe
3,647
3,401
1,937
1,648
2
—
—
1
5,586
5,050
Greater China
2
19
—
9
—
—
—
—
2
28
Japan/South Korea
1,010
1,002
645
594
—
—
—
—
1,655
1,596
Latin America
500
628
437
678
—
—
—
2
937
1,308
North America
2,747
2,589
3,324
3,395
—
—
20
8
6,091
5,992
Total
9,077
8,708
7,352
7,271
2
—
20
11 16,451 15,990
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S1-8 – Collective bargaining coverage and social dialogue
The percentage of adidas employees covered by collective bargaining agreements is at 22% (2024: 18%).
Data on collective bargaining coverage is collected at a country level. With a status as of November 30,
2025, the number of employees covered by a collective agreement is provided by the designated HR lead
within each respective legal entity. The list of adidas legal entities is sourced from the Supervisory Board
Office and cross-referenced with the previous year’s data to ensure accuracy and completeness. Oversight
of this metric is maintained by an HR team based at headquarters, ensuring global alignment and
governance.
Following the ESRS requirement, significant workforce in a specific country is defined as having at least 50
employees by headcount, representing at least 10% of the company’s total number of employees.
Collective bargaining agreements in the European Economic Area (EEA)
adidas has a significant number of employees in only one country within the European Economic Area (EEA)
- Germany. Accordingly, collective bargaining coverage aligns with the German context and stands at 57.6%
(2024: 53.3%). For the remaining employees subject to the German Co-Determination Act, agreements are
in place with local works councils to ensure representation and compliance. Collective bargaining rights
apply to all professional and management employees (P- and M-level grades), while executive employees (S-
level grades) are governed by individual contractual arrangements and internal policies. adidas decided to
change its membership in the employers' association HDS/L to a non-tariff-binding membership, effective
September 2025. This change had no direct impact on the employee’s terms of employment and did not
affect the collective bargaining coverage rate.
Outside of Germany, procedures are aligned with respective national legislation, ensuring local compliance
and consistency in employee representation.
Collective bargaining agreements outside of the European Economic Area (EEA)
China and the USA are non-EEA countries with a significant adidas workforce. The adidas workforce in these
countries is not covered by collective bargaining agreements.
2025
2024
2025
2024
Coverage rate
0 – 19%
China, United States
of America
China, United States
of America
20 – 39%
40 – 59%
Germany
Germany
60 – 79%
80 – 100%
S1-8 – Collective bargaining coverage
Collective bargaining coverage –
Employees EEA
Collective bargaining coverage –
Employees non-EEA
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S1-9 – Diversity metrics
In 2025, we continued to advance our inclusion and belonging efforts. In line with our global ambition to
achieve gender balance in leadership positions by December 31, 2033, we further strengthened the
pipeline of female talent for senior roles across all markets. As of December 31, 2025, women held 40.7%
of leadership positions at Director level and above globally, with 1,377 (2024: 1,441) women and 2,004
(2024: 2,097) men in these positions. The proportion of female executives (S-level leaders) remained
stable in 2025 compared to the previous fiscal year, reflecting a sustained commitment to achieving
gender balance at the highest levels of leadership.
The following table provides an overview of the distribution of employees by age group, divided into the
categories of under 30 years old, 30-50 years old, and over 50 years old:
2025
2024
Age groups
<30
43%
42%
30 – 50
51%
51%
>50
6%
6%
Total
100%
100%
S1-9 – Distribution of employees by age group
Percentage
The methodology is the same as described above regarding the characteristics of adidas’ workforce.
S1-10 – Adequate wages
All adidas employees are paid an adequate wage.
We mainly used data of our own HR systems and other available data sources.
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S1-14 – Health and safety metrics
S1-14 – Health and safety metrics and targets
2025 target
2025
2024
H&S management system coverage (internally audited and/or 3rd-party certified)
Corporate and DCs (globally): own employees covered by a H&S management system
100%
100%
96%
Own retail stores (globally): own employees covered by a H&S management system
n.a.
17%
10%
Own retail stores (Europe): own employees covered by a H&S management system
100%
100%
n.a.
Fatalities
Number of fatalities as result of work-related injuries and work-related ill health
0
0
0
Accidents
Number and rate of recordable work-related accidents with lost days (LTIR)1
<2.02
151; 1.45
143; 1.37
Ill health
Number of recordable work-related ill health
0
0
0
Days lost
Number of days lost to work-related accidents, ill health, and fatalities2
continuous
improvement
2,474
2,366
1 In 2024, data excluded business travel. Work-related accidents for own retail stores were only reported from June 2024.
2 Target applies to LTIR – rate of recordable work-related accidents with lost days.
Explanatory notes on our reported health and safety metrics and targets
H&S Management System coverage:
─Scope: corporate buildings and DCs, including back office retail (globally) ≥4,500 sqm or ≥50
employees; 100% European own retail stores/showrooms
─Calculation for both corporate buildings and DCs (globally) and global/European own retail stores/
showrooms: number of employees covered by ISO 45001 H&S management system divided by total
number of employees multiplied by 100
Fatalities:
─Scope: all employees and other workers operating at the company’s sites
Accidents:
─Scope: all employees
─Calculation for LTIR: number of work-related injuries with one or more lost days (excluding commuting,
sport, and event accidents) per month multiplied by 1,000,000 hours divided by total working hours per
month – the total rate is the average out of all the rates for twelve months
Ill health:
─Scope: all employees
Days lost:
─Scope: all employees
─Calculation: sum of lost days to work-related accidents (excluding commuting, sport, and event
accidents), ill health and fatalities
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S1-16 – Remuneration metrics (pay gap and total remuneration)
Pay gap
We are committed to fostering a culture of gender equality and equal pay for equal work. Therefore, we
have developed and implemented the various policies, actions, and targets outlined in this report. To
measure our progress and ensure we make well-informed decisions, it was first necessary to have clearly
defined metrics and an in-depth understanding of the generated data.
Following our commitment to equal pay for equal work, we first calculated the equal pay gap. It provides a
like-for-like comparison that considers employees in the same country and on the same grade. Then
applying a weighted average to all calculated pay gaps leads to an overall aggregated equal pay gap of
below 1.0% (2024: <1.0%). This result highlights our efforts to achieve pay equity and our commitment to
addressing any disparities.
However, the pay gap calculation logic as per the ESRS is based on a ‘gender pay gap,’ expressed as per
below formula:
(Average gross hourly pay level of male employees - average gross hourly
pay level of female employees)
x 100
Average gross hourly pay level of male employees
The result of this formula reflects the average pay difference between male and female employees,
expressed as percentage of the average pay level of male employees across all functions, countries, and
grades of our organization. The resulting gender pay gap according to ESRS is 12.4% (2024: 13.3%), mainly
influenced by our share of women in leadership positions. If this share grows while we strive to achieve our
women in leadership ambition, the gender pay gap according to ESRS is expected to decline, while an equal
pay gap may be relatively insensitive to it.
We used our employees’ hourly contractual/target Total Direct Compensation (TDC) data as per the key
date of December 31, 2025. All active employees were included.
Total remuneration
To calculate the total remuneration metric, the median compensation of all employees was determined
based on their annual contractual/target direct compensation (TDC), i.e., contractual base pay, target short
term bonus (STI), and target long term bonus (LTI). We used our employees’ annual contractual/target TDC
data as per December 31, 2025, projected to a full time employment. All active employees were included.
All remuneration components (including typical benefits in cash/in kind) were then determined for the
person with median remuneration. We then compared the total actual remuneration of this person with the
total actual remuneration of the highest paid individual in 2025. Per the Disclosure Requirements of ESRS,
the following formula is applied for the annual total remuneration ratio:
Annual total remuneration for the undertaking's highest paid individual
x 100
Median employee annual total remuneration (excluding the highest - paid individual)
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Based on the above formula, the annual total remuneration ratio of the highest-paid individual to the
median annual total remuneration for all employees is 185 (2024: 177). This ratio is heavily influenced by
adidas’ global footprint and the high share of retail-related roles within the company. When comparing total
actual remuneration to the average among employees in Germany in 2025, as disclosed in our
Compensation Report, the ratio is 61 (2024: 63). Due to our workforce in many locations around the world
being paid in multiple currencies, the remuneration metrics under S1-16 are also influenced by year-on-year
changes in foreign exchange rates.
►ADIDAS-GROUP.COM/COMPENSATION
S1-17 – Incidents, complaints, and severe human rights impacts
In total there were 1,415 (2024: 1,246) incidents filed (via the Fair Play channels) relating to our own
workforce in 2025. Of these, 1,254 (2024: 1,049) incidents (including harassment and discrimination)
relate to working conditions or aspects that fall within the scope of ESRS S1-17.
In 2025, 182 (2024: 145) discrimination-related incidents were recorded, including harassment. This total
comprises 108 (2024: 86) reports of harassment and 74 (2024: 59) reports of discrimination. Each case
was thoroughly investigated in line with internal protocols. Following these investigations, 26 (2024: 22)
harassment cases and 21 (2024: 15) discrimination cases were substantiated within adidas’ own
operations. Confirmed incidents were addressed in accordance with our Consequence Management Policy,
underscoring our commitment to fostering a respectful, inclusive, and safe workplace environment.
In the context of the stated incidents, there were no material fines, penalties, compensation for damages,
or sanctions imposed on the company in 2025.
adidas is made aware of any incidents or concerns through our Fair Play channel. This channel can be used
by employees and external stakeholders to raise any kind of concerns, including human rights violations.
The information on incidents raised, investigations conducted, and their outcomes is maintained in our
Case Management System (CMS). The CMS data can be extracted to report on incidents and outcomes.
Every year, all market/country legal representatives are asked to confirm any fines, sanctions, or
compensations paid in the year under review. This can be compared to CMS data to ensure accuracy and
completeness.
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Workers in the Value Chain
We recognize the importance of operating responsibly along the entire value chain by safeguarding the
rights of the workers who manufacture our products. We apply our influence to affect change wherever we
cause or contribute to human rights impacts, or where human rights issues are linked to our business
activities.
We focus our due diligence on the upstream value chain, where the most significant impacts on workers
occur. We have identified risks and negative impacts related to secure employment, excessive working
hours, fair wages, social dialogue, health and safety, gender equality, equal pay for equal work, violence in
the workplace, diversity, and the risk of child and forced labor.
At the same time, we have identified positive impacts and opportunities, particularly for Tier 1 and Tier 2
workers, to strengthen employment stability and security, improve worker-management dialogue, and
expand access to training and skills development.
Targets
We have set specific social targets to be achieved by 2025, which aimed at reducing negative material
impacts and risks and advancing positive impacts and opportunities for workers in our value chain.
Social impact (S-KPI)1
The social impact rating helps us track impacts on workers in the supply chain, including the areas
of health and safety, wages, gender equality, and working hours.
4S rating or better1
3S rating or better1
2025 result
Target 2025
2025 result
Target 2025
80%
90%
96%
100%
1
On a scale of 1S to 5S, with 5S being the highest rating.
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Gender equality and equal pay for equal work
Human Rights and Environmental Due Diligence (HREDD)
70%
Core Tier 1 suppliers completed e-learning on
Gender Pay Parity in 2025.
We have met our 2025 target to have 100%
of the upstream value chain and our
operations with a system in place to identify
and manage high-risk human rights issues.
We have embedded a comprehensive HREDD
framework and supporting internal
risk-management procedures across
business functions.
Key metrics and actions
The program activities and actions we have taken in 2025 have generated positive outcomes for workers in
our supply chain, with measurable impacts.
Workers Voice (WOVO) grievances
47,200
human and labor rights complaints were shared
by workers through the WOVO platform
99%
of these complaints were successfully closed
by the end of 2025
Women leadership program
Gender equality program
1,600
Female supervisors from 80 factories in
6 countries (Vietnam, Indonesia, India,
Myanmar, China and Cambodia) participated
500
Female supervisors have been promoted to
higher positions because of their participation
in the program
51,000
Workers participated in the Gender Equality
worker survey in 2025
87
Favorable responses to the Gender Equality
worker survey (average score, on a scale of 100)
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ESRS 2 – General disclosures
SBM-2 – Interests and views of stakeholders
Our approach to engagement with our stakeholders is reported under ESRS 2 SBM-2.
►SEE ESRS 2 – SBM-2 – INTERESTS AND VIEWS OF STAKEHOLDERS
SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and
business model
The results of our double materiality assessment concerning material impacts, risks and opportunities for
matters related to workers in the value chain have informed and shaped our business model, such as our
sourcing activities, our choice and retention of business partners, and our reputation as a responsible
company. For example, for sourcing activities, we strengthened partner selection criteria by integrating
human rights due diligence requirements and prioritizing suppliers with proven social compliance
performance.
The material impacts, risks and opportunities (IROs) we have identified – which are linked only to workers in
the upstream value chain – are outlined in the table below. We have identified negative impacts in areas
such as secure employment, working hours, fair wages, social dialogue, health and safety, gender equality,
equal pay, workplace violence, diversity, child labor, and forced labor. At the same time, we see positive
impacts and opportunities – especially for Tier 1 and Tier 2 workers – in areas like secure employment,
social dialogue, and training and skills development.
To ensure business resilience, adidas applies structured risk assessments and enforces robust human
rights due diligence processes. These actions mitigate disruptions and enhance supplier relationships,
while also generating positive impacts for workers and driving long-term resilience. More details are
provided here:
►SEE ESRS S2-4 – TAKING ACTION ON MATERIAL IMPACTS, RISKS AND OPPORTUNITIES RELATED TO WORKERS
Secure employment
Negative
Impact
Actual
n.a.
Upstream
For suppliers with a high dependency on adidas orders, demand volatility and changes in business
volume have a potential negative impact on job security (i.e., triggering layoffs) or reduced working
hours and take-home pay.
Secure employment
Positive
Impact
Actual
n.a.
Upstream
adidas Workplace Standards limit short-term contracting in favor of permanent employment, increasing
workers’ job security and their access to higher pay and benefits, as well as improving the protection of
their legal rights. The manufacturing of footwear and apparel products creates a net benefit by
generating employment for workers along the entire value chain.
Working time
Negative
Impact
Actual
n.a.
Upstream
There are negative impacts on workers if overtime exceeds legal norms or international standards, which
would mean breaching adidas’ Workplace Standards.
Adequate wages
Negative
Impact
Actual
n.a.
Upstream
There are negative impacts on workers in instances where they do not receive at least their legal
minimum wages and benefits. The risk of this impact occurring is greatest in countries with weak
enforcement of wage and social security regulations, or a lack of effective minimum wage setting
mechanisms and social protections.
Social dialogue,
freedom of
association and
collective
bargaining
Negative
Impact
Actual
n.a.
Upstream
There are negative impacts on workers if there exist unlawful limits or prohibitions on their right to form
or join trade unions, to engage in collective bargaining, or to exercise the right to strike, and/or if they
experience trade union membership used as grounds for unjustified discrimination or retaliation.
Social dialogue,
freedom of
association and
collective
bargaining
Positive
Impact
Actual
n.a.
Upstream
adidas generates positive impacts for workers by taking action to avoid restrictions on workers’ freedom
of association and collective bargaining rights to which they are legally entitled under the laws of the
countries in which they operate. adidas supports social dialogue between governments, employers, and
workers' representatives, including trade unions.
SBM-3 – Workers in the value chain and material impacts, risks and opportunities (IROs)
Material matter
Material IRO
Classification
Time horizon
Value chain
Description
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Health and safety
Negative
Impact
Actual
n.a.
Upstream
Workplace accidents or work-related health hazards due to the nature of the work, such as use of
machinery or handling chemicals, negatively impact workers. The most severe impacts are those that
cause serious injury, illness, or death. Such impacts are more likely in countries where there is weak
regulatory enforcement or inadequate monitoring of safety standards.
Working
conditions1
Risk
n.a.
Short-term
Upstream
Short-term risks may stem from non-compliance in our supply chain regarding secure employment,
working time, adequate wages, social dialogue, freedom of association and collective bargaining, health
and safety. Such breaches of our Workplace Standards could lead to negative media and a loss of
reputation.
Gender equality and
equal pay for work
of equal value
Negative
Impact
Actual
n.a.
Upstream
Negative impacts on workers – particularly female – occur when they do not receive equal pay for work
of equal value and/or face other forms of gender discrimination. Negative impacts also occur in cases
where suppliers fail to comply with our Workplace Standards that state, e.g., 'workers must not be
discriminated against on the basis of their gender, marital status, or because they are pregnant or
breastfeeding.'
Training and skills
development
Positive
Impact
Actual
n.a.
Upstream
adidas provides training and skills development for workers in the supply chain that support positive
outcomes such as long-term career progression, job security and stability, which in turn advances local
livelihoods. In our supply chain, we have provided training programs to advance skills development as
part of our supervisor training and women empowerment initiatives.
Measures against
violence in the
workplace
Negative
Impact
Actual
n.a.
Upstream
In cases where workers face physical, verbal, or mental abuse, which may include cruel, inhumane, or
degrading treatment, and/or damage to life or limb, there are material negative impacts. Such impacts
are a direct violation of our Workplace Standards.
Measures against
violence in the
workplace
Risk
n.a.
Short-term
Upstream
Short-term risks may stem from non-compliance in our supply chain regarding violence in the workplace.
Such breaches of our Workplace Standards could lead to negative media and a loss of reputation.
Diversity
Negative
Impact
Actual
n.a.
Upstream
There are negative impacts on workers’ equal opportunities if any form of discrimination in employment
occurs, based on protected characteristics like skin color, religion, beliefs, gender identification, or
discrimination against vulnerable groups such as migrant workers or female workers.
Child labor
Negative
Impact
Potential
Short-term
Upstream
Instances of child labor – while rare – adversely impact children’s rights, their access to and outcomes
of education, and the best interests of the child. This is a zero-tolerance issue that is prohibited in our
own operations and those of our business partners, however, it remains a potential risk in the upstream
supply chain, in particular at the raw material level.
Forced labor
Negative
Impact
Potential
Short-term
Upstream
Compelling a person to work involuntarily through force or intimidation of any kind, including all forms
of slavery or practices akin to slavery, prison labor, indentured labor, or bonded labor, is a zero-
tolerance issue and is strictly prohibited in our own operations and those of our business partners.
However, it remains a potential risk in the upstream supply chain, in particular at the raw material level.
Child labor and
forced labor
Risk
n.a.
Short-term
Upstream
Short-term risks may stem from non-compliance in our supply chain regarding child and forced labor.
Such breaches of our Workplace Standards could lead to negative media and a loss of reputation.
1 Working conditions include secure employment, working time, adequate wages, social dialogue, freedom of association, collective bargaining, and health and safety.
SBM-3 – Workers in the value chain and material impacts, risks and opportunities (IROs)
Material matter
Material IRO
Classification
Time horizon
Value chain
Description
Material risks
To address material risks and monitor compliance with our human rights standards, adidas conducts
systematic monitoring through:
─Supply chain risk mapping
─Regular social compliance audits
─Worker feedback via surveys and grievance mechanisms
─Responsible purchasing practices
─Ongoing engagement with stakeholders, including civil society organizations, trade unions, and
governments
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We also perform annual risk assessments in high-risk sourcing countries and monitor suppliers for human
rights, labor rights, and environmental compliance. Country and factory profiles guide issue prioritization
and determine the frequency of audits and remediation efforts.
Impacts, risks, and opportunities management
S2-1 – Policies related to value chain workers
Our Human Rights Policy outlines our commitment to respecting and promoting human rights across our
upstream value chain and own operations. Our Human Rights Policy identifies salient human rights risks,
including: labor rights, wages, discrimination and harassment, freedom of association and collective
bargaining, child labor, forced labor and human trafficking as well as occupational health and safety.
Our commitment is implemented through our Human Rights and Environmental Due Diligence (HREDD)
system and supported by key policies, including the adidas Workplace Standards – our supply chain code of
conduct outlining our expectations on human rights and employment standards, including those regarding
forced labor, child labor, discrimination, wages, benefits and compensation, working hours, freedom of
association and collective bargaining, worker health and safety, and environmental practices.
The policies in the table below are grounded in international standards such as the International Bill of
Human Rights, the International Labour Organization (ILO) Declaration on Fundamental Principles and
Rights at Work and related conventions, the UN Guiding Principles on Business and Human Rights (UNGPs),
and the OECD Guidelines for Multinational Enterprises. While adidas maintains robust human rights due
diligence processes and risk mitigation measures, cases of non-respect of international labor standards in
the upstream value chain can occur and have occurred during the reporting period. These include:
unauthorized subcontracting, fraudulent practices (e.g., double bookkeeping, falsified wage documents),
repeated wage and benefit violations, non-compliance with minimum wage and overtime laws, health and
safety breaches including a fatality, and instances of gender-based violence. All cases triggered formal
remediation and enforcement mechanisms, including 21 warning letters (17 ‘Warning Letters 1’, four
‘Warning Letters 2’) issued to suppliers.
These enforcement actions reflect our commitment to uphold the UNGPs, ILO Declaration, and OECD
Guidelines across the supply chain. They also reflect our obligations under the
‘Lieferkettensorgfaltspflichtengesetz (LkSG)’ – the German Supply Chain Due Diligence Act. All remediation
efforts are integrated into adidas’ human rights due diligence system to ensure accountability and
continuous improvement.
We have established our Human Rights and Environmental Due Diligence (HREDD) framework to guide
internal risk assessment and risk management processes in accordance with the international standards
mentioned above. This framework is in line with our Human Rights Policy commitments and other regulatory
obligations, including the LkSG. For an overview of our Human Rights and Environmental Due Diligence
(HREDD) processes, please refer to:
►SEE ESRS G1-2 – MANAGEMENT OF RELATIONSHIPS WITH SUPPLIERS
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Workplace Standards
(HR, WC, ET)
Sets contractually binding requirements
applicable for our suppliers, covering health and
safety, labor rights and environmental
protection.
Upstream
(incl. suppliers,
licensees, sub-
contractors)
VP Social &
Environmental
Affairs
ILO Declaration,
model code of
conduct of the
World Federation of
the Sporting Goods
Industry
Direct consultation
with stakeholders
Accessible on
corporate website
and directly shared
with suppliers
Human Rights Policy
(HR, WC, ET)
Defines our commitment to human rights and
the protection of the environment, alongside the
measures implemented to fulfill our Human
Rights & Environmental Due Diligence (HREDD)
responsibilities.
Own operations,
upstream
(incl. suppliers,
licensees, sub-
contractors)
Executive Board and
Chief Human Rights
Officer (CHRO)
UNGPs, OECD MNE
Guidelines,
International Bill of
Human Rights, ILO
Declaration
Direct consultation
with stakeholders
Accessible on
corporate website
and directly shared
with suppliers
Responsible Sourcing &
Purchasing Policy
(WC)
Ensures that sourcing and purchasing decisions
do not conflict with the fulfillment of the
Workplace Standards
Upstream
(incl. suppliers,
licensees, sub-
contractors)
SVP Product
Development &
Sourcing,
VP Social &
Environmental
Affairs
Better Buying
Institute; Fair Labor
Association
Direct consultation
with stakeholders
Accessible on
corporate website
and directly shared
with suppliers
Modern Slavery Policy
Framework & Implementation
Strategy
(HR)
Details how to eradicate forced labor and human
trafficking from operations and supply chain.
Upstream
(incl. suppliers,
licensees, sub-
contractors)
VP Social &
Environmental
Affairs
UNGPs, OECD MNE
Guidelines
Direct consultation
with stakeholders
Accessible on
corporate website
and directly shared
with suppliers
Responsible Recruitment
Policy
(HR, ET, WC)
Outlines processes to eliminate the practice of
migrant workers paying recruitment costs and
fees to secure their employment.
Upstream
(incl. suppliers,
licensees, sub-
contractors)
VP Social &
Environmental
Affairs
The Dhaka
Principles for
Migration with
Dignity
Direct consultation
with stakeholders
Accessible on
corporate website
and directly shared
with suppliers
Guidelines on Employment
Standards
(HR, ET, WC)
Supporting guidelines to make the Workplace
Standards understandable and provide
additional guidance for suppliers to manage
compliance concerning labor issues and
solutions to more complex workplace issues.
Upstream
VP Social &
Environmental
Affairs
ILO Declaration
Direct consultation
with stakeholders
Accessible on
corporate website
and directly shared
with suppliers
Health and Safety Guidelines
(WC)
Provides health and safety guidelines to support
suppliers to comply with the adidas Workplace
Standards.
Upstream
VP Social &
Environmental
Affairs
ILO Declaration
Direct consultation
with stakeholders
Accessible on
corporate website
and directly shared
with suppliers
1 Material matters addressed by policies and guidelines are abbreviated as follows:
WC – Working Conditions
ET – Equal Treatment and Opportunities for All
HR – Human Rights and Other Work-related Rights
S2-1 – Policies related to workers in the value chain
Policies1
Content
Scope
Senior level
responsible
Third-party
standards/
initiatives
Stakeholder
consideration
Availability
S2-2 – Processes for engaging with supply chain workers about impacts
adidas has several processes for engaging with workers in our upstream supply chain – directly and
indirectly – about actual and potential material impacts which may affect their health and safety, well-being,
or may otherwise adversely impact their fundamental human and labor rights. Such processes ensure that
workers can voice concerns and submit complaints or grievances related to material risks and impacts – as
well as the full range of human rights and labor rights risks that workers in the upstream value chain may
face.
Worker perspectives are integrated into adidas’ decision-making through continuous engagement with
worker representatives, including civil society and trade unions, real-time feedback from WOVO (Workers’
Voice) grievance cases and Worker Pulse surveys, and systematic review by the Social & Environmental
Affairs (SEA) team to inform sourcing practices, corrective actions, and strategic priorities.
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Regular engagement occurs with supply chain workers through processes such as the WOVO operational
grievance mechanism and the Worker Pulse survey – conducted twice per year – as well as through regular
engagement with their credible proxies or legitimate representatives via trade unions that are active in the
manufacturing facilities.
►SEE ESRS S2-3 – PROCESSES TO REMEDIATE NEGATIVE IMPACTS AND CHANNELS FOR VALUE CHAIN WORKERS TO RAISE CONCERNS
We also maintain an active and open dialogue with stakeholders – local and international non-governmental
organizations (NGOs), labor rights and human rights advocacy groups, and trade unions, as well as
investors, analysts, national and international government agencies, and academics – to better understand
and address the most significant impacts on supply chain workers and improve our mitigation efforts. We
actively seek stakeholder feedback through our annual stakeholder dialogue.
►SEE ESRS S2-4 – TAKING ACTION ON MATERIAL IMPACTS, RISKS AND OPPORTUNITIES RELATED TO WORKERS
S2-3 – Processes to remediate negative impacts and channels for value chain workers to raise
concerns
We are committed to providing for or cooperating in the remediation of adverse impacts, including those
which we have caused or contributed to through our business relationships. Whenever negative impacts are
identified either through our audit process or through one of the various grievance channels available to
workers, we engage directly with our business partners to support them in remediating the issue and
addressing root causes within a specified period of time.
Monitoring suppliers’ social compliance — identifying negative impacts
adidas outsources most of its production and relies heavily on its upstream supply chain workforce. In
2025, we partnered with 444 Tier 1 manufacturing facilities (2024: 388) and their subcontractors across
nearly 40 countries. Our supply chain spans multiple tiers and includes a diverse mix of directly contracted
suppliers and indirect partners managed through intermediaries, licensees, and agents.
We monitor social compliance of suppliers with a multi-level monitoring and enforcement system guided by
our policies. This approach helps us identify and address risks of harmful working conditions and human
rights violations in our upstream value chain, shaping responsible business practices.
Beyond our suppliers, we also require our licensees – independent partners producing adidas products
under license – to adopt our internal monitoring approach to ensure compliance across indirect supply
chains. Audits are conducted by adidas-approved external monitors to verify the effectiveness of the
compliance programs.
Managing supplier compliance — remediating negative impacts
When an audit identifies that a supplier is not compliant with one or more of the criteria in adidas’
Workplace Standards, a corrective action plan is developed in alignment with best practice guidance on
remediation provided to suppliers. adidas provides or contributes to remedy for material negative impacts
on value chain workers through these corrective action plans, and assesses effectiveness via verification in
follow-up audits, via worker satisfaction surveys, and through key performance indicators such as case
closure rates and recurrence reduction.
If the issues are not sufficiently addressed within the specified time, the supplier will either not be
authorized for production if it is a newly proposed supplier or will trigger adidas’ enforcement process if it is
an existing supplier. When suppliers fail to meet our Workplace Standards, we apply the sanctions and
remedies from our Enforcement Guidelines.
►ADIDAS-GROUP.COM/SUSTAINABILITY/POLICIES
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While we aim to support supplier improvement, unresolved severe or repeated non-compliance may result in
contract termination, following our Termination Guideline, which ensures that the actions are undertaken in
a transparent and ethical manner. When making such a decision, we always seek to balance the adverse
impacts arising from the unresolved non-compliance against the impact of termination on workers,
especially where layoffs may occur. Our Guidelines on Redundancy and Layoffs address risks to secure
employment in such cases.
►ADIDAS-GROUP.COM/SUSTAINABILITY/POLICIES (TERMINATION GUIDELINE) ►ADIDAS-GROUP.COM/SUSTAINABILITY/POLICIES (REDUNDANCY AND
LAYOFFS GUIDELINES)
For complex issues that require additional remedial action – such as child labor – we have developed
specific guidelines for strengthening Human Resources (HR) systems at factory level to prevent child labor,
ensure protection for juvenile workers, and to respond to violations by providing appropriate remedy, if they
occur.
►ADIDAS-GROUP.COM/SUSTAINABILITY/POLICIES
Channels for workers to raise concerns
adidas provides multiple grievance channels for workers in our supply chain and external third parties to
report grievances. These channels include:
─Workers’ Voice (WOVO) – a digital operational grievance platform used across all core Tier 1 supplier
facilities
─Worker Hotlines – direct communication managed by our Social & Environmental Affairs (SEA)
department
─Complaint Procedure for Human Rights and Environmental Impacts – a confidential channel for anyone,
including affected individuals, advocacy groups, and organizations to report human rights and
environmental concerns linked to adidas' operations, products, or services.
Additionally, as part of our membership in the Fair Labor Association (FLA), any third party can report
violations of workers' rights in adidas facilities via FLA’s Third Party Complaint procedure.
►FAIRLABOR.ORG
We prohibit any form of retaliation against workers making complaints about their employment conditions or
individuals or other third-party organizations raising issues related to human rights violations or
environmental damage. This is clearly outlined in our Non-Retaliation clause in the Complaint Procedure for
Human Rights and Environmental Impacts.
adidas suppliers are required to have grievance systems in place where workers can freely and – if they
choose – anonymously submit any complaints or suggestions they may have. This includes the app-based
WOVO platform. In 2025, workers submitted close to 47,200 human and labor rights complaints
(2024: around 35,700), with 99% of these complaints resolved by year-end. Top issues included: internal
communication (approximately 13,300), benefits (approximately 8,300) and general facilities
(approximately 5,800). Worker satisfaction with case resolution rose from 39% in 2019 to nearly 79% in
2025, driven by faster response times – down from 49 hours in 2020 to under 11 hours in 2025.
Through close engagement and cooperation with suppliers, we have increased both awareness of and trust
in the grievance mechanisms made available to workers, particularly the WOVO app. This is evident by the
consistent, widespread usage of the app within our supply chain. We have progressively improved and
expanded the use of this grievance mechanism, and in 2025, more than 402,500 workers employed in 92
manufacturing facilities across ten countries had access, covering 100% of our core Tier 1 manufacturing
partners. adidas tracks the input received through the WOVO platform using KPIs and dashboard reviews,
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case satisfaction ratings, and on-site worker interviews. This enables real-time issue tracking, timely
interventions, and insights into widespread, frequent, or systemic labor challenges. It also informs how
factory management resolves cases and contributes to the supplier social impact (S-KPI) rating.
Workers in our supply chain also have access to worker hotlines managed by our SEA department. In 2025,
we received a total of 65 individual complaints through the SEA worker hotlines from workers in 16
countries. The most common complaints were related to: employment practices (35%), compensation and
benefits (29%), and discrimination and harassment (20%).
Complementing our grievance channels, we use the Worker Pulse survey to capture workers’ perception
and awareness of their labor rights. In 2025, 96 facilities in 13 countries participated, with favorable
responses rising from 78% in 2020 to nearly 91% in 2025.
Feedback from all of these channels informs our due diligence and helps improve our practices, processes,
and remediation efforts.
S2-4 – Taking action on material impacts, risks and opportunities related to workers
Risk mapping and mitigation
We prevent and mitigate actual and potential negative impacts on value chain workers through a robust
human rights due diligence process embedded in our Human Rights and Environmental Due Diligence
(HREDD) system. This system identifies, prevents, and addresses human and labor rights risks across our
operations and supply chain. In 2025, adidas formalized key steps to embed HREDD across our upstream
value chain and own operations, with targeted expansion to high-risk non-trade procurement (NTP) and
downstream logistics.
Our due diligence process prioritizes high-risk locations, processes, and activities where we can influence
outcomes. Country-level risk assessments enable rapid, targeted responses and draw on public databases,
direct engagement with stakeholders, including civil society organizations and trade unions, as well as
direct worker engagement. At factory-level, risk assessment processes include regular audits, social impact
performance (S-KPI) assessments, and factory risk-rating analysis, covering all material human and labor
rights risks, as outlined in our Human Rights Policy and Workplace Standards.
Based on risk mapping, materiality assessments, and grievance data, we identified key areas for targeted
action to mitigate risks and address negative impacts. All actions disclosed in this section correspond to
the material topics identified in our double materiality assessment and apply to workers in our upstream
value chain.
All actions taken during the reporting period were led by the Social & Environmental Affairs (SEA)
department, a specialist function within Global Legal. SEA is responsible for implementing our HREDD
system and ensuring compliance with adidas’ Workplace Standards across the supply chain. The team
comprises 37 full-time experts located in major sourcing countries, Germany, and the United States. Each
member is fully dedicated to due diligence and social and environmental compliance. This global structure
provides local expertise and oversight, enabling adidas to identify, mitigate, and remediate material
impacts effectively.
We systematically track and assess the effectiveness of all actions and initiatives taken during the
reporting period through several mechanisms. This includes: our social impact KPIs program (S-KPI), worker
feedback mechanisms including worker surveys and grievance data, and through stakeholder feedback and
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engagement – ensuring that intended outcomes for value chain workers are achieved and that we work
toward continuous improvement.
Human rights and other work-related rights
Child labor and forced labor
─To address impacts related to child labor in our upstream cotton supply chain, we continued our
partnership with the Fair Labor Association (FLA) on the Harvesting the Future (HTF) – Cotton in India
initiative, targeting child and forced labor in Madhya Pradesh’s cotton sector. In 2025, the project
completed surveys of 16 Child Labor Free Zones and 32 villages, trained field staff on child labor and
health and safety, developed monitoring tools and wage standards, and strengthened multi-stakeholder
engagement and local capacity.
─In 2025, we advanced industry collaboration with the American Apparel & Footwear Association (AAFA),
the FLA, and leading brands to strengthen responsible recruitment and address forced labor risks for
foreign migrant workers (FMWs) in Taiwan. We engaged independent experts to assess recruitment fees
and develop remediation plans, reinforcing our ‘no fee’ commitment. To monitor progress, we launched
worker surveys for direct feedback and transparent tracking. These actions reflect measurable steps
toward addressing forced labor risks and ensuring accountability across the Tier 2 supply chain.
Working conditions
Health and Safety
To address material risks related to health and safety, including workplace accidents and unsafe
conditions, and to strengthen opportunities for improved occupational health and safety, we implemented
the following actions during the reporting period:
─Building on the initiative launched in 2023, we delivered targeted training to enhance machine and
electrical safety for compliance and safety teams at Tier 1 factories in Vietnam and Indonesia, and
expanded coverage to a selected Tier 1 supplier in Cambodia.
─In India, following the 2024 pilot, we continued third-party assessments on machine and electrical safety
for selected local sourcing factories.
─Through the Pakistan Accord on Fire and Building Safety, which we joined in 2023, we supported
workplace safety assessments at supplier facilities in Pakistan and related supplier follow-up actions,
including supporting remedial actions.
─To further reinforce safety systems and mitigate fire safety risks, we implemented a dedicated program
focusing on fire and electrical safety for selected Tier 2 material suppliers – specifically fabric mills, dye
houses, leather tanneries, and component manufacturers. Selected Tier 1 suppliers in Vietnam and
Indonesia also participated.
Fair compensation
To support our Fair Compensation ambitions, in 2025, we focused on key impact areas, including applying
the lever of freedom of association and taking steps to advance our target on gender pay parity. These
actions mitigate risks of wage inequality and enhance opportunities for adequate wages in our upstream
supply chain. For the details of our actions in these respective areas, see the following sections on
freedom of association, gender equality, and equal pay for equal work.
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Freedom of association (FOA) and social dialogue
To mitigate risks related to restrictions on freedom of association and to strengthen opportunities for
effective social dialogue, we implemented the following actions during the reporting period:
─In Cambodia, we continued our collaboration with the Cambodia Arbitration Council, which provided
capacity-building support to factory management and trade union leaders on developing protocols for
labor dispute resolution. This addresses the risk of labor conflicts and supports the opportunity for
constructive industrial relations. To date, eight of our manufacturing partners have participated in this
program and of these, three have reached agreements with their respective trade unions on the
implementation of these protocols.
─In Myanmar, we partnered with the Multi-stakeholder Alliance for Decent Employment in the Myanmar
Apparel Industry (MADE in Myanmar) program to support one of our manufacturing partners in conducting
an open and fair election process for the Workplace Coordination Committee (WCC) to reduce the risk of
worker representation gaps and promoting democratic workplace governance.
─In Indonesia, we delivered training sessions on the FOA Protocol for new manufacturing partners,
mitigating compliance risks and enabling effective implementation of freedom of association standards
within factory operations.
─In El Salvador, we began implementing the Americas Group’s FOA Guidance for Employers across five
Tier 1 suppliers, supported by a local subject-matter expert. This initiative addresses risks of non-
compliance with FOA and industrial relations standards while creating opportunities for stronger
partnerships between factories, workers, and unions.
─In Jordan, we engaged with the FLA, International Labour Organization (ILO) and local stakeholders on the
terms of the current Collective Bargaining Agreement (CBA), which provides a lesser set of rights to
workers in the garment and textile sector compared to other industries and national standards. This
engagement aims to mitigate the risk of unequal treatment of foreign migrant workers. In 2026, an
independent study will be conducted on wage deductions affecting foreign migrant workers, creating an
opportunity for systemic improvement.
Equal treatment and opportunities for all
Gender equality and equal pay for equal work
─Supplier Gender Equality Program: We continue to implement the gender equality program for suppliers
to address risks of gender discrimination and unequal pay, and to create opportunities for inclusive
workplaces. The program includes an annual self-assessment to help suppliers identify gender gaps in
their operating practices and procedures as well as an annual gender equality worker survey to evaluate
worker sentiment on gender equality, and targeted capacity building. In 2025, more than 51,000 (2024:
46,000) workers participated in the worker survey across 102 factories (2024: 105). Since the
program’s launch in 2023, worker survey results have improved, from 85 (out of 100) in 2023 to nearly
87 in 2025. These improvements indicate that the program is delivering tangible benefits for workers by
strengthening gender equality practices, enhancing workplace inclusivity, and fostering a more equitable
working environment.
─Women Leadership Program: We continue to provide tailored training under our Women Leadership
Program. In 2025, more than 1,600 (2024: 1,600) female supervisors from 80 (2024: 76) factories in
Cambodia, China, India, Indonesia, Myanmar, and Vietnam participated in the training. We closely track
the progress of workers graduating from this training initiative and, since 2016, approximately 500
female supervisors have been promoted to higher positions because of their participation in the program.
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─Equal Pay for Equal Work: In 2025, we launched a dedicated Gender Pay Parity e-learning course,
commissioned by adidas and another FLA participating company, in collaboration with the Anker
Research Institute and improvingworklife. The course was designed to raise awareness, build supplier
capacity, and promote equitable compensation practices. It was rolled out across 70% of our core Tier 1
suppliers in 2025, equipping them with tools to assess and address gender-based pay gaps and foster
inclusive workplace policies.
►ANKERRESEARCHINSTITUTE.ORG ►IMPROVINGWORKLIFE.COM
Training and skills development
To mitigate risks of non-compliance and to strengthen opportunities for capacity building and increased
worker awareness of labor standards, we continue to provide regular training and capacity building to
suppliers and workers employed at our suppliers’ facilities, through digital training and targeted in-person
sessions on topics including: our Workplace Standards, labor rights, health and safety, and environment.
In 2025, we conducted 78 training sessions (2024: 104) for 2,419 individuals (manufacturing partners,
licensees, workers and adidas employees). We expanded our use of the FLA’s e-learning materials to
include adidas’ direct supply chain, which include training courses covering topics such as human rights,
forced labor, responsible manufacturing, and worker engagement. We also provided access to the Better
Buying Institute’s e-learning course on responsible purchasing practices to the appropriate cross-functional
teams within adidas and to licensee partners.
Digital training for workers in the supply chain has been successfully rolled out via the WOVO app. The tool
assesses workers’ awareness of their labor rights (e.g., fire safety, harassment and abuse), available
remedies and use of grievance channels. Over 59,500 workers participated in 2025 (2024: 68,800) and
averaged a score of approximately 91 out of 100 in the post-test questions, demonstrating high levels of
worker awareness of their core rights and available remedies.
Cooperation with stakeholder groups
In addition to taking action to address material impacts, adidas actively engages with stakeholders to
inform and strengthen our programs’ effectiveness and our overall approach. We work with leading
organizations to advance capacity-building efforts on supply chain-related topics. Key engagements in 2025
included:
─Americas Group (AG): We continued to actively contribute and play a leading role to this long-standing
multi-stakeholder initiative. Key activities included: (1) Reporting to local labor stakeholders on
compliance with childcare and severance laws and regulations in El Salvador – systemic and widespread
issues we've addressed in partnership with a local women’s organization and trade union federation
since 2016; (2) Hosting in-country stakeholder engagements with labor partners in El Salvador to
strengthen collaboration and transparency; (3) Preparing for the initiative’s responsible conclusion in late
2025, with plans to explore new stakeholder collaborations in 2026.
► MAQUILASOLIDARITY.ORG
─Anker Research Institute (ARI): We continued to support the Anker Research Institute by continuing our
corporate sponsorship, partnering on developing and launching the Gender Pay Parity e-learning program,
and consulting on technical areas of data collection.
►ANKERRESEARCHINSTITUTE.ORG
─Better Buying Institute: We continue to participate in the Better Buying Purchasing Practices Index
(BBPPI). In 2025, we continued collecting supplier feedback through anonymous Better Buying Institute
surveys. Our score was 67 out of 100, consistent with 2024 results. We reviewed the results in
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September 2025 with senior Sourcing leaders, identified areas for improvement, and shared these
insights with suppliers in October 2025.
─Better Work: Over the past three years, we have enrolled 23 Tier 2 material suppliers in Indonesia and
Vietnam in the Better Work program, with 95% of participating factories either improving or maintaining
their compliance performance. Notably, 52% of these facilities demonstrated significant progress,
successfully remediating non-compliance issues related to labor contracts, social insurance, and
workplace safety.
─Fair Labor Association (FLA): We maintained our accreditation as an industry leader with the Fair Labor
Association. In 2025, the FLA also made the evaluation’s scores public for the first time in the
organization’s history via the FLA website for a select number of participating companies, including
adidas.
─International Accord for Health and Safety in the Textile and Garment Industry: We remain a committed
signatory to the International Accord and an active participant in the Pakistan Accord, advancing fire,
building, and electrical safety across our supply chain. In 2025, we strengthened capacity-building efforts
and supported the delivery of a joint training on enhancing the effectiveness of internal audits for Accord
staff and our suppliers in Pakistan.
►INTERNATIONALACCORD.ORG
─MADE in Myanmar: Through our continued support of the MADE program, we have remained committed
to addressing labor risks in Myanmar. In 2025, all our manufacturing partners made significant progress
in implementing the remedial actions identified through the MADE program assessments. Additionally,
MADE provided targeted support to one of our manufacturing partners in conducting an open and fair
election for Workplace Coordination Committee members. The program also shared valuable insights on
wage trends, which we used as a reference for wage benchmarking to help align our partners’
compensation practices with industry standards. These efforts have contributed to greater wage
transparency, fostered constructive dialogue between employers and employees, and strengthened
compliance with international labor standards, despite the challenging operating environment. Our
engagement with MADE underscores adidas’ ongoing commitment to responsible sourcing and human
rights due diligence in high-risk regions.
►MADEINMYANMAR.EU
Beyond programmatic engagement, adidas hosted an in-person stakeholder dialogue in November 2025 at
our headquarters in Herzogenaurach, Germany. The event focused on our current and future strategies to
address the important issues of climate change, circularity, and just transition. The feedback and insights
gained through this engagement will inform future strategy, policy, and systems development on these
topics.
The 2025 stakeholder dialogue builds on the event held in Zurich in November 2024, which focused on
human rights due diligence, sports sponsorships, and biodiversity and deforestation topics. We published a
report summarizing the stakeholder feedback received in 2024 and key areas which will inform our
approach going forward.
►ADIDAS-GROUP.COM/SUSTAINABILITY/REPORTS
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Metrics and targets
S2-5 – Targets related to managing material negative impacts, advancing positive impacts,
and managing material risks and opportunities
Targets and program ambitions
As part of a five-year program cycle, adidas has set program ambitions, achieved by 2025, that collectively
address several material impacts, risks, and opportunities (IROs) for workers in our value chain. They
aimed to mitigate and, where possible, eliminate risks such as unfair wages, excessive working hours, and
health and safety gaps, while advancing positive outcomes like gender equality and equal pay for equal
work. Our program ambitions combine social impact KPIs that cover multiple issues with focused goals on
positive impact areas such as fair compensation and gender equality. Integrated into our due diligence and
supplier programs, these targets have driven measurable progress in protecting and empowering workers,
strengthening resilience, and ensuring continuous improvement across the supply chain.
Human Rights and Environmental Due Diligence (HREDD)
Our 2025 target was to achieve full coverage of human rights due diligence systems across our operations
and upstream value chain, ensuring there are processes in place to manage high-risk human rights issues.
Our HREDD process covers all identified material human rights issues, and the HREDD risk assessment
and identification process helps us to prioritize action on those material topics.
We have met our stated 2025 ambition. We embedded a comprehensive HREDD framework and supporting
internal risk-management procedures across relevant business functions, in alignment with our stated
target. Aligned with the German Supply Chain Due Diligence Act, the system covers our entire upstream
value chain and adidas operations, and is supplemented by targeted coverage of prioritized high-risk
Non-Trade Procurement (NTP) and selected downstream relationships (e.g., transportation and logistics).
Identified high-risk issues, and the measures to address them, are formally reported annually to the Chief
Human Rights Officer (CHRO) and the Executive Board.
Social impact (S-KPI)
The S-KPI helps track material impacts on workers – including: health, safety, wages, gender equality, and
working hours – and supports continuous improvement while ensuring compliance with the Workplace
Standards. The S-KPI is adidas specific and has 15 units of measures (‘UOM’). These include compliance
with threshold and zero-tolerance issues, completion of remediation plans, accident and absenteeism
rates, as well as a range of worker empowerment measures such as resolution and satisfaction rate of
workers’ grievances, participation rate in worker satisfaction surveys, and the ratio of females in mid-
managerial positions. The S-KPI is based on supplier-provided data and, where applicable, validated during
social compliance audits (conducted by internal monitors and in some cases by third-party verifiers).
Our 2025 target was to have 90% of our core Tier 1 suppliers reach a minimum rating of 4S and 100% of
these suppliers reach a minimum rating of 3S (on a scale of 1S to 5S, with 5S being the highest rating).
The thresholds are set as follows: 1S: 0-29%, 2S: 30-59%, 3S: 60-79%, 4S: 80-89%, 5S: 90-100%.
In 2025, 80% of our Tier 1 suppliers achieved a rating of 4S or better (2024: 82%), and 96% reached 3S or
better (2024: 95%). While these results fell short of our goals, they reflect robust performance across most
of our suppliers. Despite extensive support through advisory sessions and training, some suppliers did not
meet expected milestones. Our analysis indicates this is caused by two main factors: (i) delays in
completing remediation of threshold issues identified during audits and (ii) limited capability within the
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suppliers’ compliance teams, particularly among newly onboarded suppliers and those facing high staff
turnover.
At the same time, the performance by leading suppliers demonstrates the positive impact of our S-KPI
framework. Four out of five Tier 1 suppliers achieved higher levels of social compliance standards,
delivering tangible improvements in worker safety and well-being. As we conclude the five-year S-KPI cycle,
these achievements reinforce our commitment to driving continuous improvement across the supply chain.
Fair compensation
We are committed to progressive improvement in compensation across our core Tier 1 suppliers. This
ambition is intended to advance positive impacts and opportunities for workers in our supply chain and
align with our Workplace Standards by providing a decent standard of living that is considered acceptable
by society at its current level of economic development.
To support our ambition, we track wage progress using the Fair Labor Association’s (FLA) Fair
Compensation Wage Data Collection Methodology and Tool. The data collection exercises allow us to
compare wages of our in-scope suppliers against the available country wage benchmarks, such as the
applicable minimum wage and living wage benchmarks. Wage benchmarks vary by country based on their
availability; minimum wage benchmarks are available for all countries, whereas our selected living wage
benchmark, the Global Living Wage Coalition (GLWC)/Anker Research Institute (ARI) living wage
benchmarks are only available in some of the in-scope countries based on where ARI has completed living
wage studies.
To execute our 2025 Fair Compensation strategy, we collected data in three key stages: in 2020 (baseline
year); 2023 (mid-point year); and 2025 (final). To fully evaluate progressive improvement in compensation,
we require full-year data on working hours and wages. As a result, full-year 2025 data will be analyzed in
early 2026. This is in line with previous data collection exercises. More details and information on our
2020 and 2023 wage data collection exercises, including available country wage benchmarks and results,
are available on our corporate website.
This final data collection will allow us to compare results across all three years of the program, evaluate
how factory wages measure up against benchmarks across our strategic timeline, and evaluate progress
and positive outcomes for workers. Our 2025 wage data collection results will be included in the Annual
Report 2026 and on the Fair Compensation page on our corporate website.
Gender equality and equal pay for equal work
Our ambition, set in 2020, is that every core Tier 1 supplier will have secured gender wage parity for
workers by 2025. Since the setting of the target, due to technical challenges and data privacy restrictions
in obtaining comprehensive gender-disaggregated wage data from our supplier factories, we have focused
our actions in support of this target on capacity building and supporting suppliers’ understanding and ability
to improve wage management systems that ensure equal pay for equal work.
In 2025, we delivered the outcomes of a joint collaborative initiative to develop a gender pay parity e-
learning program to enhance sensitivity and understanding of the gender pay gap, in particular equal pay for
equal work. Our goal is to have 100% of our core Tier 1 suppliers subscribed to the FLA e-Learning Portal
complete this e-learning program. In 2025, 70% of our core Tier 1 suppliers enrolled in the e-learning and
100% completed the course. A second phase of the e-learning will be completed in 2026 to ensure 100%
of core Tier 1 suppliers complete the course.
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Engagement of value chain workers in setting targets
We aim to address the topics that are most salient to our business and our stakeholders. To identify these
topics, set targets accordingly, and increase transparency and disclosure, we openly engage with our
stakeholders and consider their views and opinions when making decisions that shape our day-to-day
operations. While workers were not directly involved in setting our 2025 program ambitions, their feedback
– collected through grievance mechanisms and surveys – helps us track progress and evaluate program
effectiveness.
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Affected Communities
We have limited direct impact on surrounding communities, but our upstream supply chain presents the
most significant risks – particularly where factory operations affect local access to clean water and
sanitation or where human rights defenders (HRDs) face retaliation. These issues form our core material
impacts and guide our focus on strengthening supplier practices, community reporting channels, and timely
remediation.
Key metrics and actions
Our 2025 actions focused on safeguarding affected communities by strengthening water and sanitation
protections, ensuring effective community grievance reporting, and taking decisive action to uphold the
rights and safety of human rights defenders.
Community access to water and sanitation
Supporting the freedoms of human rights defenders
In 2025, in response to concerns raised in
Indonesia, we required implicated Tier 1
suppliers to clean up residual waste that had
been dumped improperly, strengthen
oversight of waste vendors, and align
disposal practices with environmental
authorities. We also continued to follow up on
a community complaint from 2024 related to
localized flooding caused by a Tier 2 facility.
All preventive remediation measures at this
facility have now been fully completed.
We continued to monitor potential HRD-
related risks through our third-party
complaints mechanism and to engage with
stakeholders, where relevant. In 2025, we did
not record any HRD rights violations that
required our direct action.
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ESRS 2 General disclosures
SBM-2 – Interests and views of stakeholders
Our approach to engagement with our stakeholders is reported in ESRS 2 SBM-2.
►SEE ESRS 2 – SBM-2 – INTERESTS AND VIEWS OF STAKEHOLDERS
SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and
business model
adidas operates a primarily outsourced global supply chain, extending from strategic manufacturing
partners to component and raw material suppliers, including cotton, leather, and natural rubber. While our
own operations – such as offices, retail stores, and distribution centers – pose limited direct risk to
affected communities, our upstream supply chain presents greater potential for impact.
Through our materiality assessment and stakeholder engagement processes, we have identified actual and
potential impacts on affected communities, particularly in relation to:
─Access to water and sanitation (e.g., groundwater depletion, pollution near supplier facilities, generation
of hazardous waste including chemical waste)
─Human rights defenders (HRDs) (e.g., unfair dismissal, intimidation, or retaliation)
─Indigenous Peoples and communities near raw material production and/or recycling sites
These impacts originate from our business model, which relies on outsourced production in regions where
environmental and human rights risks are more prevalent. Any material negative impacts that occur are
typically individual incidents. They also inform our strategy, leading to targeted due diligence, supplier
requirements, and grievance mechanisms to mitigate and remediate harm.
Affected communities may include:
─HRDs such as trade unionists, environmental advocates, and labor rights campaigners
─Local populations near Tier 1 and Tier 2 supplier facilities
─Communities impacted by logistics and distribution activities
─Indigenous Peoples in proximity to the production of raw materials which enter our supply chain
We engage with stakeholders – including NGOs, trade unions, and advocacy groups – to understand
community concerns and shape responsive actions. Our third-party complaints mechanism and community
reporting protocols provide channels for affected communities to raise concerns, which are investigated
and addressed in line with our Human Rights and Environmental Due Diligence (HREDD) system.
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Water and
sanitation
Negative
Impact
Potential
Short-term
Upstream
There are potential adverse environmental impacts linked to our supply chain that may prevent
community access to clean water and sanitation in the communities where our suppliers operate
(mainly focusing on Tier 2 suppliers, which utilize water-intensive processes as part of their production).
Impacts on human
rights defenders
Negative
Impact
Potential
Mid-term
Upstream
Human rights defenders may be adversely impacted through intimidation, discrimination, or economic
retaliation when raising their concerns (including those that may be linked to our business operations),
particularly in regions where civic freedoms and human rights protections are limited.
SBM-3 - Affected communities and material impacts, risks and opportunities (IROs)
Material matter
Material IRO
Classification
Time horizon
Value chain
Description
Impact, risk and opportunity management
S3-1 – Policies related to affected communities
Community economic, social, and cultural rights (e.g., access to clean water and sanitation) are addressed
through core policies including our Human Rights Policy, Human Rights Defenders Policy, and adidas
Environmental Guidelines. These documents guide actions to minimize impacts on affected communities,
including those related to climate change, biodiversity, water use, hazardous chemicals, and waste.
Our policies align with international standards, including the UN Guiding Principles on Business and Human
Rights, the ILO Declaration on Fundamental Principles and Rights at Work, and the OECD MNE Guidelines.
They also reflect guidance on vulnerable groups such as Indigenous Peoples, women, children, and migrant
workers. adidas has publicly communicated our commitment to respecting Indigenous Peoples in
accordance with the UN Declaration on the Rights of Indigenous Peoples and ILO Convention No. 169. This
is further defined in our Biodiversity and Ecosystems Policy, which requires respect for the rights, lands,
and cultures of Indigenous Peoples and obligates our suppliers to obtain free, prior, and informed consent
(FPIC) for new developments near tribal or disputed lands.
►SEE ESRS E4-2 – POLICIES RELATED TO BIODIVERSITY AND ECOSYSTEMS
Monitoring compliance with these standards is detailed in ESRS S2 – Workers in the Value Chain. For
affected communities, our primary monitoring mechanism is the third-party complaints procedure.
►SEE ESRS S2-3 – PROCESSES TO REMEDIATE NEGATIVE IMPACTS AND CHANNELS FOR VALUE CHAIN WORKERS TO RAISE CONCERNS
Human Rights Policy
(HRDs)
Defines our commitment to human rights and
the protection of the environment, alongside the
measures implemented to fulfill our Human
Rights & Environmental Due Diligence (HREDD)
responsibilities.
All own operations,
upstream
(incl. suppliers,
licensees, sub-
contractors)
Executive Board and
CHRO
UNGPs, OECD MNE
Guidelines,
International Bill of
Human Rights, ILO
Declaration
Direct consultation
with stakeholders
Accessible on
corporate website
and directly shared
with suppliers
Human Rights Defenders
Policy
(HRDs)
Addresses instances where Human Rights
Defenders (HRDs) activities are repressed by
suppliers or others.
Upstream
(incl. suppliers,
licensees, sub-
contractors)
VP Social &
Environmental
Affairs
UN Special
Rapporteur on HRDs
Direct consultation
with suppliers
Accessible on
corporate website
Workplace Standards
(WS, HRDs)
Sets contractually binding requirements
applicable for our suppliers, covering health
and safety, labor rights and environmental
protection.
Upstream
(incl. suppliers,
licensees, sub-
contractors)
VP Social &
Environmental
Affairs
ILO conventions,
model code of
conduct of the
WFSGI
Direct consultation
with suppliers
Accessible on
corporate website
and directly shared
with suppliers
Environmental Guidelines
(WS)
Describes ways to prevent pollution, manage
and control environmental impacts, and avoid
depletion of natural resources; includes water
management.
Upstream
(Tier 1 and Tier 2
suppliers)
SVP Product
Development &
Sourcing
ZDHC wastewater
guideline and ZDHC
MRSL
ZDHC and adidas
suppliers
Accessible on
corporate website
S3-1 – Policies related to affected communities
Policies1
Content
Scope
Senior level
responsible
Third-party
standards/
initiatives
Stakeholder
consideration
Availability
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Guidelines on Employment
Standards
(HRDs)
Describes suppliers’ human rights due diligence
obligations and protections against
discrimination.
Upstream
(incl. suppliers,
licensees, sub-
contractors)
VP Social &
Environmental
Affairs
Various
international
conventions and
standards on
international labor
rights and human
rights
Direct consultation
with stakeholders
Accessible on
corporate website
and directly shared
with suppliers
1 Material matters addressed by policies and guidelines are abbreviated as follows:
WS – Water and Sanitation
HRDs – Human Rights Defenders
S3-1 – Policies related to affected communities
Policies1
Content
Scope
Senior level
responsible
Third-party
standards/
initiatives
Stakeholder
consideration
Availability
S3-2 – Processes for engaging with affected communities about impacts
adidas engages with stakeholders who represent affected communities to inform our due diligence and
support effective remedies. While suppliers are typically the first point of contact for local concerns, adidas
intervenes when credible reports or third-party complaints highlight potential or actual negative impacts.
adidas uses its stakeholder engagement, as stated above, to gain insights into the perspectives of
affected communities. This especially includes vulnerable groups, such as women, migrant workers,
Indigenous Peoples, and other minorities, or those whose circumstances open them up to exploitation or
the abuse of their rights and who may be particularly affected by adverse impacts.
However, we recognize there are challenges in identifying and addressing all potential or actual adverse
impacts on affected communities, including Indigenous Peoples, across our upstream value chain. These
challenges stem primarily from such impacts being concentrated in the upper tiers of our supply chain – at
the raw material or commodity level – where our visibility and direct engagement are limited. To address
these challenges, we are committed to strengthening our due diligence and stakeholder engagement
practices to ensure broader coverage and more effective management of community-related risks.
S3-3 – Processes to remediate negative impacts and channels for affected communities to
raise concerns
Processes to remediate negative impacts
We operate processes to enable and provide remediation for adverse impacts on affected communities,
with dedicated grievance channels for water and sanitation issues and human rights defenders (HRDs),
integrated into our Human Rights and Environmental Due Diligence (HREDD).
For water and sanitation concerns, suppliers must report community complaints through our reporting
mechanism, provide details (complainant, timing, nature of issue), and share investigation outcomes,
corrective actions, and preventive measures, including communication with stakeholders.
For HRDs, we act directly where partners violate rights, engage constructively with governments when state
actions impede HRDs, and address issues raised via our third-party complaints process. We are committed
to being 100% responsive to complaints received and providing timely remedy for any breach of our Human
Rights Policy or Workplace Standards. All cases are tracked, outcomes published annually, and processes
reviewed for effectiveness using stakeholder feedback. A non-retaliation policy protects complainants.
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Channels for affected communities to raise concerns
We provide multiple channels for affected communities and external stakeholders to raise concerns:
─Complaint Mechanism for Human Rights and Environmental Impacts: Enables any third party, including
individuals and organizations, to report human rights or environmental harm. We publish annual updates
on cases and outcomes on our corporate website.
─Supplier Self-Reporting: Under our Major Incident Report Protocol, suppliers must report community water
and sanitation complaints, investigation plans, and follow-up actions to our Social & Environmental
Affairs (SEA) team.
These grievance channels form part of our Human Rights and Environmental Due Diligence (HREDD)
system. We monitor the nature, type and frequency of complaints received to gauge affected communities’
– or their legitimate representatives’ and credible proxies’ – trust and awareness of these processes. We
review their effectiveness annually by reviewing the scope, nature and frequency of the complaints received
through these channels, and we incorporate stakeholder feedback for improvement. All complainants are
protected by our commitment to non-retaliation.
S3-4 – Taking action on material impacts on affected communities, and approaches to
managing material risks and pursuing material opportunities related to affected communities,
and effectiveness of those actions
adidas seeks to prevent material negative impacts on affected communities by enforcing supplier
compliance with environmental standards, requiring free, prior, and informed consent (FPIC) for land-related
developments in the rare instances where these occur in our supply chain, and conducting upstream
human rights due diligence on raw materials. These measures aim to prevent noncompliance with
international standards, such as the UNGPs, the ILO Declaration, or the OECD Guidelines. No severe
noncompliances were identified during the reporting year. Isolated incidents in the supply chain – such as
improper waste disposal impacting local communities – were investigated and remediated.
The actions taken during the reporting period were led by the Social & Environmental Affairs (SEA) team, a
specialist function within Global Legal, which oversees human rights and environmental due diligence and
ensures supply chain compliance with Workplace Standards. This 37-person team operates globally, with
staff based in major sourcing countries, Germany, and the United States, all dedicated full-time to due
diligence and compliance. The SEA team collaborates closely with the Sourcing Sustainability function,
which focuses on remediating environmental impacts and tracking supplier performance against published
targets.
Actions related to water and sanitation
Our actions to address actual or potential negative impacts on community water and sanitation are
embedded in our Human Rights and Environmental Due Diligence (HREDD) process. We manage supplier-
reported cases through our community complaints mechanism, aiming for effective remediation and
preventive measures. In addition, we obligate our suppliers to adhere to strict environmental standards on
air emissions, wastewater discharge, waste disposal, and water use to minimize risks to communities and
ecosystems. These supplier obligations are embedded in our Workplace Standards and are monitored
through a community complaints mechanism, audits and incident tracking. Where systemic issues arise, we
collaborate with industry initiatives and local stakeholders to drive broader change.
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In 2025, several Tier 1 factories in Indonesia were asked by local authorities to review their waste
management practices, particularly regarding potential open dumping or illegal burning, after a community
concern was raised through a local NGO. While most production waste was properly recycled or
co-processed, some residual waste had been improperly dumped due to local restrictions on landfill use.
Corrective actions included clean-up of affected areas, tighter oversight of waste vendors, and consultation
with local environmental authorities to determine compliant disposal methods for non-recyclable residues.
Separately, in October 2025, local media alleged improper handling of hazardous waste at one facility in
Indonesia. Following a government inspection, the allegation was found to be unsubstantiated, with
authorities confirming that the factory maintained appropriate procedures and documentation for hazardous
waste storage and disposal.
We also continued to follow up on a community complaint reported in 2024 concerning a Tier 2 supplier
facility in Indonesia. The complaint alleged that the facility’s operations contributed to localized flooding,
which adversely impacted the surrounding community.
In response, adidas required the facility to implement measures to upgrade its rainwater runoff systems to
prevent future flooding. The supplier completed the remediation actions, which were validated by an
independent third party. Additionally, following an on-site inspection, the local government issued a
confirmation letter. Based on these verified results, the case has been closed, and adidas has
communicated the resolution to the complainant.
Actions related to human rights defenders (HRDs)
Our actions related to HRDs are case-specific and leverage our influence to drive change, including direct
engagement with affected parties – such as labor organizations, NGOs, and authorities, in line with
international human rights standards and local laws. We monitor potential HRD impacts through our third-
party complaints mechanism and other tracking processes. In 2025, we neither identified nor were made
aware of any HRD rights violations. As a result, no specific actions related to HRDs were required.
Reviewing effectiveness of our actions
Our primary focus is on addressing any identified adverse impacts on affected communities that may be
raised through our third-party complaints mechanism and/or stakeholder engagement with credible proxies
and/or legitimate representatives of affected communities. For the former, processes are in place to
validate the resolution of the case with the affected party, which is a means to evaluate the effectiveness
of the corrective/remedial action. Our incident handling procedure lays out guidance to factories on how to
manage issues related to adverse impacts on affected communities regarding water/sanitation, and to
track the management of such cases as they arise.
Metrics and targets
S3-5 – Targets related to managing material negative impacts, advancing positive impacts,
and managing material risks and opportunities
Given the very low frequency of cases that are being managed, we currently do not have time-bound,
outcome-oriented targets with regard to reducing negative impacts on affected communities or advancing
positive impacts on affected communities.
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Consumers and End-Users
At adidas, our business model is centered around our consumers, ensuring we understand and address
what matters most to them by delivering high quality, safe products, reliable service, and meaningful brand
experiences. Through our marketing practices, we embrace diversity in all its forms while upholding our
responsibility to protect consumer data privacy.
We recognize that marketing can influence the mental and psychological well-being of our consumers and
therefore commit to responsible communication. We also ensure that any environmental claims in
advertising are accurate and not misleading, enabling consumers to make informed choices.
At the same time, we remain aware of risks, such as potential privacy violations, which may lead to
administrative fines or legal claims, as well as health and safety risks stemming from non-compliance with
regulatory requirements, which could result in recalls, financial penalties, or reputational damage.
Key metrics and actions
At adidas, we are dedicated to maintaining the highest standards of data protection, safeguarding the well-
being of our consumers, and promoting ethical marketing practices that resonate with our values of
inclusion and belonging. As a result, these actions and commitments are reflected in our daily operations.
Privacy
Health and safety
Responsible marketing practices
Integration of robust privacy
management systems into our
business practices, including
regular audits, employee
training, and the adoption of
security technologies.
Implementation of company-
wide product safety policies
and standards that cover all
aspects of a specific product.
Appropriate and proactive
measures, such as sentiment
analysis or a partner
escalation process, are in
place to safeguard our brand
and ensure that our brand
values are reflected.
Number of product recalls in 2025 related to health and safety
0
Due to the quality of our products and thorough processes, policies, and standards in place,
there were no recorded product recalls in 2025.
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ESRS 2 – General disclosures
SBM-2 – Interests and views of stakeholders
Our approach to engagement with our stakeholders is reported under ESRS 2 SBM-2.
►SEE ESRS 2 – SBM-2 – INTERESTS AND VIEWS OF STAKEHOLDERS
SBM-3 – Material impacts, risks and opportunities and their interaction with strategy and
business model
Privacy
Risk
n.a.
Short-term
Downstream
Failure to implement and maintain effective privacy management, especially in times of strong digital
growth, could result in the inability to effectively convert privacy principles into operational business
processes and thereby the non-compliance with or violation of legal requirements (such as the EU’s
General Data Protection Regulation – GDPR). Additional risks can result from IT security incidents.
Overall, this could lead to administrative fines, individual legal claims, or other administrative action,
such as business operations restrictions upon complaints, audits, or lawsuits.
Health and safety
Risk
n.a.
Short-term
Downstream
We expect an increase in regulatory requirements, e.g., in the EU regarding usage of chemicals. These
(regional) requirements can lead to an increasing risk of non-compliance. Claims of non-compliance
with legal requirements, applicable voluntary or mandatory standards for product quality or product
safety could lead to voluntary or mandatory product recalls, returned stock and lead to penalties, fines,
personal injury claims or reputational damage.
Responsible
marketing
practices
Negative
Impact
Actual
n.a.
Downstream
At adidas, we are committed to fostering an inclusive and positive environment for all our consumers. As
part of our dedication to responsible marketing practices, we recognize the profound impact that these
practices can have on the mental and psychological well-being of our consumers and impacted
communities – either through us or our marketing partners. This includes, e.g., any form of
communication that unfairly targets or excludes certain groups based on race, gender, age, or other
characteristics, and that can have detrimental effects on the mental health and overall well-being of
consumers.
Responsible
marketing
practices
Negative
Impact
Potential
Short-term
Downstream
Environmental claims in advertising should be accurate and not misleading. Consumers should have all
relevant information about the product before making a purchase decision. If this is not the case,
consumers could purchase a product that does not meet their expectations, which could negatively
impact their trust in our brand and leave them financially dissatisfied.
SBM-3 – Consumers and end-users and material impacts, risks and opportunities (IROs)
Material matter
Material IRO
Classification
Time horizon
Value chain
Description
Connection between impacts and risks and adidas’ strategy and business model
Privacy
The effective implementation and maintenance of privacy management are paramount. Failure to convert
privacy principles into operational business processes can lead to violations of legal requirements. Such
incidents could result in administrative fines, individual legal claims, or other administrative actions, such
as business operation restrictions following complaints, audits, or lawsuits.
Responsible marketing practices: discriminative marketing
At adidas, our business model is centered around our consumers. We focus on understanding and
addressing what matters most to them by creating the products they desire, offering the service they
expect, and providing the experience they need. Our goal is to reach sports and fashion enthusiasts
worldwide, ensuring inclusivity regardless of race, gender, age, or other characteristics. Our values,
standards and business model inherently oppose discrimination, as we aim to deliver our products and
services to all potential consumers, embracing diversity in all its forms. We are committed to spreading this
message through our marketing practices, which are essential for building brand desirability and attracting
consumers. Our marketing practices focus on inspirational and innovative concepts that drive consumer
advocacy, build brand equity, and increase demand. By aligning our marketing efforts with our business
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model, we prioritize consumer engagement and loyalty while actively working to prevent any form of
discriminative marketing.
Responsible marketing practices: environmental claims
Regarding environmental claims, we prioritize accuracy and transparency in our marketing messages to
maintain consumer trust and align our business practices with our long-standing commitment to
sustainability, which spans over two decades. We will continue to empower our employees to become
sustainability ambassadors and invite our global consumers to engage and connect with us on
sustainability initiatives.
Scope of consumers and/or end-users
Given the nature of our products and services, all of our consumers and end-users can be subject to the
material impacts or risks outlined in this chapter. Consequently, we do not generally categorize or specify
consumer types.
Regarding privacy, we require users to be of the age of consent (16 and older in the European Union (EU)/
the European Economic Area (EEA)) to use our platforms and provide information. This approach is
designed to minimize privacy risks for children. Generally, we address the following consumers regarding
privacy issues:
─consumers aged 16 and older who use any of the adidas platforms (website, apps),
─consumers aged 16 and older who create a membership account/profile via any of the adidas platforms
(website, apps),
─consumers who interact with our customer service agents via adidas platforms (website, apps), and
─consumers who provide information to our employees at retail stores.
At adidas, we recognize the importance of providing accurate and accessible product-related information to
our consumers and end-users. Through labels, manuals, digital platforms, and customer support, we aim to
ensure that our products can be used safely, preventing any potential damage or misuse.
Our product range, including apparel, footwear, and accessories, is designed to be safe, not inherently
harmful, and does not increase the risk of chronic disease. We conduct rigorous product testing to comply
with safety standards, provide clear usage instructions, as well as maintain full transparency on the
material mix of our products. This commitment is designed to ensure the safety and well-being of our
consumers and end-users.
Additionally, we require all our business relationships and supply chain partners to adhere to high health
and safety standards. As a result, no specific consumers or end-users with particular characteristics, or
those using particular products or services, are at greater risk of harm.
As described above, there are no specific consumer or end-user groups that are more or less vulnerable in
terms of privacy or health and safety concerns. However, regarding brand partnership marketing, we
recognize the importance of understanding how our brand partnership marketing activities may impact our
diverse consumers and end-users, particularly those with specific characteristics or those using particular
products or services. While it is challenging to foresee and manage every potential occurrence, we have
implemented several measures to develop a comprehensive understanding. Our consumers and end-users
include a diverse group of individuals. We acknowledge that brand partnership marketing can influence all
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these groups in various ways. Particularly vulnerable consumers and end-users are those who may be
discriminated against for one or more of the following actual or perceived characteristics:
─race, color, ethnic or national origin,
─age,
─religion or belief,
─disability,
─sex, sexual orientation, pregnancy or related medical conditions,
─gender identity, status, or expression,
─nationality, immigration status, citizenship, or ancestry,
─physical or mental ability, condition or characteristics, or
─any other basis prohibited under local law.
The list is not exhaustive and may be supplemented by local law.
The identified material negative impacts related to responsible marketing practices are isolated incidents
rather than widespread or systemic issues. By ensuring that our marketing efforts are tailored and specific,
we minimize the risk of broad negative impacts on our consumers.
Responsible marketing
practices: discriminative
marketing
Individual – When it comes to our marketing through partnerships, e.g., with other brands, sports teams,
athletes, creative partners, innovation partners, or events, any occurrence of our negative impact on
consumers is neither systemic nor widespread due to the unique and specific nature of our partnerships.
Responsible marketing
practices: environmental claims
Individual – Similarly to the above, any negative impact on consumers resulting from misinformation on
environmental claims is also individual, and neither systemic nor widespread due to the unique and
specific advertisement of individual products.
SBM-3 – Material negative impacts – systemic or widespread
Material matter
Material negative impacts – systemic or widespread
Impact, risk, and opportunity management
S4-1 – Policies related to consumers and end-users
To prevent or mitigate any form of risks or negative impacts on consumers and end-users concerning
privacy, health and safety, and responsible marketing practices, we have several policies in place. We have
established mechanisms to ensure all our policies are regularly revisited and updated as necessary.
Global Privacy Management
Policy
(P)
Outlines adidas' privacy ambition, principles,
and framework and includes adidas’ approach
to deleting personal data. It also sets
expectations for third-party suppliers on
managing personal information for adidas.
Downstream
Global Privacy
Officer
n.a.
n.a.
Available for all
employees
S4-1 – Policies related to consumers and end-users
Policies1
Content
Scope
Senior level
responsible
Third-party
standards/
initiatives
Stakeholder
consideration
Availability
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Information Security Policy
(P)
Defines adidas' strategy to maintain moderate
security risk and regulatory compliance,
ensuring the confidentiality, integrity, and
availability of assets, including information,
data and services, through established
standards and practices.
Downstream
Chief Information
Officer (CIO)
n.a.
n.a.
Available for all
employees
Information Classification
Policy
(P)
Outlines the protection of adidas' information
assets by employees or contractors through
classifying information based on sensitivity and
value, applying suitable security controls for
each level.
Downstream
Chief Information
Officer (CIO)
n.a.
n.a.
Available for all
employees
Access Control Standard
(P)
Defines the requirements of access related
controls (as specified in NIST SP 800-53 Rev. 5)
for employees, contractors or consultants in the
context of adidas.
Downstream
Chief Information
Officer (CIO)
National Institute of
Standards and
Technology (NIST SP
800-53 Rev. 5)
n.a.
Available for all
employees
adidas Policy for the Control
and Monitoring of Hazardous
Substances
(H&S)
Defines clear requirements, handling and
process flow for informing, testing, and certifying
compliance regarding possibly existing critical
hazardous substances in adidas products and
materials.
Downstream
SVP Product
Development &
Sourcing, General
Counsel
WFSGI, IUCN, ILO,
AFIRM
n.a.
Accessible on
corporate website
Sustainable Ingredient
Definition SOP
(R)
Sets the framework for sustainable ingredients
for adidas products, detailing the lifecycle and
roles and responsibilities.
Entire value chain
SVP Product
Development &
Sourcing
Preferred Fiber and
Materials Matrix
from Textile
Exchange
n.a.
Available for all
employees
Brand Partnerships Policy
(R)
Provides information about processes and
guidelines within sports marketing, culture
marketing and product collaborations.
Downstream
SVP Brand
Partnerships
n.a.
n.a.
Available for all
employees
Brand Partnership Escalation
Process
(R)
Outlines the process for addressing critical
partner behavior while avoiding subjective
judgments.
Downstream
SVP Brand
Partnerships
n.a.
n.a.
Available for all
brand partnerships
Sports Marketing Contracts
Policy
(R)
Establishes best practice in respect of the
drafting, negotiation, approval, and
management of sports marketing contracts
involving any of the adidas brands and sports
marketing assets.
Downstream
(all sports
marketing contracts
above defined
threshold globally)
General Counsel
n.a.
n.a.
Available for all
employees
Fair Play Code of Conduct
(R)
Stipulates that every employee and our business
partners shall act ethically in compliance with
the laws and regulations of the legal systems
where they conduct company business and
provides guidance on issues including anti-
corruption, anti-bribery, and whistleblowing.
Promotes a respectful, equitable and inclusive
work environment.
Entire value chain
Executive Board
n.a.
adidas AG Executive
Board and
Supervisory Board,
Works Council
Accessible on
corporate website
1 Material matters addressed by policies and guidelines are abbreviated as follows:
P – Privacy
H&S – Health and Safety
R – Responsible Marketing
S4-1 – Policies related to consumers and end-users
Policies1
Content
Scope
Senior level
responsible
Third-party
standards/
initiatives
Stakeholder
consideration
Availability
With regard to privacy, adidas has policies, standards and blueprints (such as processes, procedures,
guidelines, and manuals) in place, which apply to adidas entities around the globe. In these documents,
adidas has defined an information security management system (ISMS) for the development, introduction,
operation, and further enhancements of adidas information security capabilities. This risk-based approach
ensures that relevant security objectives are met. The ISMS is built on the principles of Govern, Identify,
Protect, Detect, Respond, and Recover (in accordance with the NIST SP 800-53 Rev. 5 framework) to
ensure performance measurement and continual improvement.
Furthermore, adidas is committed to respecting and promoting adherence to human rights throughout the
entire value chain and for its consumers. Human rights are fundamental rights and freedoms for everyone
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based on dignity, fairness, equality, and respect. We operationalize this commitment toward our consumers
through our Fair Play Code of Conduct, which establishes high ethical standards to be adhered to by our
employees and partners in all their activities. The Fair Play Code of Conduct includes, among others, our
zero-tolerance against discrimination and harassment.
S4-2 – Processes for engaging with consumers and end-users about impacts
The adidas Brand Insights department plays a crucial role in streamlining insights across markets,
categories, consumers, and competitors by monitoring, surveying, and tracking consumer behavior. This
department comprises the following teams:
─Consumer Insights, which focuses on understanding broad consumer behavior through bespoke
consumer research with leading agencies in the respective fields, and with the usage of social
intelligence tools,
─Category Insights, which formulates insights based on the specific needs of our product categories,
e.g., Football, Running,
─Brand Insights, responsible for delivering insights on marketing effectiveness and overall brand health by
conducting regular brand funnel market studies surveys which gather comprehensive consumer data.
To gain consumer insights, we mostly use three types of data sources:
─Quantitative (structured) consumer survey data gathered for us from third-party providers (agencies,
software-as-a-service (SaaS) providers). We work with agencies in the field that conduct a brand
perception and brand health survey in various countries every year. This type of data is collected
continuously throughout the year, based on a rigid sampling plan.
─Behavioral data from digital data sources from social media platforms and search engines used by our
target consumer, such as Instagram, TikTok, Google – this data is sourced via SaaS partners who
provide platform access and raw data (dashboards, files, API access). This type of data is always
accessible.
─Qualitative consumer feedback on products, concepts, ideas, looks, and styles from focus groups,
workshops, and in-depth interviews. This data is gathered on an ad hoc basis, depending on the
requirements.
We gather data from consumers who buy technical sports products, branded sportswear, and streetwear,
with a focus on the Gen Z demographic as well as avid athletes and key opinion leaders in their area of
expertise, e.g., outdoor athletes for discussions on trail running shoes, fitness instructors to discuss gym
wear.
This multifaceted approach to insights helps us gain diverse and credible perspectives that inform our
decisions and activities aimed at managing the impact of our responsible marketing practices on our
consumers. These activities are being managed by our Brand Insights team reporting into the SVP Brand
Development.
Furthermore, our Brand Partnership Insights department leverages insights through online platforms and
panel questionnaires to understand how our partners, such as clubs, athletes, and celebrities are
perceived by consumers. We use digital tools and collaborate with agencies that conduct consumer surveys
and collect specific data. This allows us to measure various aspects of our partners, including social media
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performance and brand fit. Additionally, we generate ad hoc reports for specific or special occasions. This
comprehensive approach helps us understand the broader impact of our brand partnerships on consumer
perception. All insights related to our partners are being managed by the Brand Partnerships Operations,
Insights and History Management team reporting into the SVP Brand Partnerships.
Our organization employs a comprehensive approach to assess the effectiveness of our engagement with
consumers and end-users. This process includes evaluating brand heat, consumer demand, and other
relevant metrics to ensure that our strategies are aligned with consumer expectations and preferences.
In partnership marketing, we follow a structured yearly planning process to determine our development
strategies with all our partners. This process involves making informed decisions about (dis)continuing
preexisting partnerships or initiating new ones based on a potential partner’s alignment with our brand
values and objectives.
The outcomes of our assessments and engagements are documented and reviewed to guide future
strategies and decisions. This iterative process helps ensure that our engagement with consumers and
end-users remains effective and aligned with our organizational goals.
S4-3 – Processes to remediate negative impacts and channels for consumers and end-users to
raise concerns
In general, consumers can lodge complaints about any issues they want to address through various
accessible and responsive channels. These channels include:
─Contacts provided by national adidas websites, as also detailed by the EU’s General Product Safety
Regulation (GPSR)
─Direct communication with our Customer Service team and store staff
─Specific adidas websites that are open for questions of any kind
─adidas complaint system (the customer complaint system adiComp tracks all consumer complaints at
point of sales)
─adidas Key Account Management (potential consumer complaints on adidas products addressed to our
wholesalers are channeled back via the respective account management)
─Fair Play webform and hotline (whistleblowing system) – details can be found here:
►SEE ESRS G1-1 – BUSINESS CONDUCT POLICIES AND CORPORATE CULTURE
We track and monitor issues raised and addressed through these various systems to ensure the
effectiveness of our channels. This includes our customer service and the adidas complaint system
(adiComp), which tracks, captures, and handles 100% of incoming consumer complaints and resolutions.
For privacy cases, we use an automated individual rights request tool with KPIs and periodic reporting to
monitor and assess its effectiveness. Customer service is tracked by customer service systems and
processes, while emails to Global Privacy are handled by the Global Privacy team. Our customer service
provider is contractually obligated to handle consumer complaints and requests, with an internal due
diligence process overseen by business stakeholders to ensure compliance and effectiveness.
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The fact that our consumers actively use these channels and reach out to us directly for support
demonstrates their trust in our services. Information on how we protect individuals from retaliation when
they use our processes is presented in ESRS G1 – Business Conduct.
►SEE ESRS G1-1 – BUSINESS CONDUCT POLICIES AND CORPORATE CULTURE
Additionally, our Government Affairs team is responsible for handling cases brought forward by NGOs. The
team aims to ensure that we engage with stakeholders effectively and address their concerns promptly.
As for our business relationships, we support and require the availability of complaint and feedback
channels by focusing on relationship management and accessibility, specifically for key accounts and online
communities. This ensures that our partners are equipped to handle consumer complaints and feedback
effectively.
By maintaining multiple open channels of communication and continuously improving our processes, we
strive to provide effective remedies and uphold our commitment to responsible marketing practices as well
as consumer satisfaction and safety. Details on our actions are presented in the following section.
S4-4 – Taking action on material impacts on consumers and end-users, and approaches to
managing material risks and pursuing material opportunities related to consumers and end-
users, and effectiveness of those actions
The involved departments and teams managing the material impacts and risks in relation to consumers and
end-users are mentioned in detail in the section S4-2 – Processes for engaging with consumers and end-
users about impacts.
Approaches to manage the privacy risk
To mitigate the risk, we have integrated robust privacy management systems into our business practices.
This includes employee training, implementing privacy requirements, adopting security technologies to
protect consumer data, as well as conducting audits. By respecting privacy, we not only comply with legal
standards but also build consumer trust, which is essential for our long-term success.
Furthermore, privacy-related risks are fully considered in the adidas enterprise risk and opportunity
assessment, which sets a standardized approach to identify, evaluate, and handle all relevant risks. To
manage such risks, we identify the needed actions by carrying out dedicated impact assessments on
projects processing consumer data – in addition to our data protection impact assessment as required by
Art. 35 EU GDPR. We furthermore consult applicable local legal requirements. More details can be found in
the Risk and Opportunity Report.
►SEE RISK AND OPPORTUNITY REPORT
Based on the outcome of our assessments, we implement necessary measures to ensure risk mitigation. If
we determine that the risks remain high and cannot be mitigated, we do not proceed with the processing to
ensure minimal risk exposure. To mitigate our risk, we conduct the above-mentioned data protection impact
assessments and implement necessary compliance measures.
We have restrictive system and data access controls in place to ensure that our employees and suppliers
access our systems and data only on a need-to-know basis. In addition, we have internal supplier due
diligence processes in place to mitigate any negative consumer experiences that may result from our data
processing supply chains. We conduct periodic spot checks to determine whether the measures in place
remain sufficient, especially if there are changes in the level of risk that could increase the impact on
individuals.
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The Information Security team, in collaboration with other teams, such as Tech, has dedicated global
programs in place – in addition to its regular services – to implement the aforementioned security controls,
thereby minimizing the privacy risk:
─Cloud Security: The objective of this program and related actions is to implement proactive security
measures to identify and mitigate issues before these materialize into a risk event, minimizing business
disruption. We aim to develop scalable solutions to manage vulnerabilities and secure our cloud
environment. These measures support the implementation of the control framework defined in the
Information Security Policy, its supporting standards, and blueprints.
─Data Security: The objective is to further develop our framework and governance model for data security,
which will lead to improved decision making and the implementation of the required actions to meet
control and regulatory requirements, overall aiming at reducing data-related risks. This supports the
implementation of the data security controls defined in the Information Security Policy, its supporting
standards, and blueprints.
─Ransomware Readiness: This project aims at improving current assessments for the most critical assets
in order to limit operational damage, loss of revenue, legal or regulatory sanctions and reputational
damage to adidas against ransomware extortion. The approach is to further develop technical solutions
for immutable backups and a process to restore/recover. The project supports the backup and recovery
domain of the control framework as defined in the Information Security Policy, its supporting standards,
and blueprints.
─Control Assessment: This is an ongoing service to regularly validate the status of the control maturity
from both the enterprise and system perspectives. Through this activity, we are able to identify
improvement areas for the implemented adidas controls, enabling us to prioritize and implement the
needed controls across the organization.
When a personal data breach is reported to the Cyber Security Incident Response team, it is categorized as
either a confidentiality breach (unauthorized access, use, or disclosure of confidential information), an
integrity breach (unauthorized modification – intentional or unintentional – of information), or an availability
breach (accidental loss of access to, or destruction of, information). An analysis is then conducted to
determine if the breach is likely to impact personal data and adversely affect individuals, such as
consumers. If a potential adverse effect is identified, we take appropriate steps to involve relevant
stakeholders and report the breach to authorities, as applicable. We identify corrective actions to address
significant compromises or vulnerabilities. These actions are executed by respective stakeholders, such as
business or tech teams, to remediate the issues. Follow-up actions are conducted for successful closure
and validation, and lessons learned assessments are organized to incorporate learnings to prevent such
incidents in the future.
While human error cannot be entirely avoided, we take measures to prevent personal data breaches caused
by such errors. We strictly enforce our Fair Play Code of Conduct and our Global Privacy Management Policy,
as well as provide continuous training of our employees. Additionally, we conduct quality control of our
suppliers to ensure that all adidas employees and representatives process consumers’ personal data
appropriately. Furthermore, we continuously improve our data collection and storage processes to ensure
data quality and prevent the fraudulent use of personal data. To minimize technical errors, we monitor and
control our systems through global and local tests of our information security controls by our Information
Security team. These tests validate the effectiveness of our security controls. Moreover, vulnerability
assessments, penetration testing, log monitoring, threat intelligence, and security architecture consulting
are regularly performed.
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Our Data Protection Officer (DPO) reports findings to the Executive Board and necessary stakeholders on a
regular basis. The Privacy team also provides input to Internal Audit, which verifies and audits the privacy
implementation and its corresponding effects on consumers. In the reporting year, no severe human rights
issues or incidents in relation to consumers’ and/or end-users’ privacy rights were reported.
Approaches to manage the health and safety risk
Ensuring compliance with legal requirements and standards for product safety and quality is imperative.
Selling defective products or those that fail to meet safety standards can result in consumer injury, recalls,
penalties, reputational damage, and loss of market access. The increasing regulatory requirements,
particularly in regions like the EU and US, pose additional challenges. These include restrictions on the use
of certain chemicals, import regulations, and stringent sustainability claims. To mitigate these risks, we
apply company-wide product safety policies and standards that ensure compliance with physical and
chemical safety requirements. These policies, developed collaboratively by the Legal and Product
Development & Sourcing departments, are regularly updated and supported by training, with compliance
monitored and enforced by our sourcing organization.
Our approach is anchored by the adidas Policy for the Control and Monitoring of Hazardous Substances,
introduced in 1998. It incorporates strict local requirements and best practices as recommended by
consumer organizations. Updated annually and published internally and externally, the policy is mandatory
for all business partners and informed by ongoing dialogue with scientific organizations. Compliance is
ensured through continuous material testing in our own laboratories and external institutes. Materials that
fail to meet our standards and specifications are rejected.
In addition, over the last years, we reinforced our product safety network to monitor compliance across
business units, developed safety policies and procedures with a strong focus on business entities that
market product safety-sensitive products and launched an internal guidance portal for recall management.
Moreover, in 2025 we started the update of our product compliance database, which houses mandatory
product documentation such as Certificates of Compliance (COC). This proactive approach ensures that we
can respond promptly to regulatory requests and maintain market access for our products.
Finally, our Legal, Social & Environmental Affairs and Government Affairs teams are regularly involved in
advocacy efforts. We actively contribute to industry initiatives, such as the AFIRM’s Restricted Substances
List, and support the development of best practice tools. In 2025, we strengthened our engagement in
public stakeholder consultations with the European Commission and US legislative bodies to help shape
practical regulations. To address increasing US state legislation, including EPA requirements for PFAS, we
enhanced status sharing with retailers, expanded supplier outreach, and improved tracking functionality.
By ensuring we stay updated about regulatory requirements and maintain the needed framework for the
implementation of the adidas Policy for the Control and Monitoring of Hazardous Substances, we ensure
that our business remains resilient and responsive to evolving consumer expectations and regulatory
demands. As a result of these ongoing efforts, we recorded no product recalls related to health and safety
in 2025 (excluding licensed products).
Taking action on the responsible marketing practices impacts
As outlined earlier in this chapter, our marketing practices are a crucial component of our commitment to
responsible marketing. In our brand partnership marketing efforts, we strive to ensure that our
collaborations and partnerships reflect our brand values and maintain consumer trust. To achieve this, we
conduct thorough screenings of potential partners. We take appropriate and proactive measures to
safeguard our brand, which may ultimately result in the termination of business relationships, if necessary.
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We aim to prevent any negative impact on consumers from the outset through our marketing practices. To
both prevent and respond to these impacts, we engage openly with our stakeholders. We provide multiple
channels for consumers to lodge complaints or address issues, as presented in the previous section (S4-3
– Processes to remediate negative impacts and channels for consumers and end-users to raise concerns).
However, if a negative impact occurs despite our preventive measures, we promptly seek to identify the
actions needed to address the impact of our marketing practices, particularly in the areas of discriminative
marketing and environmental claims.
In addition, through our Government Affairs team, we maintain relationships with legislative authorities and
NGOs to ensure compliance with all relevant regulations and standards. Our diligent monitoring procedures
allow us to integrate new requirements into our operations as soon as possible, often before they become
legislated.
We take various measures to prevent and mitigate negative effects associated with discriminative
marketing, particularly in the area of brand partnership marketing. These measures include:
─Social media: We continuously monitor social media to track consumer sentiments and identify potential
issues early.
─Sentiment analysis: By analyzing consumer sentiments, we gain insights into how our brand and
partners are perceived, allowing us to address any negative perceptions promptly.
─Partner escalation process: We have established a partner escalation process to manage and resolve
any issues that arise with our marketing partners, ensuring that any negative impacts are swiftly
addressed.
If a negative impact occurs from brand partnership marketing despite our preventive measures, we tailor
our approach to providing or enabling remedies to the specific circumstances of each case. We assess
each situation individually to determine the most appropriate actions and measures. We commit to acting
promptly and effectively as soon as a case arises, ensuring that we address our material negative impacts
on consumers and end-users in a manner that is responsive to the unique circumstances of each situation.
For example, in cases involving high-profile partnerships, we evaluate the specific impact and take swift
action to address any issues that arise. This may involve direct engagement with the partners, issuing
public statements, or implementing other remedial measures to mitigate the impact and uphold our brand
integrity. The effectiveness of the implemented actions is monitored through the established channels for
engaging with consumers, with insights captured through the use of the different data sources explained in
S4-2 – Processes for engaging with consumers and end-users about impacts.
We are committed to addressing environmental claims responsibly and respecting existing and upcoming
regulation. If, despite our measures and due diligence, an environmental claim does not meet our stringent
standards or is perceived as ambiguous by our consumers, adidas will take corrective action by removing or
adjusting the claim, such as revising product descriptions on e-commerce platforms to ensure accuracy and
transparency.
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Metrics and targets
S4-5 – Targets related to managing material negative impacts, advancing positive impacts,
and managing material risks and opportunities
Privacy risk
Our goal is to comply with applicable privacy laws and regulations. Although we do not have a distinct target
for this ambition, we are dedicated to ensuring that our privacy practices meet high standards and protect
the personal information of our consumers and stakeholders. This commitment is reflected in our daily
operations and the continuous improvement of our privacy policies and procedures.
Health and safety risk
Product safety is imperative. Our ambition is to ensure that 100% of our products are safe. While we do not
have a separate target outlining this ambition, we are committed to managing the risk of selling defective
products that could cause injury to consumers. To mitigate this risk, we have implemented company-wide
product safety policies, as mentioned above.
Responsible marketing practices impacts
Ensuring responsible marketing practices is an ongoing effort that we actively pursue, with several
guidelines and future directions that are currently (re)developed. While we do not have a separate target
outlining this ambition, we strive to comply with current legislative requirements and ensure that our
marketing strategies align with ethical standards and consumer expectations.
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Business Conduct
We consider adequate business conduct to be imperative and have established high ethical standards that
we are committed to upholding. Supplier management is a fundamental aspect of our success, as we do
not produce ourselves, and our Human Rights and Environmental Risk Due Diligence (HREDD) system
supports us in fulfilling our legal obligations.
Key metrics and actions
adidas maintains several standard processes, systems, and practices to ensure that business is
conducted in line with internal policies as well as external legal requirements.
Compliance management system (Fair Play)
Prevention and detection of corruption and bribery
It establishes the organizational framework
for company-wide awareness of our internal
rules and guidelines and for the legally
compliant conduct of our business.
In line with our Fair Play Code of Conduct and
our Compliance Policy, adidas strictly
prohibits all acts of corruption and bribery,
regardless of the identity or position of the
parties involved: adidas does not and will not
engage in bribery or corruption or any activity
that could be perceived as such.
Management of relationships with suppliers
Payment practices
Our HREDD framework guides internal risk
assessment and risk management processes
in accordance with the United Nations Guiding
Principles on Business and Human Rights and
the OECD Guidelines for Multinational
Enterprises. With various supplier
assessment tools as well as our supplier
selection practices, we believe we are well
equipped to ensure we select the right
partner for the success of our business and
to manage adverse impacts on human rights
and on the environment.
60 days
standard payment terms
94%1
on-time payment
0
legal proceedings currently outstanding
for late payments
1 Out of our 54% suppliers that are in line with the 60 days of
standard payment terms.
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ESRS 2 – General disclosures
IRO-1 – Material impacts, risks and opportunities and their interaction with strategy and
business model
Corporate culture
Negative
Impact
Actual
n.a.
Upstream, own
operations,
downstream
Unfair treatment might lead to financial loss and/or negatively impact the well-being of relevant
stakeholder groups, e.g. our employees, suppliers, business partners, and customers.
Corporate culture
Risk
n.a.
Short-term
Own
operations
adidas relies on its people and leaders to achieve strategic goals. Failure to create an inclusive
workplace for all employees that is non-exclusionary and is non-discriminatory, could reduce creativity,
innovation, employee satisfaction, and engagement. This may hinder the ability of adidas to foster a
performance culture, execute its strategy, and meet its objectives, which may ultimately have negative
effects on our financial performance.
Protection of
whistleblowers
Negative
Impact
Actual
n.a.
Upstream
Even with elaborate whistleblower protections in place, there can still be negative personal impacts if
these measures fail in certain cases.
Management of
relationships with
suppliers, including
payment practices
Negative
Impact
Actual
n.a.
Upstream
Managing relationships with suppliers is crucial to maintaining a healthy and sustainable supply chain.
Effective communication and transparency are the foundation of these relationships. It's important to
maintain regular and open dialogue with suppliers, ensuring that any issues can be addressed promptly.
Clearly outlining payment terms and conditions in contracts helps avoid misunderstandings and ensures
that suppliers are fully aware of what to expect.
Prevention and
detection,
including training
Negative
Impact
Actual
n.a.
Own
operations
Unfair market practices, such as biased partner selection and inconsistent commercial terms (payment,
price, delivery, etc.), might negatively impact business partners who have not been given a chance to
present their products or services. This exclusion can lead to missed opportunities, reduced market
presence, reputational damage, and financial challenges.
Prevention and
detection,
including training
Risk
n.a.
Short-term
Own
operations
Allegations and cases of corruption or bribery could result in fines, criminal penalties and civil damage
claims against adidas, its managers or employees, as well as reputational damage to the company.
Allegations or cases of corruption or bribery might involve our business partners or suppliers and their
respective employees, or agents acting on behalf of adidas.
Incidents
Negative
Impact
Actual
n.a.
Upstream, own
operations,
downstream
Unfair market practices, such as biased partner selection and inconsistent commercial terms (payment,
price, delivery, etc.), might negatively impact business partners who have not been given a chance to
present their products or services. This exclusion can lead to missed opportunities, reduced market
presence, reputational damage, and financial challenges.
IRO-1 – Business conduct and material impacts, risks and opportunities (IROs)
Material
matter
Material IRO
Classification
Time horizon
Value chain
Description
Impact, risk and opportunity management
G1-1 – Business conduct policies and corporate culture
We consider compliance with the law as well as with external and internal regulations to be imperative. The
Executive Board sets the tone from the top, and every employee is required to act ethically and in
compliance with the law as well as with internal and other external regulations while executing the
company’s business. Our Fair Play Code of Conduct establishes high ethical standards that we are
committed to upholding. adidas Fair Play aims to prevent a majority of potential compliance issues. For that
reason, we have specific measures to detect and respond to any concerns. We realize, however, that no
compliance system can prevent all violations.
Alongside our Fair Play Code of Conduct, we implement our approach to corporate culture based, inter alia,
on the policies and concepts described below:
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Fair Play Code of Conduct
(C, PW, PD)
Stipulates that every employee and our business
partners shall act ethically in compliance with
the laws and regulations of the legal systems
where they conduct company business and
provides guidance on issues including anti-
corruption, anti-bribery, and whistleblowing.
Own operations (all
employees globally)
Executive Board
n.a.
adidas AG Executive
Board and
Supervisory Board,
Works Council
Accessible on
corporate website
Compliance Policy
(C, PW, PD, I)
Defines i.a., adidas' global stance on anti-
bribery and anti-corruption, gifts and
entertainment, fraud and theft, antitrust and
competition law, conflicts of interest and non-
retaliation. It provides procedures for policy
violations, including the Fair Play Code of
Conduct.
Own operations
CCO
OECD Principles of
Corporate
Governance, OECD
MNE Guidelines, UN
Convention against
Corruption, Anti-
Bribery Convention
and Anti-Bribery
Management
Systems, IDW PS
980
adidas AG Executive
Board and
Supervisory Board,
Works Council
Accessible on
corporate website
Global Training Policy
(PD)
Outlines adidas’ approach to training and its
expectation that employees complete all
mandatory trainings. Monitored through the
Learning Management System (LMS).
Own operations
(all employees with
regular access to the
LMS globally)
Executive Board
member Global
Human Resources,
People and Culture
n.a.
n.a.
Available for all
employees
Responsible Sourcing &
Purchasing Policy
(M)
Defines adidas’ approach to responsible
sourcing and purchasing practices. It ensures
that sourcing and purchasing decisions, and
other supporting processes, do not impede or
conflict with the fulfillment of the adidas
Workplace Standards.
Own operations,
upstream
SVP Product
Development &
Sourcing,
VP Social &
Environmental Affairs
n.a.
Direct consultation
with stakeholders
Accessible on
corporate website
and directly shared
with suppliers
Global Non-Trade
Procurement Policy
(M)
Outlines the global non-trade procurement
(GNTP) processes, roles, and responsibilities
when purchasing indirect/non-trade goods or
services or engaging with third-party suppliers in
scope of GNTP on behalf of adidas.
Own operations,
upstream,
downstream
SVP Global Non-
Trade Procurement
n.a.
Direct consultation
with stakeholders
Available for all
employees
Workplace Standards
(M)
Set contractually binding requirements
applicable for our suppliers’ factories, covering
health and safety, labor rights and
environmental protection.
Upstream
(incl. suppliers,
licensees, sub-
contractors)
VP Social &
Environmental Affairs
ILO conventions,
model code of
conduct of the
WFSGI
Direct consultation
with labor rights
groups
Accessible on
corporate website
and directly shared
with suppliers
Human Rights Policy
(C)
Defines our commitment to respect human
rights and safeguard the environment, alongside
the measures implemented to fulfill our Human
Rights & Environmental Due Diligence (HREDD)
responsibilities.
Own operations,
upstream (incl.
suppliers, licensees,
sub-contractors)
Executive Board and
CHRO
UNGPs, OECD MNE
Guidelines,
International Bill of
Human Rights, ILO
Declaration
Direct consultation
with stakeholders
Accessible on
corporate website
and directly shared
with suppliers
1 Material matters addressed by policies and guidelines are abbreviated as follows:
C – Corporate Culture
PW – Protection of Whistleblowers
M – Management of Relationship with Suppliers
PD – Prevention and Detection
I – Incidents
G1-1 – Policies related to business conduct
Policies1
Content
Scope
Senior level
responsible
Third-party
standards/
initiatives
Stakeholder
consideration
Availability
Compliance Management System (adidas Fair Play)
Our Compliance Management System (CMS) is linked to both the company’s risk and opportunity
management system and our set of internal controls and is overseen by the adidas Chief Compliance
Officer (CCO). As part of our global Fair Play concept, the CMS establishes the organizational framework for
company-wide awareness of our internal rules and guidelines and for the legally compliant conduct of our
business. It underscores our strong commitment to ethical and fair behavior in our own organization and
also sets the parameters for how we deal with others.
The adidas CMS is based on the OECD Principles of Corporate Governance and complies with the OECD
Guidelines for Multinational Enterprises. It is designed to:
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─support the achievement of qualitative and sustainable growth through good corporate governance,
─reduce and mitigate the risk of financial losses or damage caused by non-compliant conduct,
─protect and further enhance the value and reputation of the company and its brand through compliant
conduct, and
─support, together with the Employee Relations team, initiatives fighting harassment and discrimination.
The adidas Fair Play Code of Conduct is accessible on our website, includes guidelines for employee
behavior in everyday work, and is applicable globally for all business areas.
►ADIDAS-GROUP.COM/CORPORATE GOVERNANCE
Our CMS is organized around three pillars: prevent, detect, and respond.
Prevent
The Compliance team regularly reviews and updates the CMS as necessary. The company’s management
shares compliance-related communication, and the Compliance department provides mandatory training to
all corporate employees globally during onboarding and in regular, repeated cycles. The Compliance team
and partners also provide targeted in-person compliance training, including non-corporate employees.
Dedicated trainings cover, i.a., anti-corruption and anti-bribery topics, thereby ensuring training coverage of
functions-at-risk with senior management and newly promoted or hired senior executives across the globe in
order to further enhance the compliance ‘tone from the top,’ as well as the ‘tone from the middle.’
The training is available both virtually (self-led course for corporate employees) and in-person, providing a
foundational understanding of employee behavior and conduct. Completion rates are tracked and reported
to the Audit Committee. In addition, our Regional Compliance Managers and Local Compliance Officers
offer tailored training sessions for specific functions (e.g., anti-trust training for marketing and sales
organization).
At adidas, we have a zero-tolerance policy against bribery and corruption. Every reported incident is
investigated, and appropriate consequences are applied. We have identified that trade and non-trade
procurement as well as brand partnerships pose a particularly increased risk for corruption and bribery. To
mitigate these risks, we have established additional rules for brand partnerships, procurement of trade and
non-trade goods/services, business partner due diligence, along with a continuously evolving internal
control system.
Executive Board and Supervisory Board members are upskilled on our Fair Play Code of Conduct and
compliance matters. This upskilling encompasses in particular:
─Their general duties as specified in the Articles of Association and Rules of Procedure of adidas AG
(including those for the Supervisory Board committees and Executive Board business allocation plan).
─Regulation (EU) No 596/2014 (the ‘Market Abuse Regulation’) and associated responsibilities, such as
insider trading, closed periods, and disclosure of managers transactions.
─The general legal framework, including German Stock Corporation Law and the German Corporate
Governance Code.
The upskilling is part of their onboarding process. Additional training sessions are provided as necessary
throughout their tenure.
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To ensure clarity and consistency in our operations, we further rely on our comprehensive set of rules
comprising mandatory standards for all employees. They are provided via the Global Policy Manual (GPM)
platform to help employees understand:
─the framework defining Dos and Don'ts set by the company,
─the right contacts in our organization for content-related topics, and
─regular communication of new policies and policy updates.
The GPM platform contains information on policies that are categorized as must-read policies, which are
applicable to all adidas employees. All employees must be familiar with these policies. Short policy-
summaries are provided where no further training is available through the GPM platform.
Moreover, we communicate updates to existing policies via our intranet, and in addition, each policy owner
is ultimately responsible to ensure communication and training of their policies to the relevant target
audience. Such communication regularly includes emails to the respective target audience and may include
dedicated Q&A sessions or other formats to familiarize them with the new rules.
Detect – The Fair Play whistleblowing procedures
To promote transparency and maintain high ethical standards, we encourage our employees, business
partners, and customers to report any potential violations of law, ethics, or our Fair Play Code of Conduct to
our Compliance department.
adidas has whistleblowing procedures in place, accessible to both internal and external stakeholders, to
ensure timely detection of potential infringements of statutory regulations or internal guidelines. Employees
can report compliance concerns internally to their supervisor, the CCO, Regional Compliance Managers or
Local Compliance Officers, the relevant HR Manager, or, where applicable, the Works Council. Employees
can also report externally via the independent, confidential Fair Play hotline and webform, which also allow
for anonymous complaints. The Fair Play hotline and webform are available in multiple languages at all
times worldwide, including the services of interpreters, if required. They are promoted digitally and with
posters to reach all our locations around the world.
Since adidas AG is headquartered in Germany, the Fair Play whistleblower hotline and webform comply with
the German Whistleblower Protection Act (‘Hinweisgeberschutzgesetz’) transposing Directive (EU)
2019/1937. Training regarding the whistleblowing system is part of the onboarding training and provided
through various communication measures. Staff receiving the reports is regularly trained in case handling.
The adidas Fair Play Code of Conduct as well as our Compliance Policy (see above for both) and our Anti-
Harassment and Anti-Discrimination Policy47 state that any adidas employee who in good faith reports a
reasonable suspicion of a (potential) compliance concern is protected against any form of retaliation,
regardless of the validity of the suspicion. Conversely, any employee who retaliates or attempts to retaliate
against a fellow employee who has reported or intends to report a suspected or actual compliance incident
or other concern in good faith – including by pressuring or threatening the reporting employee – may be
subject to disciplinary measures. Additionally, any employee found to have made a report with malicious
intent may be subject to disciplinary measures. Reasonable measures to protect whistleblowers from
retaliation will be decided on a case-by-case basis. This may include, among others, confidentiality
assurance based on the need-to-know principle, use of external meeting facilities or secured
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47 Publicly accessible here: ►ADIDAS-GROUP.COM/SUSTAINABILITY
communication media, physical relocation or protection, involvement of public authorities, collaboration with
Human Resources to avoid disciplinary action or other adverse employment consequences.
Respond
Appropriate and timely response to compliance violations is essential. The Compliance team leads all
investigations in cooperation with an established team of Regional Compliance Managers and a global
network of Local Compliance Officers, with further support from Employee Relations (ER) and HR. We track,
monitor, and report potential incidents of non-compliance worldwide. Insights gained from the investigation
of past violations are used to continuously improve the CMS. Where necessary, we react promptly to
confirmed compliance violations, through appropriate and effective sanctions ranging from warnings to
termination of employment contracts. Together with the Employee Relations organization, a key partner in
many compliance matters, especially those related to harassment and discrimination or other HR-related
matters, we use a case management tool allowing both Compliance and ER to effectively document and
process cases as well as report on specific developments in more detail.
►SEE ESRS S1-17 – INCIDENTS, COMPLAINTS, AND SEVERE HUMAN RIGHTS IMPACTS
►SEE ESRS S1-3 – PROCESSES TO REMEDIATE NEGATIVE IMPACTS AND CHANNELS FOR OWN WORKERS TO RAISE CONCERNS
►SEE ESRS S2-3 – PROCESSES TO REMEDIATE NEGATIVE IMPACTS AND CHANNELS FOR VALUE CHAIN WORKERS TO RAISE CONCERNS
►SEE ESRS S3-3 – PROCESSES TO REMEDIATE NEGATIVE IMPACTS AND CHANNELS FOR AFFECTED COMMUNITIES TO RAISE CONCERNS
►SEE ESRS S4-3 – PROCESSES TO REMEDIATE NEGATIVE IMPACTS AND CHANNELS FOR CONSUMERS AND END-USERS TO RAISE CONCERNS
The CCO regularly reports to the Executive Board on the further development of the CMS and on major
compliance cases. In addition, the CCO reports to the Audit Committee on a regular basis.
G1-2 – Management of relationships with suppliers
Supplier management is a fundamental aspect of adidas success as we have outsourced the vast majority
of the production of our products to independent manufacturing partners (trade-related supplier services),
located mainly in Asia. Additionally, we have non-trade-related supplier services that support our operations
but are not directly tied to product manufacturing (such as logistics services, media and marketing
services, office supplies, consumer event services or store constructions etc.). With regard to all of our
suppliers, the highest scored material impacts, risks and opportunities include human rights as well as
environmental impacts and mainly occur in our upstream value chain and to a lesser extent in our
downstream value chain.
►SEE ESRS S2 – WORKERS IN THE VALUE CHAIN ►SEE ESRS S3 – AFFECTED COMMUNITIES ►SEE ESRS E1 – CLIMATE CHANGE
►SEE ESRS E5 – RESOURCE USE AND CIRCULAR ECONOMY
Consequently, our human rights and environmental due diligence (HREDD) system encompasses our
sourcing activities, as well as additional functions within our own operations, including Global Brands,
Global Non-Trade Procurement, and Human Resources. Our HREDD framework guides internal risk
assessment and risk management processes in accordance with the United Nations Guiding Principles on
Business and Human Rights and OECD Guidelines for Multinational Enterprises, operationalizes our Human
Rights Policy commitments, and meets other regulatory obligations including the German Supply Chain Due
Diligence Act. Accountability for HREDD is assigned at a functional level, along with established internal risk
assessment and reporting procedures.
The assurance and risk mitigation activities associated with our HREDD systems support the company in
fulfilling its legal obligations, reducing the risks of penalties for non-conformance with relevant laws. More
importantly, it fulfills adidas’ Human Rights Policy commitment to:
─Take measures, based on due diligence processes, to avoid causing or contributing to adverse human
rights impacts through our own activities, and to address and remediate such impacts when they occur.
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─Seek to prevent or mitigate adverse human rights impacts that are linked to our operations, products, or
services by our business relationships, even if adidas has not contributed to those impacts.
─Exercise our leverage, and increase such leverage, where necessary, to address adverse human rights
impacts arising out of our business relationships.
Trade-related supplier management
Our global supply chain extends through various tiers, with many diverse types of business partners,
including directly contracted suppliers, as well as indirect relationships managed through intermediaries,
licensee, and agents.
While we provide our manufacturing partners with detailed specifications for production and delivery, they
possess expertise in cost-efficient, high-volume production of footwear, apparel, and accessories.
In 2025, we worked with 123 independent manufacturing partners (2024: 124) that were producing in 279
manufacturing facilities (2024: 283). The majority (78%) of our independent manufacturing partners is
located in Asia (2024: 78%). We value long-term relationships: 65% of our independent manufacturing
partners have worked with adidas for at least ten years (2024: 68%), and 37% have a tenure of more than
20 years (2024: 37%).
Relationship with independent manufacturing partners
Footwear
Apparel
Accessories
Total
2025
2024
2025
2024
2025
2024
2025
2024
Number of independent manufacturing
partners1
29
30
67
67
36
36
123
124
Relationship < 10 years
38%
40%
34%
28%
28%
28%
35%
32%
Relationship 10 – 20 years
24%
23%
30%
34%
31%
31%
28%
31%
Relationship > 20 years
38%
37%
36%
37%
41%
42%
37%
37%
1 Includes one independent manufacturing partner who produces both footwear and apparel, one independent manufacturing partner who produces both footwear and accessories,
five independent manufacturing partners who produce both apparel and accessories, and one independent manufacturing partner who produces footwear, apparel, and
accessories.
We have established the Responsible Sourcing & Purchasing Policy, which defines our approach to
responsible sourcing and purchasing practices within ten buyer commitments we make to our suppliers.
One important commitment is on fair terms of payment, including making on-time payment within agreed
timeframes. Other commitments include building long-term partnerships with supply chain partners who
share our values and commitment, e.g., to the adidas Workplace Standards. The ten buyer commitments
were integrated into the adidas Responsible Sourcing & Purchasing Practices Policy in 2021. Since 2019,
we have also been a member of the Better Buying Institute, which allows us to collect anonymous feedback
from our manufacturing partners and continuously refine our purchasing practices.
Non-trade-related supplier management
In 2025, we continued to embed our HREDD system across the business to identify and manage high-risk
human rights issues. This includes the ongoing maturing of internal risk management procedures in the
area of non-trade procurement, and the continued use of the EcoVadis sustainability assessments tool to
evaluate the sustainability management systems of non-trade suppliers – both upstream and downstream –
and, where required, engage prioritized partners on performance improvement plans.
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adidas has a Global Non-Trade Procurement Policy that outlines and standardizes the Global Non-Trade
Procurement (GNTP) processes and roles and responsibilities when purchasing indirect/non-trade goods or
services or when engaging with third-party suppliers in the scope of GNTP on behalf of adidas. Its objective
is to optimize budget usage, ensure efficient purchasing processes, enhance transparency, minimize legal
risks and improve supplier performance. To provide services to adidas, suppliers must have their data
registered in our main Enterprise Resource Planning (ERP) system before any purchases or invoice
payments can be processed. adidas’ standardized GNTP processes and policy thus create fair and equal
opportunities as well as a stable business environment for all GNTP-related third-party suppliers, in
particular for small and medium-sized enterprises that rely on contractual payments due to limited financial
flexibility.
Social and ecological criteria in supplier selection
With our HREDD system, various supplier assessment tools, such as EcoVadis sustainability assessments,
the Exiger legal compliance tool as well as our trade-related supplier selection practices, we believe we are
well equipped to ensure that we select the right partner for the success of our business and to manage
adverse impacts on human rights and on the environment. At the same time, these tools are also used to
ensure that existing suppliers comply with human rights standards and environmental protections. In the
case of unresolved severe or repeated non-compliances, adidas reserves the right to terminate the
collaboration with the supplier.
Our Code of Conduct for suppliers, the Workplace Standards, are contractually binding requirements
applicable to our suppliers’ factories, covering health and safety, labor rights and environmental protection.
They are also applicable to our non-trade-related suppliers, where relevant. The Workplace Standards draw
from international law and the International Labour Organization (ILO) conventions and follow the Code of
Conduct of the World Federation of the Sporting Goods Industry (WFSGI).
Supporting guidelines make the Workplace Standards understandable and provide additional guidance for
our suppliers, to find effective solutions to workplace problems, including material risks and impacts such
as occupational health and safety. These guidelines provide practical guidance on how to implement the
Workplace Standards e.g., in a factory. The Guidelines on Employment Standards, together with the
Guidelines on Health & Safety and Environment, remain our essential guidance for business partners on
managing issues regarding labor conditions and workplace practices.
G1-3 – Prevention and detection of corruption and bribery
In line with our Fair Play Code of Conduct and our Compliance Policy, adidas strictly prohibits all acts of
corruption and bribery, regardless of the identity or position of the parties involved: adidas does not and will
not engage in bribery or corruption or any activities that could be perceived as such. This means that all
employees must abstain from any acts of corruption or bribery, whether directly or indirectly via the means
of any intermediaries.
As anti-corruption and anti-bribery are integral components of our CMS for detecting and addressing such
cases, the established procedures (based on the three pillars Prevent, Detect, Respond) also apply to
incidents of corruption and bribery. Detailed information on our CMS can also be found here:
►SEE ESRS G1-1 – BUSINESS CONDUCT POLICIES AND CORPORATE CULTURE
Our commitment is further reinforced by our onboarding training on the Fair Play Code of Conduct that all
employees are required to complete. Therefore, 100% of the corporate employees, which include the
material functions at risk, are covered by the Fair Play Code of Conduct onboarding training. In addition, we
offer comprehensive global training modules as well as specialized training on anti-bribery and anti-
corruption topics by Regional Compliance Managers and Local Compliance Officers. Details on upskilling for
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the Fair Play Code of Conduct and compliance matters for the Executive Board and Supervisory Board
members can be found in the ‘Prevent’ section, which describes our CMS.
►SEE ESRS G1-1 – BUSINESS CONDUCT POLICIES AND CORPORATE CULTURE
We conduct trend analyses to ensure that we learn from cases, provide necessary interventions, and
strengthen our internal processes to prevent any reoccurrences. Additionally, we continuously update our
training programs to reflect lessons learned.
We empower our Compliance team to manage all cases, including allegations against senior leaders.
Investigations are conducted with the highest level of professional skill, ensuring independence, including
leveraging external resources where required.
The Compliance team is committed to conducting fair investigations with impartial investigators, ensuring
that all parties involved are treated with respect. Any potential conflicts are managed promptly, and our
CMS also includes built-in controls to restrict access of anyone who may be involved, including members of
the Compliance team.
The Compliance team reports all cases of corruption and bribery to the CCO, the Executive Board, or the
Supervisory Board/Audit Committee, as appropriate.
Metrics and targets
G1-4 – Incidents of corruption or bribery
There were no convictions and no fines for violation of anti-corruption and anti-bribery laws in the reporting
period.
We are constantly reviewing our procedures to prevent, detect, and combat allegations or incidents of
corruption and bribery, including our procurement process.
Data on fines, penalties or convictions related to violations of anti-bribery and anti-corruption laws as well
as any legal proceedings for late payments has been collected and confirmed by the Local Compliance
Officers of each legal entity.
G1-6 – Payment practices
adidas values the relationship with all of its suppliers and aims for a balanced approach to meet market
conditions with regard to payment terms for all its suppliers. Consequently, we do not have the capability to
identify small- and medium-sized suppliers in our systems yet. In 2025 we continued our efforts to work on
a solution. Until this is resolved and to still comply with ESRS requirements, we are working with the
assumption to report the payment terms that more than half of our suppliers have, which should cover a
significant portion of small- and medium-sized suppliers as well:
adidas’ standard payment term is 60 days from the invoice receipt date, and 54% (2024: 51%) of our
suppliers are aligned with these terms. These 54% are paid on average within 65 days (2024: 68 days),
and 94% (2024: 92%) of the payments to these suppliers are processed on time.
Among our entire group of suppliers, there were zero cases of legal proceedings for late payments
registered in 2025.
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5
CONSOLIDATED
FINANCIAL STATEMENTS
Consolidated Statement of Financial Position
309
Consolidated Income Statement
311
Consolidated Statement of Comprehensive Income
312
Consolidated Statement of Changes in Equity
313
Consolidated Statement of Cash Flows
314
Notes
315
Notes to the Consolidated Statement of Financial Position
335
Notes to the Consolidated Income Statement
385
Additional Information
392
Shareholdings
407
Responsibility Statement
410
Copy of the Auditor’s Report
411
Assurance Report of the Auditor – Group Sustainability Statement
420
ANNUAL REPORT 2025
Consolidated Statement of Financial Position
Assets
Cash and cash equivalents
04
1,617
2,455
(34.1%)
Accounts receivable
05
2,634
2,413
9.2%
Other current financial assets
06
518
950
(45.4%)
Inventories
07
5,832
4,989
16.9%
Income tax receivables
34
167
101
66.1%
Other current assets
08
1,208
997
21.2%
Total current assets
11,977
11,904
0.6%
Property, plant, and equipment
09
1,973
2,133
(7.5%)
Right-of-use assets
10
2,605
2,779
(6.3%)
Goodwill
11
1,203
1,275
(5.7%)
Other intangible assets
12
443
426
3.9%
Long-term financial assets
13
353
340
3.6%
Other non-current financial assets
14
217
234
(7.2%)
Deferred tax assets
34
1,077
1,272
(15.4%)
Other non-current assets
15
415
291
42.5%
Total non-current assets
8,285
8,751
(5.3%)
Total assets
20,262
20,655
(1.9%)
adidas AG Consolidated Statement of Financial Position (IFRS) € in millions
Note
Dec. 31, 2025
Dec. 31, 2024
Change
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Liabilities and equity
Short-term borrowings
16
645
570
13.3%
Accounts payable
2,910
3,096
(6.0%)
Current lease liabilities
19
603
607
(0.7%)
Other current financial liabilities
17
335
191
75.0%
Income taxes
34
357
334
6.9%
Other current provisions
18
1,208
1,538
(21.4%)
Current accrued liabilities
20
2,383
2,659
(10.4%)
Other current liabilities
21
652
598
8.9%
Total current liabilities
9,094
9,593
(5.2%)
Long-term borrowings
16
1,996
1,915
4.3%
Non-current lease liabilities
19
2,310
2,495
(7.4%)
Other non-current financial liabilities
22
7
1
413.9%
Pensions and similar obligations
23
106
144
(26.5%)
Deferred tax liabilities
34
45
133
(65.8%)
Other non-current provisions
18
436
353
23.6%
Other non-current liabilities
24
143
154
(7.0%)
Total non-current liabilities
5,043
5,194
(2.9%)
Share capital
179
179
0.1%
Reserves
(161)
522
n.a.
Retained earnings
5,758
4,775
20.6%
Shareholders’ equity
25
5,776
5,476
5.5%
Non-controlling interests
27
349
392
(10.9%)
Total equity
6,125
5,867
4.4%
Total liabilities and equity
20,262
20,655
(1.9%)
The accompanying Notes are an integral part of these consolidated financial statements.
adidas AG Consolidated Statement of Financial Position (IFRS) € in millions
Note
Dec. 31, 2025
Dec. 31, 2024
Change
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Consolidated Income Statement
Net sales
36
24,811
23,683
4.8%
Cost of sales
12,006
11,658
3.0%
Gross profit
12,804
12,026
6.5%
(% of net sales)
51.6%
50.8%
0.8pp
Royalty and commission income
81
81
(0.2%)
Other operating income
29
41
174
(76.6%)
Other operating expenses
09, 12, 30, 31
10,871
10,945
(0.7%)
(% of net sales)
43.8%
46.2%
(2.4pp)
Marketing and point-of-sale expenses
3,079
2,841
8.3%
(% of net sales)
12.4%
12.0%
0.4pp
Distribution and selling expenses
5,877
5,936
(1.0%)
(% of net sales)
23.7%
25.1%
(1.4pp)
General and administration expenses
1,885
2,138
(11.8%)
(% of net sales)
7.6%
9.0%
(1.4pp)
Sundry expenses
23
44
(47.4%)
(% of net sales)
0.1%
0.2%
(0.1pp)
Impairment losses/(gains) (net) on
accounts receivable and contract assets
7
(15)
n.a.
Operating profit
2,056
1,337
53.8%
(% of net sales)
8.3%
5.6%
2.6pp
Financial income
32
74
101
(26.6%)
Financial expenses
32
310
317
(2.0%)
Income before taxes
1,820
1,121
62.3%
(% of net sales)
7.3%
4.7%
2.6pp
Income taxes
34
443
297
49.0%
(% of income before taxes)
24.3%
26.5%
(2.2pp)
Net income from continuing operations
1,377
824
67.2%
(% of net sales)
5.6%
3.5%
2.1pp
Gain from discontinued operations, net of tax
03
8
8
1.7%
Net income
1,385
832
66.6%
(% of net sales)
5.6%
3.5%
2.1pp
Net income attributable to shareholders
1,340
764
75.4%
(% of net sales)
5.4%
3.2%
2.2pp
Net income attributable to non-controlling
interests
45
68
(33.6%)
Basic earnings per share from continuing
operations (in €)
35
7.46
4.24
76.2%
Diluted earnings per share from continuing
operations (in €)
35
7.46
4.24
76.2%
Basic earnings per share from continuing and
discontinued operations (in €)
35
7.51
4.28
75.4%
Diluted earnings per share from continuing
and discontinued operations (in €)
35
7.51
4.28
75.4%
The accompanying Notes are an integral part of these consolidated financial statements.
adidas AG Consolidated Income Statement (IFRS) € in millions
Note
Year ending
Dec. 31, 2025
Year ending
Dec. 31, 2024
Change
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311
Consolidated Statement of Comprehensive Income
Net income
1,385
832
Items of other comprehensive income that will not be
reclassified subsequently to profit or loss
Remeasurements of defined benefit plans (IAS 19), net of tax1
23
22
(2)
Net (loss)/gain on other equity investments (IFRS 9), net of tax
28
(60)
1
Subtotal of items of other comprehensive income that will not
be reclassified subsequently to profit or loss
(38)
(2)
Items of other comprehensive income that will be reclassified to
profit or loss when specific conditions are met
Net (loss)/gain on cash flow hedges and net foreign investment
hedges, net of tax
28
(320)
156
Net (loss)/gain on cost of hedging reserve – options, net of tax
28
(1)
1
Net gain on cost of hedging reserve – forward contracts, net of tax
28
12
11
Currency translation differences
(391)
117
Subtotal of items of other comprehensive income that will be
reclassified to profit or loss when specific conditions are met
(700)
285
Other comprehensive income
(738)
283
Total comprehensive income
647
1,115
Attributable to shareholders of adidas AG
648
1,023
Attributable to non-controlling interests
(1)
92
1 Includes actuarial gains or losses relating to defined benefit obligations, return on plan assets (excluding interest income), and the asset ceiling effect.
The accompanying Notes are an integral part of these consolidated financial statements.
adidas AG Consolidated Statement of Comprehensive Income (IFRS) € in millions
Note
Year ending
Dec. 31, 2025
Year ending
Dec. 31, 2024
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Consolidated Statement of Changes in Equity
Balance at December 31, 2023
179
1,355
(750)
(217)
(2)
(2)
(126)
4,145
4,580
345
4,925
Other comprehensive income
—
—
93
156
1
11
(2)
—
258
24
283
Net income
—
—
—
—
—
—
—
764
764
68
832
Total comprehensive income
—
—
93
156
1
11
(2)
764
1,023
92
1,115
Repurchase of adidas AG shares
due to equity-settled share-
based payment
25
(0)
—
—
—
—
—
—
(28)
(28)
—
(28)
Reissuance of treasury shares
due to equity-settled share-
based payment
25
0
—
—
—
—
—
—
28
28
—
28
Dividend payment
—
—
—
—
—
—
—
(125)
(125)
(40)
(165)
Equity-settled share-based
payment
26
—
12
—
—
—
—
—
(8)
5
—
5
Acquisition of shares from non-
controlling interests
shareholders in accordance
with IAS 32
—
—
(0)
—
—
—
(6)
—
(6)
(6)
(12)
Balance at December 31,
2024/January 1, 2025
179
1,367
(657)
(61)
(1)
8
(134)
4,775
5,476
392
5,867
Other comprehensive income
—
—
(346)
(320)
(1)
12
(38)
—
(692)
(45)
(738)
Net income
—
—
—
—
—
—
—
1,340
1,340
45
1,385
Total comprehensive income
—
—
(346)
(320)
(1)
12
(38)
1,340
648
(1)
647
Repurchase of adidas AG shares
due to equity-settled share-
based payment
25
(0)
—
—
—
—
—
—
(43)
(43)
—
(43)
Reissuance of treasury shares
due to equity-settled share-
based payment
25
0
—
—
—
—
—
—
43
43
—
43
Dividend payment
—
—
—
—
—
—
—
(357)
(357)
(42)
(399)
Equity-settled share-based
payment
26
—
9
—
—
—
—
—
0
9
—
9
Balance at December 31, 2025
179
1,376
(1,003)
(381)
(2)
21
(172)
5,758
5,776
349
6,125
The accompanying Notes are an integral part of these consolidated financial statements.
adidas AG Consolidated Statement of Changes in Equity (IFRS) € in millions
Note
Share
capital
Capital
reserve
Cumulative
currency
translation
differences
Hedging
reserve
Cost of
hedging
reserve –
options
Cost of
hedging
reserve –
forward
contracts
Other
reserves
Retained
earnings
Share-
holders’
equity
Non-
controlling
interests
Total
equity
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313
Consolidated Statement of Cash Flows
Operating activities:
Income before taxes
1,820
1,121
Adjustments for:
Depreciation, amortization, and impairment losses
09, 10, 11,
12, 30
1,154
1,208
Reversals of impairment losses
09, 10, 30
(19)
(28)
Interest income
32
(58)
(57)
Interest expense
32
227
221
Unrealized foreign exchange losses/(gains), net
24
(19)
Losses on sale of property, plant, and equipment and intangible assets, net
20
17
Other non-cash effects from operating activities
29, 30
22
(10)
Cash flows from operating activities before working capital changes
3,190
2,453
Change in receivables and other assets
(562)
(839)
Change in inventories
(1,104)
(500)
Change in accounts payable and other liabilities
(377)
2,024
Cash flows from operating activities before taxes
1,147
3,138
Income taxes paid
(399)
(236)
IAS 29 - Hyperinflation effects in operating cash flow
3
9
Cash flows from operating activities
751
2,910
Investing activities:
Purchase of other intangible assets
12
(114)
(121)
Purchase of property, plant, and equipment
09
(363)
(419)
Proceeds from sale of property, plant, and equipment
4
49
Proceeds from sale of a disposal group from prior years
03
100
100
Change in short-term financial assets
—
28
Change in investments and other long-term assets
(88)
(50)
Interest received
58
57
Cash flows from investing activities
(404)
(356)
Financing activities:
Repayment of eurobonds
16
(500)
(500)
Proceeds from issuance of bonds
16
498
—
Interest paid
(220)
(217)
Repayments of lease liabilities
19
(643)
(656)
Dividend paid to shareholders of adidas AG
25
(357)
(125)
Dividend paid to non-controlling interest shareholders
27
(42)
(40)
Repurchase of treasury shares due to share-based payments
26
(43)
(35)
Proceeds from reissuance of treasury shares due to share-based payments
26
39
24
Change in short-term borrowings
16
166
3
Acquisition of non-controlling interests
27
—
(12)
Cash flow from financing activities
(1,103)
(1,559)
Sum of cash flows
(755)
995
Effect of exchange rates on cash
(82)
29
Change in cash and cash equivalents
(838)
1,024
Cash and cash equivalents at beginning of year
04
2,455
1,431
Cash and cash equivalents at end of period
04
1,617
2,455
The accompanying Notes are an integral part of these consolidated financial statements.
adidas AG Consolidated Statement of Cash Flows (IFRS) € in millions
Note
Year ending
Dec. 31, 2025
Year ending
Dec. 31, 2024
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Notes
adidas AG is a listed German stock corporation and parent of the adidas Group located at Adi-Dassler-Str. 1,
91074 Herzogenaurach, Germany, and is entered into the commercial register at the Local Court of Fürth
(HRB 3868). adidas AG and its subsidiaries (collectively ‘adidas,’ ‘the Group,’ or ‘the company’) design,
develop, produce, and market a broad range of athletic and sports lifestyle products.
01
General
The consolidated financial statements of adidas AG as at December 31, 2025, comprise adidas AG and its
subsidiaries and are prepared in compliance with IFRS Accounting Standards, as endorsed by the European
Union (EU) as at December 31, 2025, and the additional requirements pursuant to § 315e section
1 German Commercial Code (Handelsgesetzbuch – HGB).
The following amendments to existing standards and interpretations are effective for financial years
beginning on January 1, 2025, and have been applied for the first time to these consolidated financial
statements:
─Amendments to IAS 21 ‘The Effects of Changes in Foreign Exchange Rates’ – ‘Lack of
Exchangeability’ (effective date: January 1, 2025): In August 2023, the International Accounting
Standards Board (IASB) issued ‘Lack of Exchangeability’ that amended IAS 21. IAS 21 sets out the
requirements for determining the exchange rate to be used for recording a foreign currency transaction
into the functional currency and translating a foreign operation into a different currency. The amendments
to IAS 21 clarify how an entity should assess whether a currency is exchangeable and how to determine
the exchange rate when it is not. The amendments had no impact on the consolidated financial
statements.
New standards and interpretations as well as amendments to existing standards and interpretations are
usually not applied by adidas before the EU effective date.
The following new standards and interpretations and amendments to existing standards and interpretations
issued by the IASB, endorsed by the EU, and which are effective for financial years beginning after
January 1, 2025, have not been applied in preparing these consolidated financial statements:
─Amendments to IFRS 9 ‘Financial Instruments’ and IFRS 7 ‘Financial Instruments: Disclosures’ –
‘Classification and Measurement of Financial Instruments’ (effective date: January 1, 2026): On
May 30, 2024, the IASB issued targeted amendments to IFRS 9 and IFRS 7 to respond to recent
questions arising in practice, and to include new requirements not only for financial institutions but also
for corporate entities to:
▪clarify the date of recognition and derecognition of financial assets and liabilities, with a new exception
for financial liabilities settled through an electronic cash transfer system;
▪clarify and add further guidance for assessing whether a financial asset with environmental, social and
corporate governance and similar features meets the solely payments of principal and interest (SPPI)
criterion;
▪clarify what constitutes ‘non-recourse features’ and what are the characteristics of contractually linked
instruments; and
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▪add new disclosures for certain instruments with contractual terms that can change cash flows (such
as instruments with features linked to the achievement of environment, social, and governance
targets) and new disclosures for equity instruments designated at fair value through other
comprehensive income (FVOCI).
The amendments are effective for annual periods starting on or after January 1, 2026 with early adoption
permitted for classification of financial assets and related disclosures only. The amendments are not
expected to have a material effect on the consolidated financial statements of adidas.
─Amendments to IFRS 9 ‘Financial Instruments’ and IFRS 7 ‘Financial Instruments: Disclosures’ –
‘Contracts Referencing Nature-dependent Electricity’ (effective date: January 1, 2026): In
December 2024, the IASB issued amendments to IFRS 9 and IFRS 7 – Contracts Referencing Nature-
dependent Electricity, which apply only to contracts that reference nature-dependent electricity. The
amendments:
▪clarify the application of the ‘own-use’ requirements for in-scope contracts;
▪permit hedge accounting if these contracts are used as hedging instruments; and
▪add new disclosure requirements to enable investors to understand the effect of these contracts on a
company’s financial performance and cash flows.
The amendments will take effect for annual reporting periods starting on or after 1 January, 2026. The
amendments concerning the own-use exception are to be applied retrospectively, while the hedge
accounting amendments should be applied prospectively to new hedging relationships designated from
the initial application date. Additionally, the IFRS 7 disclosure amendments must be implemented
alongside the IFRS 9 amendments. If an entity does not restate comparative information, it cannot
present comparative disclosures. The amendments are not expected to have an impact on the
consolidated financial statements of adidas.
─Annual Improvements to IFRS Accounting Standards – Volume 11 (effective date: January 1, 2026): In
July 2024, the IASB issued nine narrow scope amendments as part of its periodic maintenance of IFRS
Accounting Standards. The amendments include clarifications, simplifications, corrections or changes to
improve consistency in the following: IFRS 1 ‘First-time Adoption of International Financial Reporting
Standards,’ IFRS 7 ‘Financial instruments: Disclosure’ and its accompanying Guidance on implementing
IFRS 7, IFRS 9 ‘Financial Instruments,’ IFRS 10 ‘Consolidated Financial Statements,’ and IAS 7
‘Statements of Cash Flows.’ The amendments will be effective for reporting periods beginning on or after
1 January, 2026, with early application permitted. The amendments are not expected to have a material
impact on the consolidated financial statements of adidas.
─IFRS 18 ‘Presentation and Disclosure in Financial Statements’ (effective date: January 1, 2027):
IFRS 18 replaces IAS 1, which sets out presentation and base disclosure requirements for financial
statements. The changes, which mostly affect the income statement, include the requirement to classify
income and expenses into three new categories – operating, investing, and financing – and present
subtotals for operating profit or loss and profit or loss before financing and income taxes.
The standard requires disclosure of management-defined performance measures (MPMs) and includes
new requirements for aggregation and disaggregation of financial information based on the identified
roles of the primary financial statements and the notes.
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In addition, narrow-scope amendments have been made to IAS 7 ‘Statement of Cash Flows’, which
include changing the starting point under the indirect method, from ‘profit or loss’ to ‘operating profit or
loss,’ and removing the optionality around classification of cash flows from dividends and interest. In
addition, there are consequential amendments to several other standards.
The group will apply the new standard from its mandatory effective date of January 1, 2027.
Retrospective application is required, and so the comparative information for the financial year ending
December 31, 2026, will be restated in accordance with IFRS 18.
The initial expected impacts on consolidated financial statements of adidas are as follows:
▪Introduction of new subtotals within the income statement.
▪Foreign exchange differences will be classified in the category where the related income and expense
from the item that gave rise to the foreign exchange difference are reported.
▪New disclosures will be added: (a) management-defined performance measures; (b) specified expense
by nature if expenses are presented by function in the operating category of the statement of profit or
loss; and (c) a reconciliation for each line item in the statement of profit or loss between the restated
amounts presented applying IFRS 18 and the amounts previously presented applying IAS 1.
The following new standards and interpretations as well as amendments to existing standards and
interpretations were issued by the IASB. These are not yet endorsed by the EU and hence have not been
applied in preparing these consolidated financial statements:
─IFRS 19 ‘Subsidiaries without Public Accountability: Disclosures’ (effective date: January 1, 2027):
Issued in May 2024, IFRS 19 allows for certain eligible subsidiaries of parent entities that report under
IFRS Accounting Standards to apply reduced disclosure requirements. IFRS 19 will become effective for
reporting periods beginning on or after January 1, 2027, with early application permitted. The
amendments will have no impact on the consolidated financial statements of adidas.
─Amendments to IAS 21 ‘The Effects of Changes in Foreign Exchange Rates’ – ‘Translation to a
Hyperinflationary Presentation Currency’ (effective date: January 1, 2027): Issued on 13 November,
2025, amendments clarify the accounting applied by a parent, whose functional currency is the currency
of a hyperinflationary economy, when it consolidates a subsidiary, whose functional currency is the
currency of a non-hyperinflationary economy. The amendments are effective for annual reporting periods
beginning on or after 1 January, 2027. The amendments will have no impact on the consolidated
financial statements of adidas.
The consolidated financial statements have in principle been prepared on the historical cost basis except
for certain items in the statement of financial position, such as certain originated financial instruments,
derivative financial instruments, and plan assets, which are measured at fair value.
The consolidated financial statements are presented in euros (€), and unless otherwise stated, all values
are presented in millions of euros (€ in millions). Due to rounding principles, numbers presented may not
exactly sum up to totals provided. This can also lead to individual amounts rounded to zero.
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02
Summary of material accounting policies
The consolidated financial statements are prepared in accordance with the consolidation, accounting, and
valuation principles described below.
Principles of consolidation
The consolidated financial statements include the financial statements of adidas AG and all its direct and
indirect subsidiaries, which are prepared in accordance with uniform accounting principles. An entity is
considered a subsidiary if it is controlled by adidas AG. Control exists when adidas is exposed to, or has
rights to, variable returns from its involvement with the investee and has the ability to affect those returns
through its power over the investee.
adidas has the power to approve key financial and operational targets as well as the organizational
structure of Agron, Inc., Los Angeles, California (USA). adidas has the right to, and is exposed to, the
returns from its contractual business relations with Agron, Inc., which are dependent on the level of its net
sales and overall profitability. adidas has the ability to directly influence the amount of these variable
returns and consequently has control over Agron, Inc. As adidas holds no equity interests of Agron, Inc.,
both net assets as well as income and expenses are attributable entirely to the non-controlling interest.
The number of consolidated subsidiaries developed as follows in 2025 and 2024, respectively:
January 1
108
109
First-time consolidated subsidiaries
4
1
Thereof: newly founded
4
1
Deconsolidated/divested subsidiaries
—
(1)
Intercompany mergers
(1)
(1)
December 31
111
108
Number of consolidated subsidiaries
2025
2024
The subsidiaries are held either directly by adidas AG or indirectly via the two holding companies adidas
Beteiligungsgesellschaft mbH in Germany or adidas International B.V. in the Netherlands.
A schedule of the shareholdings of adidas AG is shown in the Shareholdings list attached to the Notes to
the consolidated financial statements. This schedule comprises information about the company name and
domicile of all consolidated subsidiaries, as well as the respective share held in the capital of these
subsidiaries. Furthermore, a schedule of the shareholdings of adidas AG is published on the German
Company Register.
►SEE SHAREHOLDINGS
The financial effects of intercompany transactions as well as any unrealized gains and losses arising from
intercompany business relations are eliminated in preparing the consolidated financial statements.
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Principles of measurement
The following table includes an overview of selected subsequent measurement principles used in the
preparation of the consolidated financial statements.
Assets
Cash and cash equivalents
Amortized cost
Cash and cash equivalents (investments in certain money
market funds)
Fair value through profit or loss
Accounts receivable
Amortized cost
Inventories
Lower of cost and net realizable value
Property, plant, and equipment
Amortized cost
Right-of-use assets
Amortized cost
Goodwill
Impairment-only approach
Intangible assets (except goodwill):
With definite useful life
Amortized cost
With indefinite useful life
Impairment-only approach
Financial assets
See separate table
Liabilities
Borrowings
Amortized cost
Accounts payable
Amortized cost
Liabilities/provisions for cash-settled share-based
payment arrangements
Fair value through profit or loss
Derivatives not used in hedge accounting
Fair value through profit or loss
Derivatives used in hedge accounting
Fair value through other comprehensive income
Other financial liabilities
Amortized cost
Provisions:
Pensions
Projected unit credit method
Other provisions
Expected settlement amount
Accrued liabilities
Amortized cost
Lease liabilities
Amortized cost
Overview of selected subsequent measurement principles
Subsequent measurement principle
Financial assets are classified and measured according to IFRS 9. All purchases and sales of financial
assets, with the exception of trade receivables, are recognized on the trade date and initially measured at
fair value. At initial recognition, trade receivables that do not have a significant financing component are
measured at their transaction price. Subsequently, a financial asset is measured at amortized cost, fair
value through other comprehensive income (debt instrument), fair value through other comprehensive
income (equity instrument), or fair value through profit or loss.
A financial asset is measured at amortized cost if it meets both of the following conditions and is not
designated at fair value through profit or loss: the financial asset is held within a business model whose
objective is to hold assets to collect contractual cash flows (business model ‘Hold to collect’); and the
financial asset’s contractual terms give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
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A financial asset is measured at fair value through other comprehensive income if it meets both of the
following conditions and is not designated at fair value through profit or loss: the financial asset is held
within a business model whose objective is achieved by both collecting contractual cash flows and selling
financial assets (business model ‘Hold to collect and sell’); and its contractual terms give rise on specified
dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.
In principle, all investments in equity instruments are measured at fair value through profit or loss. At initial
recognition, an entity may make an irrevocable election to present in other comprehensive income
subsequent changes in the fair value of an investment in an equity instrument that is neither held for
trading nor a contingent consideration acquired by a purchaser in a business combination. This election is
made on an investment-by-investment basis.
All financial assets, which are not classified as measured at amortized cost or at fair value through other
comprehensive income as described above, are measured at fair value through profit or loss.
Financial assets are only reclassified when the business model for managing financial assets is changed,
in which case all affected financial assets are reclassified.
The subsequent measurement of financial assets is as follows:
Fair value through
profit or loss
These assets are subsequently measured at fair value.
Net gains and losses, including any interest or dividend
income, are recognized in profit or loss.
Fair value through
profit or loss
Amortized cost
These assets are subsequently measured at amortized
cost using the effective interest method. The amortized
cost is reduced by impairment losses. Interest income,
foreign exchange gains and losses and impairment losses
are recognized in profit or loss. Any gain or loss on
derecognition is recognized in profit or loss.
Amortized cost
Fair value through
other comprehensive
income
(debt instrument)
These assets are subsequently measured at fair value.
Interest income calculated using the effective interest
method, foreign exchange gains and losses and
impairment losses are recognized in profit or loss.
Other net gains and losses are recognized in other
comprehensive income. On derecognition, accumulated
gains and losses are reclassified to profit or loss.
Fair value through
other comprehensive
income
Fair value through
other comprehensive
income
(equity instrument)
These assets are subsequently measured at fair value.
Dividends are recognized as income in profit or loss
unless the dividend clearly represents a recovery of
part of the cost of the investment. Other gains and
losses are recognized in other comprehensive income
and are never reclassified to profit or loss.
Fair value through
other comprehensive
income
Overview of financial asset subsequent measurement principles according to IFRS 9
IFRS 9 category
Subsequent measurement principle
Subsequent
measurement
Financial liabilities are recognized when adidas becomes a party to the contractual provisions that gives
rise to the financial liability. All financial liabilities are initially recognized at fair value.
For subsequent measurement, financial liabilities are classified either as financial liabilities measured at
fair value through profit or loss, or as financial liabilities measured at amortized cost. Financial liabilities at
fair value through profit or loss include, in particular, derivative financial instruments not designated as
hedging instruments in hedging relationships in accordance with IFRS 9.
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Transaction costs that are directly attributable to the issue of financial liabilities that are not measured at
fair value through profit or loss reduce the fair value of the financial liability on initial recognition.
Currency translation
The consolidated financial statements are presented in euros (€), which is also the parent company’s
functional currency. For each entity, the Group determines the functional currency.
Transactions in foreign currencies are initially recorded in the respective functional currency by applying the
spot exchange rate valid at the transaction date to the foreign currency amount.
In the individual financial statements of subsidiaries, monetary items denominated in non-functional
currencies of the subsidiaries are generally translated into the functional currency at closing exchange rates
at the balance sheet date. The resulting currency gains and losses are recognized directly in profit or loss.
This excludes monetary items that are designated as part of the hedge of the Group’s net investment in a
foreign operation. These are recognized in other comprehensive income (OCI) until the net investment is
disposed of, at which time the cumulative amount is reclassified to profit or loss. Taxes resulting from
these exchange differences are also recognized directly in other comprehensive income in accordance with
IAS 12.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using
the exchange rates at the dates of the initial transactions. Non-monetary items measured at fair value in a
foreign currency are translated using the exchange rates at the date when the fair value is determined. The
gain or loss arising on translation of non-monetary items measured at fair value is treated in line with the
recognition of the gain or loss on the change in fair value of the item.
Assets and liabilities of the company’s non-euro functional currency subsidiaries that are included in the
consolidated financial statements are translated using closing exchange rates at the balance sheet date
into the presentation currency, the euro. For practical reasons, revenues and expenses are translated at
average rates for the period, which approximate the exchange rates on the transaction dates. The resulting
exchange differences arising on consolidation are recognized in OCI.
A summary of exchange rates to the euro for major currencies in which the Group operates is as follows:
USD
1.1299
1.0819
1.1750
1.0389
GBP
0.8565
0.8477
0.8726
0.8292
JPY
169.0505
163.8378
184.0900
163.0600
CNY
8.1223
7.7983
8.1938
7.5966
MXN
21.6663
19.8283
21.1514
21.5948
Exchange rates
€ 1 equals
Average rates for the year ending
Dec. 31,
Spot rates at Dec. 31,
2025
2024
2025
2024
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Hyperinflation
To reflect changes in purchasing power at the balance sheet date, the carrying amounts of non-monetary
assets and liabilities, shareholders’ equity, and comprehensive income of subsidiaries in hyperinflationary
economies are restated in terms of a measuring unit current at the balance sheet date. These are indexed
using a general price index in accordance with IAS 29 ‘Financial Reporting in Hyperinflationary Economies.’
In contrast, no restatement is required for monetary assets and liabilities carried at amounts current at the
end of the balance sheet date because they represent money held, to be received, or to be paid.
►SEE NOTE 33
Gains and losses on the net monetary position are included in the financial result.
Non-monetary assets that have been restated following the guidance in IAS 29 are still subject to
impairment assessment in accordance with the guidance in the relevant IFRS Accounting Standards.
Derivative financial instruments
adidas uses derivative financial instruments, such as currency options or option combinations, forward
exchange contracts, and currency swaps, to hedge its exposure to foreign-exchange risks. In accordance
with its Treasury Policy, the company does not enter into transactions with derivative financial instruments
for trading purposes.
Derivative financial instruments are initially recognized in the statement of financial position at fair value
and are subsequently also measured at their fair value. The method of recognizing the resulting gains or
losses is dependent on the nature of the hedge. On the date a derivative contract is entered into, adidas
designates derivatives as either a hedge of a forecast transaction (cash flow hedge) or a hedge of a net
investment in a foreign operation. In applying cash flow hedge accounting, adidas designates the spot
element of forward exchange contracts and the intrinsic value of currency options or of option combinations
to hedge its currency risk and applies a hedge ratio of 1:1 (spot-to-spot designation). The forward element
of forward exchange contracts and the time value component of currency options or of option combinations
are excluded from the designation of the hedging instrument.
Changes in the fair value of derivatives that are designated and qualify as cash flow hedges or net
investments that are effective as defined in IFRS 9 are recognized in equity.
adidas applies the ‘cost of hedging’ approach for dedicated cash flow hedges. Changes in the fair value of
the time value component of currency options or of option combinations, as well as the forward element in
forward exchange contracts, are separately accounted for as a cost of hedging and are recognized
separately in equity as a cost of hedging reserve. When the effectiveness is not 100%, the ineffective
portion of the change in the fair value is recognized in the consolidated income statement. Accumulated
gains and losses in equity are transferred to the consolidated income statement in the same periods,
during which the hedged forecast transaction affects the consolidated income statement.
Hedges of net investments in foreign entities are accounted for in a similar way to cash flow hedges. The
effective currency gains and losses in the derivative and all gains and losses arising on the translation of
the borrowing are recognized in equity with the exception of the cross-currency basis spread.
Certain derivative transactions, while providing effective economic hedges under the company’s risk-
management policies, do not qualify for hedge accounting under the specific rules of IFRS 9.
adidas documents the relationship between hedging instruments and hedge objects as well as the risk-
management objectives and strategies for undertaking various hedge transactions at transaction inception.
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This process includes linking all derivatives designated as hedge to specific firm commitments and forecast
transactions. The economic relationship between the hedging instrument and hedged item is qualitatively
and quantitatively ascertainable, and adidas judges the effectiveness of the hedging relationship by using
generally accepted methods such as the hypothetical derivative method or the ‘Dollar Offset Method.’ In
the case of foreign exchange forward contracts and plain-vanilla foreign currency options, ineffectiveness
within hedge relationships typically results from changes in counterparty credit risk or from timing
discrepancies between the hedging instrument and the underlying hedged item. For structured derivatives,
however, systematic ineffectiveness relative to the hedged risk is expected due to nonlinear risk drivers
embedded in the instrument – such as volatility or barrier dependencies – that are not present in the
underlying exposure.
The fair values of currency options or of option combinations and forward exchange contracts are
determined on the basis of market conditions on the reporting date. The fair value of a currency option or of
option combinations is determined using generally accepted models. The fair value of an option is
influenced not only by the remaining term of the option but also by additional factors, such as the actual
foreign exchange rate and the volatility of the underlying foreign currency base. The company determines
fair values taking the counterparty risk into consideration.
Cash and cash equivalents
Cash and cash equivalents represent cash at banks, cash on hand, and short-term deposits with maturities
of three months or less from the date of acquisition, such as commercial papers and investments in money
market funds.
Cash equivalents are short-term, highly liquid investments that are readily convertible to known amounts of
cash and that are subject to an insignificant risk of changes in value.
Cash equivalents can partly include investments in money market funds. Classification and measurement
under IFRS 9 are performed based on the company’s business model for managing these financial assets
and the contractual cash flow characteristics. Investments in money market funds contain cash flows other
than those of principal and interest on principal. As a result, those investments are measured at fair value
through profit or loss.
Accounts receivable
A receivable is recognized if an amount of consideration that is unconditional is due from the customer
(i.e., if only the passage of time is required before payment of that consideration is due). Accounts
receivable that do not contain a significant financing component are recognized at the transaction price,
which represents the amount of consideration to which the company expects to be entitled in exchange for
transferring promised goods or services to a customer. Subsequently, these are measured at amortized
cost.
Other financial assets
Other financial assets are classified and measured under IFRS 9, based on the company’s business model
for managing these assets and the contractual cash flow characteristics. Those other financial assets that
give rise to cash flows consisting only of payments of principal and interest and that are assigned to the
business model ‘Hold to collect’ are measured at amortized cost. adidas mainly has security deposits and
receivables from credit card companies that fall under this category.
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Other financial assets that do not give rise to cash flows consisting solely of payments of principal and
interest and that are assigned to the business model ‘Hold’ are measured at fair value through profit or
loss. This category includes only securities to hedge long-term variable compensation components and is
also applied to the same extent to securities to hedge long-term variable compensation components
included in long-term financial assets.
Securities to hedge long-term variable compensation components are so-called ‘total return swaps.’ These
are recognized in the balance sheet upon initial recognition and subsequently at fair value. At the time a
derivative transaction is entered into, adidas classifies total return swaps as a hedging instrument of the
underlying long-term variable compensation components. In this case, adidas designates the entire fair
value as a hedge. Changes in the fair value that are designated and qualify as hedges and are determined
to be effective in accordance with IFRS 9 are recognized in equity (hedging reserve).
At the end of the period, a reclassification is made from equity to the income statement in proportion to the
increase in the provision for the long-term variable compensation components.
Upon conclusion of the transaction, adidas documents the relationship between the hedging instruments
and the hedge objects as well as the risk management objectives and strategies of the hedging
transactions. In this process, the total return swaps used as hedging instruments are linked to the
respective long-term variable compensation components. The economic relationship between the hedging
instrument and the hedged item can be determined qualitatively and quantitatively, and adidas assesses
the effectiveness of the hedging relationships using recognized methods such as the hypothetical derivative
method or the ‘Dollar Offset Method.’ Ineffectiveness is mainly expected to arise from changes in credit
risk or from shifts in the timing of the hedged item.
The fair values are determined on the basis of market conditions at the balance sheet date. When
determining the fair values, the company takes the counterparty risk into account.
The elimination of part of the originally planned long-term variable compensation components could lead to
certain overhedge transactions. In this case, hedge accounting would be discontinued immediately in
accordance with IFRS 9, and the fair value through profit or loss would be transferred from the hedging
reserve to the income statement at the time the over-hedged status is identified. There was no overhedging
in 2025.
Other financial assets, which are neither within the business model ‘Hold to collect’ nor within ‘Hold to
collect and sell,’ are measured at fair value through profit or loss. This category mainly includes secured
promissory notes and earn-out components.
Long-term financial assets
Long-term financial assets are distinguished between debt and equity instruments and classified according
to IFRS 9 as follows:
Debt instruments are measured depending on the company’s business model for managing financial
assets and the contractual cash flows. Only financial assets that are held within the business model ‘Hold
to collect’ with the objective to collect the contractual cash flows, which represent solely payments of
principal and interest on the principal amount outstanding on a specific date, are measured at amortized
cost. adidas classifies certain loans within this category. All other financial assets which do not fulfill one of
these criteria are measured at fair value through profit or loss. adidas has no long-term financial assets in
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the category fair value through comprehensive income (debt instrument) and shows loans which do not
fulfill the contractual cash flow characteristics in the category fair value through profit or loss.
►SEE NOTE 13
Generally, all investments in equity instruments are measured at fair value through profit or loss, unless
these investments represent investments that the company intends to hold for long-term strategic
purposes, which are then designated as equity securities at fair value through other comprehensive income
(equity).
The designation of certain equity instruments at fair value through other comprehensive income (equity) is
based on a strategic management decision.
As mentioned in the previous section on other financial assets, securities used to hedge long-term variable
compensation components are included in long-term financial assets.
Inventories
Finished goods and merchandise are valued at the lower of cost or net realizable value, which is the
estimated selling price in the ordinary course of business less the estimated costs of completion and the
estimated costs necessary to make the sale. Costs are determined using a standard valuation method, the
‘average cost method.’ Costs of finished goods include the cost of direct materials and labor and the
components of the manufacturing overheads that can be reasonably attributed to finished goods. The
allocation of overheads is based on the planned average utilization. The net realizable value allowances are
computed consistently throughout the company based on the age and expected future sales of the items
on hand.
►SEE NOTE 07
Discontinued operations
A part of the adidas Group, whose operations and cash flows can be clearly distinguished operationally and
for financial reporting purposes from the other operating businesses, is classified as a discontinued
operation if the component has either been disposed of or is classified as held for sale, and:
─represents a separate major line of business or geographic area of operations,
─is part of a single coordinated plan to dispose of a separate major line of business or geographic area of
operations, or
─is a subsidiary acquired exclusively with a view to resale.
Discontinued operations are excluded from the net income/loss from continuing operations and are
presented as a single amount as gain/loss from discontinued operations, net of tax in the consolidated
income statement. When an operation is classified as a discontinued operation, the comparative
consolidated income statement and consolidated statement of cash flows are restated and presented as if
the operation had been classified as such from the start of the comparative year.
►SEE NOTE 03
Property, plant, and equipment
Property, plant, and equipment are measured at amortized cost. This comprises all costs directly
attributable to bringing the asset to the condition necessary for it to be capable of operating in the manner
intended by management less any accumulated depreciation and accumulated impairment losses.
Depreciation is recognized for those assets, with the exception of land and construction in progress, over
the estimated useful life utilizing the ‘straight-line method’ and taking into account any potential residual
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value. Parts of an item of property, plant, and equipment with a cost that is significant in relation to the
total cost of the item are depreciated separately.
►SEE NOTE 09
Estimated useful lives are as follows:
Land
indefinite
Buildings and leasehold improvements
20 – 50
Furniture and fixtures
3 – 5
Technical equipment and machinery as well as other equipment
2 – 20
Estimated useful lives of property, plant, and equipment
Years
Expenditure for repairs and maintenance is expensed as incurred. Renewals and improvements are
capitalized and depreciated separately, if the recognition criteria are met.
Impairment losses on non-financial assets
If facts and circumstances indicate that non-current assets (e.g., property, plant, and equipment as well as
intangible assets including goodwill and contract assets) might be impaired, the recoverable amount is
determined. This is measured at the higher of fair value less costs of disposal (net disposal price) and
value in use. Recoverable amount is determined on an individual asset level, unless the asset does not
generate cash inflows that are largely independent of those from other assets or groups of assets. If this is
the case, recoverable amount is determined for the cash-generating unit to which the asset belongs. The
fair value is measured at Level 3 according to IFRS 13 ‘Fair Value Measurement.’
An impairment loss is recognized in other operating expenses or reported in goodwill impairment losses if
the carrying amount exceeds the recoverable amount.
The impairment test for goodwill is performed based on groups of cash-generating units, which represent
the lowest level within the company at which goodwill is monitored for internal management purposes. If
there is an impairment loss for a group of cash-generating units, then, first, the carrying amount of any
goodwill allocated to the group of cash-generating units is reduced. Subsequently, provided that the
recoverable amount is lower than the carrying amount, the other non-current assets of the group of cash-
generating units are reduced pro rata on the basis of the carrying amount of each asset in the group of
cash-generating units. In allocating an impairment loss, the carrying amount of an individual asset is not
reduced below its fair value. The amount of the impairment loss that would otherwise have been allocated
to the asset is allocated pro rata to the other assets of the cash-generating unit and groups of cash-
generating units.
Irrespective of whether there is an impairment indication, intangible assets with an indefinite useful life,
intangible assets not yet available for use and goodwill acquired in business combinations are tested
annually on December 31 for impairment. In the case that indicators for impairment are present at any
point in time other than on December 31, these assets are also tested for impairment at this point in time.
An impairment loss recognized in goodwill is not reversible. With respect to all other impaired assets, an
impairment loss recognized in prior periods is only reversed such as it affects the consolidated income
statement if there has been a change in the estimates used to determine the recoverable amount. An
impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the
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carrying amount that would have been determined (net of depreciation or amortization) if no impairment
loss had been recognized.
Impairment losses on financial assets
Impairment losses for financial assets measured at amortized cost or at fair value through other
comprehensive income (debt instrument) are recognized in accordance with IFRS 9 ‘Financial Instruments.’
The standard requires that not only historical data but also future expectations and projections are taken
into consideration when accounting for impairment losses (‘expected credit loss’ model).
adidas consistently applies the simplified approach and recognizes lifetime expected credit losses for all
accounts receivable. In order to calculate a collective loss allowance, all accounts receivable sharing
similar credit risk characteristics are allocated into several portfolios based on geographical regions and
macroeconomic indicators. Historical payment and aging patterns for accounts receivable are analyzed
individually for each of the portfolios to determine the probability of default, which is further adjusted by
forward-looking factors derived primarily from the Credit Default Swap (CDS) spreads of the countries where
adidas runs its operations. The adjusted probability of default is then applied in combination with a loss
given default and exposure at default as a percentage rate to calculate the expected credit loss for each
portfolio and aging bucket. The percentage rates are reviewed on a regular basis to ensure that they reflect
the latest data on credit risk. In case objective evidence of credit impairment is observed for accounts
receivable from a specific customer, a detailed analysis of the credit risk is performed, and an appropriate
individual loss allowance is recognized for this customer. Accounts receivables are considered to be in
default when it is expected that the debtor will not fulfill its credit obligations toward adidas. When there is
no reasonable expectation of recovering an account receivable, such as in cases of insolvency, the
receivable is written off entirely.
Cash and cash equivalents measured at amortized cost are subject to a general impairment approach
under IFRS 9. adidas applies the low credit risk exemption for the majority of such instruments due to the
low credit risk for these investments, which is based on the investment grade of their counterparties
(defined by the company as equivalent of BBB+ or higher). A significant increase of credit risk is assumed
for cash and cash equivalents when the instruments are more than 30 days past due. adidas monitors the
credit risk associated with cash and cash equivalents taking into consideration the economic environment,
external credit ratings, and/or CDS spreads of counterparty financial institutions, and using established
exposure limits. Expected credit loss of cash and cash equivalents is calculated based on the probability of
default and recovery rates derived from CDS spreads or external credit ratings of the counterparties. Cash
and cash equivalents are considered to be in default when they are more than 90 days past due.
Other financial assets within the scope of IFRS 9 impairment analysis include mainly security deposits as
well as accounts receivable from credit card companies. The credit risk associated with such financial
assets is determined based on the economic environment, external credit ratings, and/or CDS spreads of
counterparty financial institutions. Other financial assets are considered to be in default when they are
more than 90 days past due.
Objective evidence that credit impairment of financial assets has occurred includes, for instance, significant
financial difficulty of the debtor/issuer, indications of their potential bankruptcy, the deterioration of the
market for their products, and general macroeconomic problems. The gross carrying amount of financial
assets is written off when adidas, based on a case-by-case assessment, assumes that their recovery is no
longer possible.
Impairment losses on accounts receivable are presented in the line item ‘Impairment losses/gains (net) on
accounts receivable and contract assets.’
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Leases
adidas assesses whether a contract is or contains a lease according to IFRS 16 ‘Leases’ at the inception
of the contract. IFRS 16 defines a lease as a contract that conveys the right to control the use of an
identified asset for a period of time in exchange for consideration. A contract conveys the right to control
the use of an identified asset if the lessee has the right to obtain substantially all the economic benefits
from the use of the identified asset (e.g., by having the exclusive right to use the asset throughout that
period) and the right to direct the use of the identified asset throughout the period of use.
In its role as a lessee, adidas leases various types of assets, particularly buildings (retail stores, offices,
warehouses, etc.), land, technical equipment and machinery (warehouse equipment, production machines,
etc.), motor vehicles, and computer hardware, as well as furniture and fixtures. Lease contracts are
typically negotiated for fixed periods of up to 99 years but may include extension or termination options.
Lease terms are negotiated individually and may contain a wide range of different terms and conditions.
adidas makes use of the recognition exemption in IFRS 16 to not recognize right-of-use assets and lease
liabilities for leases of low-value assets (i.e., value of the underlying asset, when new, is € 5,000 or less)
and short-term leases (shorter than twelve months and the agreement does not include a purchase option).
Lease payments for low-value leases are recognized as expenses as they are incurred over the lease term.
Furthermore, adidas exercises the option for lessees to combine lease payments with payments for non-
lease components in the calculation of the lease liability and right-of-use asset for all lease asset classes
except for corporate real estate.
adidas recognizes a right-of-use asset and a corresponding lease liability at the lease commencement date.
At the commencement date, adidas initially measures the lease liability at the present value of the lease
payments that are not paid at that date. This includes fixed payments (including in-substance fixed
payments), less any lease incentives receivable, variable lease payments based on an index or a rate,
amounts expected to be payable by adidas under residual value guarantees, the exercise price of a
purchase option if adidas is reasonably certain to exercise that option, and payments of penalties for
terminating the lease, if the lease term reflects the lessee exercising that option. Other variable lease
payments are excluded from the measurement of the lease liability. The lease payments are discounted
using the interest rate implicit in the lease. If this rate cannot be readily determined, adidas uses its
incremental borrowing rate. Generally, adidas uses the incremental borrowing rate as the discount rate. It is
adjusted to reflect the country-specific risk, the credit risk of adidas, collateral from the change in value of
the leased asset, the contract currency-specific risk, and the lease term.
►SEE NOTE 10 ►SEE NOTE 19
After the commencement date, lease payments are split into redemption payments and interest payments.
The lease liability is subsequently measured by increasing the carrying amount to reflect interest cost on
the lease liability using the effective interest rate and reducing the carrying amount to reflect the lease
payments made. The carrying amount of the lease liability is remeasured provided any reassessments/
lease modifications occur (including changes in the assessment of whether an extension or termination
option is reasonably certain to be exercised).
At the commencement date, the right-of-use asset is initially measured at cost, which is comprised of the
amount of the initial measurement of the lease liability, any lease payments made at or before the
commencement date, less any lease incentives received, any initial direct costs incurred by the lessee and
an estimate of costs to be incurred by adidas in dismantling and removing the underlying asset, restoring
the site on which it is located, or restoring the underlying asset to the condition required by the terms and
conditions of the lease. The right-of-use asset is subsequently measured at cost less any accumulated
depreciation and impairment losses and adjusted for certain remeasurements of the lease liability.
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In principle, the right-of-use asset is depreciated on a straight-line basis over the lease term or the useful
life of the leased asset, whichever is shorter.
adidas applies judgment in determining the lease term for lease contracts including extension or
termination options. The assessment of whether the options are reasonably certain to be exercised has an
impact on the lease term and therefore may significantly affect the measurement of lease liabilities and
right-of-use assets, respectively.
Lease contract renegotiations that result in changes to the original contractual conditions, e.g., changes in
scope, consideration (including discounts and concessions), or lease term are treated as lease
modifications. Depending on the circumstances of the renegotiation, either lease modifications are
accounted for as a new separate contract, or they trigger a remeasurement of the lease liability using the
discounted future lease payments. In the latter case, a corresponding adjustment is made to the right-of-
use asset with, in some instances, a difference recognized in profit or loss.
Lease reassessments are the result of changes in assumptions or judgments, such as changes in lease
term due to amended estimates surrounding existing extension and termination options. It is necessary to
remeasure the lease liability using the discounted or existing future lease payments and make a
corresponding adjustment to the right-of-use asset.
Goodwill
Goodwill is an asset representing the future economic benefits arising from assets acquired in a business
combination that are not individually identified and separately recognized. This results when the purchase
cost exceeds the fair value of acquired identifiable assets, liabilities, and contingent liabilities. Goodwill
arising from the acquisition of a foreign entity and any fair value adjustments to the carrying amounts of
assets received, liabilities, and contingent liabilities are treated as assets, liabilities, and contingent
liabilities of the respective reporting entity, and are translated at exchange rates prevailing at the date of
the initial consolidation.
Goodwill arising on the acquisition of subsidiaries is measured at cost less accumulated impairment losses
(‘impairment-only’ approach).
►SEE NOTE 11
Goodwill is carried in the functional currency of the acquired foreign entity.
Intangible assets (except goodwill)
Intangible assets with definite useful lives are valued at amortized cost. Amortization is calculated on a
straight-line basis over the estimated useful life, taking into account any potential residual value.
►SEE NOTE 12
Expenditure during the development phase of internally generated intangible assets is capitalized as
incurred if it fulfills the recognition criteria under IAS 38 ‘Intangible Assets.’ Development costs for
internally generated intangible assets are capitalized from the date on which the recognition criteria set out
in IAS 38 'Intangible Assets' are first met. The capitalized development costs are amortized on a
systematic basis from the day the intangible assets are available for use.
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Estimated useful lives are as follows:
Software
3 – 10
Patents and licenses
5 – 15
Estimated useful lives of intangible assets
Years
Research and development
Research costs are expensed in full as incurred. Development costs for internally generated intangible
assets are also expensed as incurred if they do not meet the recognition criteria of IAS 38 ‘Intangible
Assets.’
Borrowings and other liabilities
Borrowings (e.g., Eurobonds) and other liabilities are recognized at fair value net of transaction costs
incurred. In subsequent periods, borrowings are stated at amortized cost using the ‘effective interest
method.’ Any difference between proceeds (net of transaction costs) and the redemption value is
recognized in the consolidated income statement over the term of the borrowing.
Provisions and accrued liabilities
Provisions are recognized when there is a present obligation (legal or constructive) to third parties that has
been incurred as a result of a past event, when the amount of the obligation can be estimated reliably and
when it is probable that there will be an outflow of resources. In general, all provisions are uncertain as to
their maturity or amount. The expense relating to a provision is presented in the consolidated income
statement. Non-current provisions are discounted if the effect of the time value of money is material, with
the interest expense being reported as financial expenses.
►SEE NOTE 18
Accrued liabilities are liabilities to pay for goods or services that have been received or supplied but have
not been paid, invoiced, or formally agreed with the supplier, including amounts due to employees. The
uncertainty regarding amount or timing of accrued liabilities is generally much less than for provisions.
►SEE NOTE 20
Pensions and similar obligations
Provisions and expenses for pensions and similar obligations relate to the company’s obligations for
defined benefit and defined contribution plans. The obligations under defined benefit plans are determined
separately for each plan by valuing the employee benefits accrued in return for their service during the
current and prior periods. These benefit accruals are discounted to calculate their present value, and the
fair value of any plan assets is deducted in order to determine the net liability. The discount rate is set on
the basis of yields of high-quality fixed-rate corporate bonds at the balance sheet date provided there is a
deep market for such corporate bonds in a given currency. Otherwise, government bond yields are used as
a reference. Calculations are performed by qualified actuaries using the ‘projected unit credit method’ in
accordance with IAS 19 Employee Benefits. Obligations for contributions to defined contribution plans are
recognized as an expense in the consolidated income statement as incurred.
►SEE NOTE 23
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Contingent liabilities
Contingent liabilities are possible obligations that arise from past events and whose existence will be
confirmed only by the occurrence of one or more uncertain future events not wholly within the control of
adidas. Additionally, contingent liabilities may be present obligations that arise from past events but that
are not recognized because it is not probable that an outflow of resources will be required to settle the
obligation or the amount of the obligation cannot be measured with sufficient reliability. Contingent
liabilities are not recognized in the consolidated statement of financial position but are disclosed and
explained in the Notes.
►SEE NOTE 38
Treasury shares
When adidas AG shares are repurchased and recognized as treasury shares, the amount of the
consideration paid, which includes directly attributable costs, net of any tax effects, is recognized as a
deduction from equity. The nominal value of € 1 per treasury share is debited to share capital. Any premium
or discount to the nominal value is shown as an adjustment to the retained earnings. If treasury shares are
sold or reissued, the nominal value of the shares will be credited to share capital and the amount
exceeding the nominal value will be added to the retained earnings.
Revenue
Revenue derived from the sale of goods is recognized when adidas has satisfied the respective
performance obligation by transferring the promised goods to the customer. The goods are transferred at
the point in time when the customer obtains control of the respective goods. The timing of the transfer of
control depends on the individual terms of the sales agreement (terms of delivery).
The amount of revenue to be recognized is determined based on the consideration adidas expects to be
entitled to in exchange for transferring the promised goods or services to the customer, taking into account
returns, discounts, and rebates.
Payment for retail and e-commerce transactions is due when the goods are transferred to the customer. For
wholesale transactions, payment terms applied correspond to the customary industry practice per country.
Generally, payment is required within 30 to 90 days from the invoice date, in accordance with the
contractual terms.
Under certain conditions and in accordance with contractual agreements, the company’s customers have
the right to return products and to either exchange them for similar or other products or to return the
products against the issuance of a credit note. Amounts for estimated returns related to revenues are
accrued based on past experience of average return rates and average actual return periods by means of a
refund liability. The return assets are measured at the carrying amount of the inventories/products, less
any handling costs and any potential impairment.
Provided that the customers meet certain predefined conditions, adidas grants its customers different
types of globally aligned performance-based rebates. Examples include rebates for customers’ increasing
adidas product sales, for customer loyalty, and for sell-out support, e.g., through retail space/franchise
store management. As soon as it is assumed that the customer fulfills the requirements for being granted
the rebate, this amount is recognized as a sales deduction via an accrued liability for marketing and sales.
In addition, adidas generates revenue from the licensing-out of the right to use the brands to third parties.
The resulting sales-based royalty and commission income is recognized based on the contract terms on an
accrual basis, i.e., revenue is already realized even though the payment takes place at a later point in time.
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Contracts with guaranteed minimum income result in contract assets and contract liabilities depending on
the timing of yearly payments received from customers. The performance obligation related to these
contract assets and liabilities is satisfied over the life of the contract, i.e., the guaranteed minimum income
per year is evenly distributed over twelve months, whereby payments are recorded as arranged in the
contract with the customer.
Advertising and promotional expenditure
Advance payments for media campaigns are included in prepaid expenses within other current and non-
current assets until the services are received, and upon receipt are expensed in full. Significant costs for
media campaigns are expensed on a straight-line basis over the intended duration of the media campaign.
Promotional expenses including one-time, upfront payments for promotion contracts are principally
expensed on a straight-line basis over the term of the agreement.
Interest
Interest is recognized as income or expense as incurred using the ‘effective interest method’ with the
exception of interest that is directly attributable to the acquisition, construction, or production of a
qualifying asset. This interest is capitalized as part of the cost of the qualifying asset.
Interest paid is presented within the net cash used in financing activities.
Government grants
adidas receives government grants in the form of subsidies, subventions, or premiums from local, national,
or international government authorities such as those of the Free State of Bavaria, the Federal Republic of
Germany, and the European Union.
Government grants are recognized if there is adequate certainty that the grants will be received and that the
company satisfies the conditions attached.
Government grants are reported in the consolidated income statement as a deduction from the related
expenses.
Income taxes
Current income taxes are computed in accordance with the applicable taxation rules established in the
countries in which adidas operates.
adidas computes deferred taxes for all temporary differences between the carrying amount and the tax
base of its assets and liabilities as well as for tax loss carry-forwards. As it is not permitted to recognize a
deferred tax liability for the initial recognition of goodwill, adidas does not compute any deferred taxes
thereon.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year
when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been
enacted or substantively enacted at the reporting date.
Deferred tax assets arising from deductible temporary differences and tax loss carry-forwards that exceed
taxable temporary differences are only recognized to the extent that it is probable that the entity concerned
will generate sufficient taxable income to realize the associated benefit. The carrying amount of deferred
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tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that
sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized.
Income tax is recognized in the consolidated income statement unless it relates to items recognized
directly in equity, in which case it is recognized in equity. Deferred tax relating to items recognized outside
profit or loss is recognized outside profit or loss. Deferred tax items are recognized in correlation to the
underlying transaction either in other comprehensive income or directly in equity.
When there is uncertainty over income tax treatments, adidas recognizes and measures current or deferred
tax assets or liabilities applying the requirements of IAS 12 and IFRIC 23. On a case-by-case basis, adidas
determines whether to consider each uncertain tax treatment separately or together with one or more other
uncertain tax treatments, depending on which approach better predicts the resolution of the uncertainty.
Where it is not considered probable that the tax authority will accept an uncertain tax treatment, adidas
reflects the effects of the uncertainty by using one of the following methods, depending on which method
better predicts the resolution of the uncertainty:
─the single most likely amount or
─the expected value based on the sum of the probability-weighted amounts.
In assessing whether and how an uncertain tax treatment affects the determination of taxable profits (tax
losses), tax bases, unused tax losses, unused tax credits, and tax rates, adidas assumes that a taxation
authority will examine amounts it has a right to examine and will have full knowledge of all relevant
information when making those examinations.
►SEE NOTE 34
Share-based payment
The cost of equity-settled share-based payment transactions with employees is determined by the fair value
at the grant date using an appropriate valuation model. That cost is recognized in personnel expenses,
together with a corresponding increase in equity (retained earnings), over the period in which the service
and, where applicable, the performance conditions are fulfilled (the vesting period). The cumulative expense
recognized for equity-settled transactions at each reporting date until the vesting date reflects the extent to
which the vesting period has expired and the company’s best estimate of the number of equity instruments
that will ultimately vest.
►SEE NOTE 26
Service-independent and non-market performance conditions are not taken into account when determining
the fair value of awards at the grant date, but the likelihood of the conditions being met is assessed as
part of the company’s best estimate of the number of equity instruments that will ultimately vest. If the
estimate is changed, even a credit in the consolidated income statement for the period can be possible, as
it reflects the movement in cumulative expenses from the beginning to the end of that period.
No expense is recognized for awards that do not ultimately vest if non-market performance and/or service
conditions have not been met.
Equity-settled share-based payment transactions with parties other than employees are generally measured
at the fair value of the goods or services received, except where the fair value cannot be estimated reliably,
in which case they are measured at the fair value of the equity instruments granted, measured at the date
the entity obtains the goods or the counterparty renders the service.
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For cash-settled share-based payment transactions, the goods or services acquired, and the liability
incurred are measured at the fair value of the liability. Until the liability is settled, the fair value of the
liability is remeasured at the end of each reporting period and at the date of settlement, with all changes in
fair value recognized in profit or loss for the period.
Estimation uncertainties and judgments
The preparation of financial statements in conformity with IFRS Accounting Standards requires the use of
assumptions and estimates that affect reported amounts and related disclosures. Although such estimates
are based on the best of our knowledge of current events and actions, actual results may ultimately differ
from these estimates. In 2025, assumptions and estimates continued to be significantly impacted
especially by the still increased macroeconomic and geopolitical challenges, which may particularly affect
consumer demand as well as the sales and profit development in adidas’ markets.
The key assumptions concerning further future and other key sources of estimation uncertainty at the
balance sheet date, which have a significant risk of causing a material adjustment to the carrying amounts
of assets and liabilities within the next financial year, are outlined in the respective Notes, which include in
particular accounts receivable, inventories, right-of-use-assets, goodwill, other provisions, pensions,
derivatives, and income taxes, as well as other financial commitments and contingencies.
►SEE NOTE 05 ►SEE NOTE 07 ►SEE NOTE 10 ►SEE NOTE 11 ►SEE NOTE 18 ►SEE NOTE 23 ►SEE NOTE 28 ►SEE NOTE 34 ►SEE NOTE 38
Judgments have also been used in determining the lease term for lease contracts.
►SEE NOTE 10 ►SEE NOTE 19
03
Discontinued operations
The position of discontinued operations includes the Reebok business, which was sold on February 28,
2022 with effect from March 1, 2022. The majority of the purchase price was paid at closing, with the
remainder comprising deferred and contingent consideration. The fair value of earn-out components was
determined using the discounted cash flow method, considering Monte Carlo Simulations.
The profit from discontinued operations for 2025 in the amount of € 8 million (2024: € 8 million) is fully
attributable to the shareholders of adidas AG.
In the event the operations of the Reebok business achieve certain performance criteria during the period
from March 1, 2022, to December 31, 2031, which are defined as earn-out components in the sale
agreement, additional cash consideration of up to € 500 million will be due. At the time of the sale, the fair
value of the consideration was determined to be € 247 million. It has been recognized as a financial asset
at fair value through profit and loss.
In 2025, adidas received a second payment of € 100 million. At year-end 2025, the fair value of the up to a
maximum of € 300 million earn-out components was measured at € 162 million.
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Notes to the Consolidated Statement of Financial Position
04
Cash and cash equivalents
Cash and cash equivalents consist of cash held by banks, cash on hand, and short-term deposits.
Short-term deposits are only shown as cash and cash equivalents if they are readily convertible to a known
amount of cash and are subject to an insignificant risk of changes in value.
Based on the impairment tests, no impairment need was identified for cash and cash equivalents
measured at amortized cost.
As of December 31, 2025, cash and cash equivalents includes cash in banks and cash on hand amounting
to € 691 million (2024: € 959 million) and short-term deposits in the form of money market funds
amounting to € 926 million (2024: € 1,496 million). The total of cash and cash equivalents includes
€ 287 million and € 325 million as of December 31, 2025 and 2024, respectively, held by subsidiaries
that were subject to foreign exchange control or other legal restriction and hence were not at any time
available for general use by adidas AG or other subsidiaries.
Further information about cash and cash equivalents is presented in these Notes.
►SEE NOTE 28
05
Accounts receivable
Accounts receivable consist mainly of the currencies euro, US dollar, and Chinese renminbi and are as
follows:
Dec. 31, 2025
Accounts receivable, gross
2,390
233
36
25
96
2,780
Weighted average loss rate
0.9%
4.6%
26.6%
32.3%
99.9%
5.2%
Loss allowance
(21)
(11)
(10)
(8)
(96)
(145)
Accounts receivable, net
2,369
222
27
17
0
2,634
Dec. 31, 2024
Accounts receivable, gross
2,139
235
50
44
125
2,593
Weighted average loss rate
1.2%
5.6%
21.9%
23.0%
95.6%
6.9%
Loss allowance
(26)
(13)
(11)
(10)
(120)
(180)
Accounts receivable, net
2,113
222
39
34
6
2,413
Accounts receivable € in millions
Collective loss allowance
Individual
loss
allowance
Total
Not yet
due
Past due
1 –
90 days
Past due > 90 days
Not credit-
impaired
Not credit-
impaired
Not credit-
impaired
Credit-
impaired
Credit-
impaired
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Loss allowances at January 1
180
229
Net remeasurement of loss allowances
(1)
(30)
Write-offs charged against the loss allowance accounts
(30)
(22)
Currency translation differences
(8)
0
Other changes
3
2
Loss allowances at December 31
145
180
Movement in loss allowances for accounts receivable € in millions
2025
2024
As at December 31, 2025, the loss allowance for not-credit-impaired accounts receivable in the amount of
€ 464 million and credit-impaired accounts receivable in the amount of € 5 million was not recognized, as
adidas holds credit enhancement instruments, mainly in the form of credit insurance and bank guarantees,
which mitigate the credit risk of those financial assets.
There are no material balances of accounts receivable written off but subject to enforcement activity.
Accounts receivable are derecognized when substantially all the risks and rewards incidental to the
financial asset are transferred to a third party under factoring arrangements. As of December 31, 2025,
there were no factoring agreements and therefore no receivables were derecognized in this context
(2024: € 21 million).
Further information about credit risks is contained in these Notes.
►SEE NOTE 28
06
Other current financial assets
Other current financial assets consist of the following:
Currency options
8
22
Forward exchange contracts
101
217
Suppliers with debit balances
25
38
Security deposits
55
66
Receivables from credit cards and similar receivables
165
300
Other investments
23
75
Earn-out components
75
157
Sundry
67
80
Other current financial assets, gross
519
955
Less: accumulated allowances
(1)
(6)
Other current financial assets, net
518
950
Other current financial assets € in millions
Dec. 31, 2025
Dec. 31, 2024
The decrease in ‘Other investments’ is mainly driven by payouts related to variable compensation
components and a decrease of the fair value by € 9 million, which results from the stock price
development.
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The decrease in earn-out components reflects the settlement of the earn-out payment during the period.
These Notes contain further information about earn-out components.
►SEE NOTE 03 ►SEE NOTE 28
Further information about currency options and forward exchange contracts is contained in these Notes.
►SEE NOTE 28
07
Inventories
Inventories by major classification are as follows:
Merchandise and
finished goods on hand
4,311
(143)
4,168
3,454
(173)
3,281
Goods in transit
1,656
—
1,656
1,698
—
1,698
Raw materials
8
—
8
10
—
10
Work in progress
0
—
0
0
—
0
Inventories
5,975
(143)
5,832
5,162
(173)
4,989
Inventories € in millions
Dec. 31, 2025
Dec. 31, 2024
Gross value
Allowance for
obsolescence
Net value
Gross value
Allowance for
obsolescence
Net value
Goods in transit mainly relate to shipments of finished goods and merchandise from suppliers in Asia to
subsidiaries in Europe, North America, Asia, and Latin America.
Expenses from write-down on inventories amounted to € 37 million in 2025 (2024: Income of € 98 million).
The income in 2024 primarily results from a positive development in the aging structure of inventories over
the course of the financial year. In 2025, the aging structure of inventories remained stable at a
comparable level.
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08
Other current assets
Other current assets consist of the following:
Prepaid expenses
353
290
Return assets
288
303
Tax receivables other than income taxes
407
329
Contract assets
12
12
Customs holdbacks
63
—
Sundry
86
68
Other current assets, gross
1,211
1,001
Less: accumulated allowances
(2)
(4)
Other current assets, net
1,208
997
Other current assets € in millions
Dec. 31, 2025
Dec. 31, 2024
Prepaid expenses mainly relate to promotion and service contracts. Customs holdbacks relate to temporary
withholdings resulting from regulatory changes in the customs clearance process. The increase in the line
item ‘Tax receivables other than income taxes’ relates mainly to value-added tax.
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09
Property, plant, and equipment
The following table presents a reconciliation of the carrying amount of property, plant, and equipment:
Acquisition cost
January 1, 2024
2,300
530
1,878
156
4,864
Additions
121
14
212
71
419
Disposals
(55)
(12)
(111)
(8)
(186)
Transfers
63
34
31
(128)
0
Currency translation differences
53
13
12
3
82
December 31, 2024/January 1, 2025
2,482
579
2,023
95
5,180
Additions
119
7
165
72
363
Disposals
(73)
(17)
(200)
(3)
(293)
Transfers
69
6
(6)
(72)
(3)
Currency translation differences
(127)
(36)
(114)
(8)
(285)
December 31, 2025
2,470
540
1,867
84
4,961
Accumulated depreciation and
impairment
January 1, 2024
922
340
1,445
0
2,707
Depreciation
150
53
219
—
422
Impairment losses
11
4
4
0
19
Reversals of impairment losses
(4)
(0)
(3)
—
(7)
Disposals
(25)
(11)
(102)
—
(138)
Transfers
8
(0)
(8)
(0)
(0)
Currency translation differences
23
9
11
(0)
44
December 31, 2024/January 1, 2025
1,086
394
1,566
0
3,047
Depreciation
146
49
198
—
393
Impairment losses
3
0
3
0
6
Reversals of impairment losses
(1)
(3)
(3)
—
(7)
Disposals
(69)
(13)
(196)
—
(278)
Transfers
26
0
(26)
—
—
Currency translation differences
(60)
(25)
(88)
0
(173)
December 31, 2025
1,132
403
1,453
0
2,988
Net carrying amount
January 1, 2024
1,378
190
434
156
2,157
December 31, 2024/January 1, 2025
1,396
185
457
95
2,133
December 31, 2025
1,338
137
414
84
1,973
Property, plant, and equipment € in millions
Land and
buildings
Technical
equipment
and
machinery
Other
equipment,
furniture,
and fixtures
Construction
in progress
Property,
plant, and
equipment
As a general principle, it is regularly assessed whether there are any indications that property, plant, and
equipment might be impaired.
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Irrespective of the existence of such indications, furniture and fixtures in adidas’ own retail stores as part
of the cash-generating unit are tested annually for impairment, whereby the recoverable amount (value in
use) of the cash-generating unit, as part of determining the profitability of adidas’ own retail stores, is
calculated using the ‘discounted cash flow method.’
Impairment losses recognized in 2025 mainly relate to the company’s own retail activities, for which,
contrary to initial expectations, no sufficient future economic benefit is expected.
In 2025, impairment losses of € 6 million were recognized for property, plant, and equipment. They are
mainly attributable to Greater China with € 2 million, Emerging Markets with € 2 million, North America with
€ 1 million, and Latin America with € 1 million. The reversals of impairment losses of € 7 million are mainly
attributable to Japan/South Korea with € 4 million, Greater China with € 1 million, and Emerging Markets
with € 1 million. Both were recognized in the other operating expenses. These Notes provide further
information on the methodology on impairment losses for adidas’ own retail stores.
►SEE NOTE 10
Further information on total depreciation and amortization expenses, impairment losses, and reversals of
impairment losses is provided in these Notes.
►SEE NOTE 31
10
Right-of-use assets
The following table presents a reconciliation of the carrying amount of right-of-use assets:
January 1, 2025
2,727
11
41
2,779
Additions
659
1
20
681
Disposals
(67)
(0)
(5)
(72)
Depreciation
(611)
(6)
(22)
(639)
Impairment losses
(23)
—
(3)
(26)
Reversal of impairment losses
3
—
—
3
Currency translation differences
(122)
(0)
(2)
(124)
Transfers
3
—
—
3
December 31, 2025
2,569
6
30
2,605
Right-of-use assets € in millions
Land and
buildings
Technical
equipment and
machinery
Other equipment,
furniture, and
fixtures
Right-of-use
assets
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January 1, 2024
2,195
17
36
2,247
Additions
1,192
9
26
1,227
Disposals
(84)
—
—
(84)
Depreciation
(605)
(14)
(21)
(640)
Impairment losses
(19)
—
—
(19)
Reversal of impairment losses
21
—
—
21
Currency translation differences
25
—
—
25
December 31, 2024
2,727
11
41
2,779
Right-of-use assets € in millions
Land and
buildings
Technical
equipment and
machinery
Other equipment,
furniture, and
fixtures
Right-of-use
assets
As a general principle, it is regularly assessed whether there are any indications that right-of-use assets
might be impaired. Irrespective of the existence of such indications, right-of-use assets in adidas’ own retail
stores are tested annually for impairment, whereby the recoverable amount (value in use) of the cash-
generating unit, as part of determining the profitability of adidas’ own retail stores, is calculated using the
‘discounted cash flow method.’
In 2025, impairment losses of € 26 million were recognized, with the full amount attributable to the
company’s own retail activities, for which, in contrast to expectations in the previous year, lower future
economic benefits are expected.
Impairment losses relating to retail stores, which are shown under property, plant, and equipment and right-
of-use assets, are mainly attributable to Greater China with € 15 million, North America with € 9 million and
Emerging Markets with € 4 million. Discount rates between 0.1% and 25.8% were used to calculate the
impairment for the value in use (2024: 1.1%-34.0%). The recoverable amounts of adidas’ own retail stores
break down into North America at € 55 million, Greater China at € 44 million, Emerging Markets at
€ 31 million, Europe at € 25 million, Japan/South Korea at € 22 million and Latin America at € 6 million.
In 2025, reversals of impairment losses of € 3 million were incurred. They mainly result from Emerging
Markets and Europe. The impairment losses and reversals of impairment losses were recognized in the
other operating expenses.
In 2025, reclassifications totaling € 3 million were made from property, plant, and equipment to right-of-
use-assets.
Further information on total depreciation and amortization expenses, impairment losses and reversals of
impairment losses is provided in these Notes.
►SEE NOTE 31
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341
11
Goodwill
The following table presents a reconciliation of the carrying amount of goodwill:
Goodwill, gross
1,600
1,701
Less: accumulated impairment losses
(397)
(426)
Goodwill, net
1,203
1,275
Goodwill € in millions
Dec. 31, 2025
Dec. 31, 2024
adidas determines whether goodwill impairment is necessary at least on an annual basis. The impairment
test for goodwill is performed based on groups of cash-generating units that represent the lowest level
within the company at which goodwill is monitored for internal management purposes. This requires an
estimation of the recoverable amount of the groups of cash-generating units to which the goodwill is
allocated. The recoverable amount of a group of cash-generating units is determined based on its value in
use. Estimating the value in use requires adidas to make an estimate of the expected future cash flows
from the groups of cash-generating units and to choose a suitable discount rate to calculate the present
value of those cash flows.
This calculation uses cash flow projections based on the financial planning covering a four-year period in
total. The planning is based on long- term expectations of the company and reflects an average annual high-
single digit sales increase with varying forecast growth prospects for the different groups of cash-generating
units. Furthermore, adidas expects the operating margin to improve to a level of low double-digit
profitability, primarily driven by an improvement in gross margin, as well as lower operating expenses as a
percentage of sales. The planning for capital expenditure and working capital is primarily based on past
experience. The planning for future tax payments is based on current statutory corporate tax rates of the
individual groups of cash-generating units. Cash flows beyond this four-year period are extrapolated using
steady growth rates between 1.4% and 3.3% (2024: 1.4%-3.0%). According to the company’s expectations,
these growth rates do not exceed the long-term average growth rate of the business sector in which the
respective group of cash-generating units operates.
Discount rates are based on a weighted average cost of capital calculation considering a five-year average
market-weighted debt/equity structure and financing costs referencing major competitors for the respective
group of cash-generating units. The discount rates used reflect the specific equity and country risk of the
respective group of cash-generating units.
The groups of cash-generating units are defined as the regional markets that are responsible for the
distribution. The regional markets are Europe, North America, Greater China, Emerging Markets, Latin
America, Japan, and South Korea. The number of cash-generating units amount to a total of seven at the
end of 2025 (2024: seven).
The annual goodwill impairment tests revealed no need for goodwill impairment for the years ending
December 31, 2025 and 2024.The carrying amounts of acquired goodwill allocated to the respective
groups of cash-generating units and the respective discount rates applied to the cash flow projections are
as follows:
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Europe
483
513
11.7%
13.6%
North America
77
79
12.0%
12.8%
Greater China
283
303
12.2%
13.4%
Emerging Markets
271
287
16.4%
17.3%
Japan
33
35
13.6%
13.6%
South Korea
55
58
12.3%
13.2%
Total
1,203
1,275
Allocation of goodwill
Goodwill (€ in millions)
Discount rate (pre-tax)
Dec. 31, 2025
Dec. 31, 2024
Dec. 31, 2025
Dec. 31, 2024
A change in the discount rate by up to around 3 percentage points or a reduction of planned free cash
inflows by up to approximately 34% would not result in any impairment requirement.
Future changes in expected cash flows and discount rates may lead to impairments of the reported goodwill
in the future.
The majority of goodwill is denominated in US dollars. The effect of currency translation is as follows:
January 1, 2025
513
79
303
287
35
58
1,275
Currency translation
differences
(30)
(2)
(20)
(16)
(2)
(2)
(72)
December 31, 2025
483
77
283
271
33
55
1,203
Reconciliation of goodwill, net € in millions
Europe
North
America
Greater
China
Emerging
Markets
Japan
South
Korea
Total
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12
Other intangible assets
Other intangible assets consist of the following:
Acquisition cost
January 1, 2024
78
1,351
1,429
Additions
37
83
121
Disposals
(5)
(60)
(66)
Transfers
—
(0)
(0)
Decrease in companies consolidated
—
—
—
Currency translation differences
—
11
11
December 31, 2024/January 1, 2025
109
1,386
1,495
Additions
25
89
114
Disposals
(2)
(147)
(148)
Transfers
(3)
2
(1)
Currency translation differences
—
(23)
(23)
December 31, 2025
130
1,307
1,437
Accumulated amortization and impairment
January 1, 2024
27
959
987
Amortization
11
98
109
Impairment losses
—
0
0
Reversals of impairment losses
—
(0)
(0)
Disposals
(2)
(32)
(34)
Transfers
—
(0)
(0)
Decrease in companies consolidated
—
(0)
(0)
Currency translation differences
—
7
7
December 31, 2024/January 1, 2025
36
1,033
1,069
Amortization
15
75
89
Impairment losses
—
1
1
Reversals of impairment losses
—
(10)
(10)
Disposals
(2)
(136)
(138)
Transfers
—
—
—
Currency translation differences
—
(17)
(17)
December 31, 2025
49
945
994
Net carrying amount
January 1, 2024
50
392
442
December 31, 2024/January 1, 2025
74
353
426
December 31, 2025
81
361
443
Other intangible assets € in millions
Internally
developed
intangible
assets
Miscellaneous
intangible
assets
Other intangible
assets
Internally developed intangible assets mainly relate to internally generated software.
Further information on total depreciation and amortization expenses, impairment losses, and reversals of
impairment losses is provided in these Notes.
►SEE NOTE 31
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344
13
Long-term financial assets
Long-term financial assets primarily include an 8.33% investment in FC Bayern München AG (2024: 8.33%)
of € 93 million (2024: € 91 million). This investment is classified as fair value through profit or loss and is
recorded at fair value. This equity security does not have a quoted market price in an active market.
Therefore, existing contractual arrangements are used in order to calculate the fair value as at
December 31, 2025 and 2024.
Other equity investments include minority shareholdings. There is currently no intention to sell these
shares. Other minority shareholdings include an decrease of the fair value in an amount of € 62 million in
2025 (2024: € 1 million increase).
The line item ‘Other investments’ comprises investments that are mainly invested in insurance products,
which are measured at fair value, and securities for long-term variable compensation components. The
increase in ‘Other investments’ results from the investment in securities for variable compensation
components. This increase was partly offset by a reduction in fair value in an amount of € 50 million in
2025 (2024: € 29 million increase), which results from the stock price development.
Investment in FC Bayern München AG
93
91
Other equity investments
26
86
Other investments
233
163
Long-term financial assets
353
340
Long-term financial assets € in millions
Dec. 31, 2025
Dec. 31, 2024
14
Other non-current financial assets
Other non-current financial assets consist of the following:
Forward exchange contracts
3
12
Currency options
1
2
Security deposits
73
74
Earn-out components
87
97
Sundry
53
50
Other non-current financial assets
217
234
Other non-current financial assets € in millions
Dec. 31, 2025
Dec. 31, 2024
The decrease in earn-out components reflects the reclassification to current financial assets due to
expected payments within the next 12 months, which are partially offset by an increase in fair value. These
Notes contain further information about earn-out components.
►SEE NOTE 03 ►SEE NOTE 28
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15
Other non-current assets
Other non-current assets consist of the following:
Prepaid expenses
102
112
Customs refund claims
307
176
Sundry
6
3
Other non-current assets
415
291
Other non-current assets € in millions
Dec. 31, 2025
Dec. 31, 2024
Prepaid expenses mainly relate to long-term promotion contracts.
►SEE NOTE 38
16
Borrowings and credit lines
Borrowings are denominated in a variety of currencies in which adidas conducts its business. The largest
portion of effective gross borrowings (before liquidity swaps for cash management purposes) as at
December 31, 2025, is denominated in euros (2025: 94%; 2024: 98%).
The weighted average interest rate on the Group’s gross borrowings increased to 3.1% in 2025
(2024: 2.5%).
As at December 31, 2025, adidas had cash credit lines and other long-term financing arrangements totaling
€ 6.0 billion 2024: € 6.0 billion); thereof unused credit lines accounted for € 3.3 billion
(2024: € 3.6 billion). In addition, as at December 31, 2025, adidas had separate lines for the issuance of
letters of credit and guarantees in an amount of approximately € 0.5 billion (2024: € 0.4 billion).
In November 2020, adidas entered into a new syndicated credit facility agreement with twelve banks
totaling € 1.5 billion. The credit facility agreement was subsequently amended and restated in October
2021 and in November 2022 increasing the size to € 2.0 billion, covered by eleven partner banks, and
extending the maturity until November 2027. In December 2023, adidas reduced the syndicated credit
facility size to € 1.864 billion and the number of lending banks to ten partner banks. The syndicated credit
facility can be drawn in euros and US dollars. The interest is based on a defined margin on a reference rate
(‘€STR’ or ‘EURIBOR’ for euros).
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The amounts reported as gross borrowings represent outstanding borrowings under the following
arrangements with aggregated expiration dates as follows:
Bank borrowings incl. commercial
paper
246
7
—
—
252
Eurobond
400
498
995
497
2,389
Total
645
505
995
497
2,642
Book value of gross borrowings as at December 31, 2025 € in millions
Up to 1 year
Between 1
and 3 years
Between 3
and 5 years
More than
5 years
Total
Bank borrowings incl. commercial
paper
70
26
—
—
96
Eurobond
499
399
994
496
2,389
Total
570
425
994
496
2,485
Book value of gross borrowings as at December 31, 2024 € in millions
Up to 1 year
Between 1
and 3 years
Between 3
and 5 years
More than
5 years
Total
A Eurobond was issued in November 2025 to refinance an expiring Eurobond. As of December 2025
following bonds are outstanding:
Issued Bonds
Issuance Date
Volume
(€ in millions)
Coupon
Issue Price
Spread
(basis points)
Maturity
Eurobond
Oct. 2014
400
2.250%
99.357%
100
Oct. 2026
Eurobond
Sep. 2020
500
0.625%
99.360%
63
Sep. 2035
Sustainability
Bond
Sep. 2020
500
0.000%
99.410%
40
Oct. 2028
Eurobond
Nov. 2022
500
3.125%
99.272%
45
Nov. 2029
Eurobond
Nov. 2025
500
2.750%
99.922%
42
Nov. 2030
Further details on future cash outflows are provided in these Notes.
►SEE NOTE 28
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17
Other current financial liabilities
Other current financial liabilities consist of the following:
Forward exchange contracts
214
76
Currency options
56
1
Customer with credit balances
53
79
Embedded derivatives
2
1
Sundry
10
34
Other current financial liabilities
335
191
Other current financial liabilities € in millions
Dec. 31, 2025
Dec. 31, 2024
Further information about forward exchange contracts and currency options is contained in these Notes.
►SEE NOTE 28
18
Other provisions
Other provisions consist of the following:
Marketing
17
9
—
(11)
(0)
(2)
14
—
Personnel
462
163
(3)
(174)
(67)
(17)
365
109
Returns and warranty
691
559
—
(478)
(48)
(59)
664
—
Taxes, other than income taxes
93
14
(0)
(38)
(22)
(7)
41
—
Customs
268
33
(4)
(13)
(39)
(16)
228
183
Sundry
359
157
(0)
(70)
(98)
(16)
332
144
Other provisions
1,890
935
(7)
(783)
(275)
(116)
1,644
436
Other provisions € in millions
Jan. 1, 2025
Additions
Change in
discounted
amount
Usage
Reversals
Currency
translation
differences
Dec. 31, 2025
Thereof
non-
current
Marketing provisions mainly consist of provisions for promotion contracts, which are comprised of
obligations to clubs and athletes.
Provisions for personnel mainly consist of provisions for short-term and long-term variable compensation
components as well as of provisions for social plans and for a voluntary leave program.
Provisions for returns and warranty primarily arise due to the obligation of fulfilling customer claims with
regard to the return of products sold by adidas. The amount of the provision follows the historical
development of returns and warranty as well as current agreements.
Provisions for taxes other than income taxes mainly relate to tax risks.
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Sundry provisions mainly include provisions for onerous contracts as well as for dismantling and restoration
costs.
Non-current provisions consist of provisions for long-term variable compensation components with a time
frame of three to four years, which are discounted with country-specific interest rates, as well as customs
provisions with a time horizon of more than one year.
Management follows past experience from similar transactions when assessing the recognition and the
measurement of provisions; in particular, external legal opinions are considered for provisions for customs
risks and for litigation and other legal risks. All evidence from events until the preparation of the
consolidated financial statements is taken into account.
19
Lease liabilities
Lease liabilities consist of the following:
Land and buildings
2,873
3,047
Technical equipment and machinery
6
12
Other equipment, furniture, and fixtures
35
44
Lease liabilities
2,913
3,102
Lease liabilities € in millions
Dec. 31, 2025
Dec. 31, 2024
The contractual payments for lease liabilities held by adidas as at December 31, 2025, in an amount of
€ 3.4 billion (2024: € 3.6 billion), mature as follows:
Within 1 year
749
751
Between 1 and 5 years
1,815
1,807
After 5 years
859
1,004
Total
3,423
3,562
Contractual payments for lease liabilities € in millions
Dec. 31, 2025
Dec. 31, 2024
Interest recognized on lease liabilities in 2025 amounted to € 109 million (2024: € 99 million).
Expenses from leases classified as short-term, low-value, or variable are excluded from the measurement
of the lease liability. Further information on total expenses relating to short-term, low-value, and variable
leases is provided in these Notes.
►SEE NOTE 31
In 2025, the total cash outflows for leases, including the above-mentioned leases not included in the
calculation of the lease liability, amounted to € 919 million (2024: € 895 million).
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20
Accrued liabilities
Accrued liabilities consist of the following:
Goods and services received but not yet
invoiced
818
—
1,010
—
Marketing and sales
1,034
—
1,030
—
Personnel
498
—
584
—
Sundry
32
—
34
—
Accrued liabilities
2,383
—
2,659
—
Accrued liabilities € in millions
Dec. 31, 2025
Thereof:
non-current
Dec. 31, 2024
Thereof:
non-current
Accrued liabilities for marketing and sales mainly consist of accruals for distribution, such as discounts,
rebates, and sales commissions.
Accrued liabilities for personnel mainly consist of accruals for outstanding salary payments, such as
bonuses and overtime, as well as outstanding vacation.
Sundry accrued liabilities include accruals for interest.
21
Other current liabilities
Other current liabilities consist of the following:
Tax liabilities other than income taxes
379
316
Liabilities due to personnel
40
35
Liabilities due to social security
29
29
Deferred income
113
107
Contract liabilities
1
1
Donation commitments
54
31
Sundry
36
80
Other current liabilities
652
598
Other current liabilities € in millions
Dec. 31, 2025
Dec. 31, 2024
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22
Other non-current financial liabilities
Other non-current financial liabilities consist of the following:
Forward exchange contracts
6
1
Currency options
0
—
Other non-current financial liabilities
7
1
Other non-current financial liabilities € in millions
Dec. 31, 2025
Dec. 31, 2024
Further information about forward exchange contracts and currency options is provided in these Notes.
►SEE NOTE 28
23
Pensions and similar obligations
adidas has recognized post-employment benefit obligations arising from defined benefit plans. The benefits
are provided pursuant to the legal, fiscal, and economic conditions in each respective country and mainly
depend on the employees’ years of service and remuneration.
Liability arising from defined benefit pension plans
101
141
Similar obligations
0
0
Pensions and similar obligations
101
141
Pensions and similar obligations € in millions
Dec. 31, 2025
Dec. 31, 2024
The liability arising from defined benefit pension plans consists on the one hand of assets from defined
benefit pension plans in an amount of € 5 million (2024: € 3 million), and on the other hand of provisions
for pensions and similar obligations in an amount of € 106 million (2024: € 144 million).
Defined contribution pension plans
The total expense for defined contribution pension plans amounted to € 97 million in 2025
(2024: € 84 million).
Defined benefit pension plans
Given the company’s diverse subsidiary structure, different defined benefit pension plans exist, comprising
a variety of post-employment benefit arrangements. The company’s major defined benefit pension plans
relate to adidas AG and its subsidiary in the UK. The defined benefit pension plans generally provide
payments in case of death, disability, or retirement to former employees and their survivors. The obligations
arising from defined benefit pension plans are partly covered by plan assets. In addition, there are
significant obligations from a plan to cover the medical costs of pensioners in the US.
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In Germany, adidas AG grants its employees contribution-based and final-salary-defined benefit pension
schemes, which provide employees with entitlements in the event of retirement, disability, and death.
German pension plans operate under the legal framework of the German Company Pensions Act
(‘Betriebsrentengesetz’) and under general German labor legislation. Active existing employees and new
entrants are entitled to benefits in accordance with the general company agreement ‘Core Benefits: adidas
company pension plan.’ This is a pension plan with a basic employer contribution, possible salary
sacrifices, and additional matching contribution. Thus, the contributions to this pension plan are partly paid
by the employee and partly paid by the employer. The contributions are transferred into benefit
components. The benefits are paid out in the form of a pension, a lump sum, or installments. The pension
plans in Germany are financed using book reserves, a ‘Contractual Trust Arrangement’ (‘CTA’) and, for
certain former members of the Executive Board of adidas AG, a pension fund (‘Pensionsfonds’) in
combination with a reinsured provident fund (‘Unterstützungskasse’).
The final salary defined benefit pension scheme in the UK is closed to new entrants and to future accrual.
The benefits are mainly paid out in the form of pensions. The scheme operates under UK trust law as well
as under the jurisdiction of the UK Pensions Regulator and therefore is subject to a minimum funding
requirement. The Trustee Board is responsible for setting the scheme’s funding objective, agreeing the
contributions with the company, and determining the investment strategy of the scheme.
The legal framework for employer-provided benefits to cover healthcare costs for retirees in the United
States is primarily governed by the Employee Retirement Income Security Act (ERISA) and the Internal
Revenue Code (IRC). These laws establish the rules and regulations that employers must follow when
providing these benefits to their employees. The fully unfunded medical plan is open to new participants
who have, at the end of their employment, completed at least ten years of service, are at least 55 years of
age, and are entitled to subsidized medical care. The plan provides medical, pharmaceutical, dental, and
ophthalmologic services from retirement until maximum the age of 65 (or without age limit until death for a
closed group of retirees). At age 65, they are expected to receive state medical benefits from US Medicare.
Active members
219
—
16
231
—
16
Former employees with vested rights
169
29
—
177
30
—
Pensioners
99
5
9
104
6
9
Total
487
34
25
512
36
25
Breakdown of the present value of the significant obligations arising from defined benefit pension € in millions
Dec. 31, 2025
Dec. 31, 2024
Germany
UK
USA
Germany
UK
USA
The Group’s pension plans are subject to risks from changes in actuarial assumptions, such as the
discount rate, salary, and pension increase rates, and risks from changes in mortality. A lower discount
rate results in a higher defined benefit obligation and/or in higher contributions to the pension funds.
Lower-than-expected performance of the plan assets could lead to an increase in required contributions or
to a decline of the funded status.
The following tables analyze the defined benefit plans, plan assets, present values of the defined benefit
pension plans, expenses recognized in the consolidated income statement, actuarial assumptions, and
further information.
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352
Present value of funded obligation from defined benefit pension plans
587
609
Fair value of plan assets
(548)
(525)
Funded status
39
84
Present value of unfunded obligation from defined benefit pension plans
54
54
Effect of asset ceiling in accordance with IAS 19.64
7
3
Net defined benefit liability
101
141
Thereof: liability
106
144
Thereof: adidas AG
42
80
Thereof: asset
(5)
(3)
Thereof: adidas AG
—
—
Amounts for defined benefit pension plans recognized in the consolidated statement of financial position € in
millions
Dec. 31, 2025
Dec. 31, 2024
The determination of assets and liabilities for defined benefit plans is based on actuarial valuations. In
particular, the present value of the defined benefit obligation is driven by financial variables (such as the
discount rates or future increases in salaries) and demographic variables (such as mortality and employee
turnover). The actuarial assumptions may differ significantly from the actual circumstances and could lead
to different cash flows.
Discount rate
4.3
3.8
Expected rate of salary increases
4.3
4.2
Expected pension increases
2.1
2.1
Weighted average actuarial assumptions in %
Dec. 31, 2025
Dec. 31, 2024
Discount rate
4.2
5.7
4.9
3.5
5.6
5.1
Expected rate of salary increases
—
—
—
—
—
—
Expected pension increases
2.2
2.2
—
2.2
2.2
—
Breakdown of the actuarial assumptions in %
Dec. 31, 2025
Dec. 31, 2024
Germany
UK
USA
Germany
UK
USA
The weighted average actuarial assumptions as at the balance sheet date are used to determine the
defined benefit liability at that date and the pension expense for the upcoming financial year.
The actuarial assumptions for withdrawal and mortality rates are based on statistical information available
in the various countries. In Germany, the Heubeck 2018 G mortality tables are used. In the UK,
assumptions are based on the S3 base table, and in the US they are based on the Pri-2012 base table.
The mortality tables in the UK and in the US were modified to account for future changes in life expectancy.
As in the previous year, the calculation of the pension liabilities in Germany, the UK, and the US is based
on discount rates determined using the ‘Mercer Yield Curve (MYC)’ approach.
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Remeasurements, such as gains or losses arising from changes in the actuarial assumptions for defined
benefit pension plans or a return on the plan assets exceeding the interest income, are immediately
recognized outside the income statement as a change in other reserves in the consolidated statement of
comprehensive income.
Current service cost
32
30
Net interest expense
5
5
Thereof: interest cost
24
23
Thereof: interest income
(19)
(18)
Past service (credit)
(0)
(11)
Expenses for defined benefit pension plans (recognized in the consolidated
income statement)
37
24
Actuarial (gains)/losses on liability
(41)
16
Thereof: due to changes in financial assumptions
(43)
5
Thereof: due to changes in demographic assumptions
2
(0)
Thereof: due to experience adjustments
(0)
11
Loss/(return) on plan assets (not included in net interest income)
3
(11)
Change in asset ceiling (excluding interest cost)
4
0
Remeasurements for defined benefit pension plans (recognized as
(increase)/decrease in other reserves in the consolidated statement of
comprehensive income)
(34)
5
Total
3
29
Pension expenses for defined benefit pension plans € in millions
Year ending
Dec. 31, 2025
Year ending
Dec. 31, 2024
Of the total pension expenses recorded in the consolidated income statement, an amount of € 19 million
(2024: € 18 million) relates to employees of adidas AG and expense of € 3 million (2024: Income of
€ 5 million) relates to employees in the US. The pension expense is mainly recorded within other operating
expenses. The production-related part of the pension expenses is recognized within cost of sales.
Present value of the obligation from defined benefit pension plans as at
January 1
663
625
Currency translation differences
(10)
2
Current service cost
32
30
Interest cost
23
23
Contribution by plan participants
2
2
Pensions paid
(26)
(22)
Actuarial (gains)/losses
(41)
16
Thereof: due to changes in financial assumptions
(43)
5
Thereof: due to changes in demographic assumptions
2
(0)
Thereof: due to experience adjustments
(0)
11
Past service (credit)
(0)
(11)
Business combinations/transfers/divestitures
—
(0)
Present value of the obligation from defined benefit pension plans as at
December 31
642
663
Present value of the defined benefit obligation € in millions
2025
2024
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Of the total actuarial gains recognized in equity, an amount of € 44 million (2024: Loss of less than
€ 1 million) relates to pension schemes at adidas AG, a loss of € 6 million (2024: Gain of € 1 million) to the
UK and a loss of € 2 million (2024: Gain of less than € 1 million) to the US.
In the following table, the effects of reasonably conceivable changes in the actuarial assumptions on the
present value of the obligation from defined benefit pension plans are analyzed for Germany, the UK, and
the US. In addition, the average duration of the obligation is shown.
Present value of the obligation from
defined benefit pension plans
487
34
25
512
36
25
Increase in the discount rate by 0.5%
460
32
24
480
33
24
Reduction in the discount rate by 0.5%
517
37
26
546
38
26
Average duration of the obligations (in
years)
12
16
7
13
16
7
Sensitivity analysis of the obligation from defined benefit pension plans € in millions
Dec. 31, 2025
Dec. 31, 2024
Germany
UK
USA
Germany
UK
USA
Since many pension plans are closed to future accrual, the salary trend plays a minor role in determining
pension obligations. With the introduction of the Core Benefits arrangement, German pension plans are
mainly paid as lump sums, so the pension increase rate and the mortality assumption have significantly
less impact than the discount rate when calculating the pension obligations.
Fair value of plan assets as at January 1
525
492
Currency translation differences
(4)
0
Pensions paid
(10)
(10)
Contributions by the employer
20
12
Contributions paid by plan participants
2
2
Interest income from plan assets
19
18
(Loss)/return on plan assets (not included in net interest income)
(3)
11
Business combinations/transfers/divestitures
—
(0)
Fair value of plan assets as at December 31
548
525
Fair value of plan assets € in millions
2025
2024
The majority of plan assets are attributable to Germany (2025: 82%, 2024: 83%) and the UK (2025: 6%,
2024: 6%).
Part of the plan assets in Germany is held by a trustee under a contractual trust arrangement (CTA) for the
purpose of funding the pension obligations of adidas AG and insolvency insurance with regard to part of the
pension obligations of adidas AG. The trustee is the registered association adidas Pension Trust e.V. The
investment committee of the adidas Pension Trust determines the investment strategy with the goal to
match the pension liabilities as far as possible and to generate a sustainable return. In 2025, no additional
employer funding contribution was transferred to the trustee. The plan assets in the registered association
are mainly invested in fixed income funds, equity funds and real estate. Another substantial part of the plan
assets in Germany is invested in insurance contracts via a pension fund and a provident fund. For this
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portion, an insurance entity is responsible for the determination and the implementation of the investment
strategy.
In the UK, the plan assets are held in an external trust. The Trustees completed a buy-in transaction in
November 2025 by purchasing annuity policies covering all the benefits of the members of the plan, except
for a component relating to Guaranteed Minimum Pensions. The pension liabilities in respect of the scheme
members remain within the plan but are now covered by insured assets which match the liabilities. In
principle, the investment strategy is aligned with the structure of the pension obligations in these countries.
In the rest of the world, the plan assets consist predominantly of insurance contracts.
The expected total employer contributions for the 2026 financial year amount to € 35 million. Thereof,
€ 28 million relates to benefits directly paid to pensioners by the subsidiaries and € 6 million to employer
contributions paid into the plan assets. In 2025, the actual return on plan assets (including interest
income) was € 15 million (2024: € 29 million).
Cash and cash equivalents
44
32
Equity instruments
138
129
Bonds
157
169
Real estate
95
94
Pension plan reinsurance
82
48
Investment funds
0
34
Other assets
31
20
Fair value of plan assets
548
525
Composition of plan assets € in millions
Dec. 31, 2025
Dec. 31, 2024
All equities and bonds are traded freely and have a quoted market price in an active market.
At each balance sheet date, the company analyzes the over- or underfunding and, where appropriate,
adjusts the composition of plan assets.
As of December 31, 2025, the plan assets eligible for offsetting are required to be reduced by € 7 million
(2024: € 3 million) due to the application of IAS 19.64. The increase of € 4 million will be recognized
mainly as a decrease in other reserves in the consolidated statement of comprehensive income.
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24
Other non-current liabilities
Other non-current liabilities consist of the following:
Deferred income
1
1
Liabilities due to personnel
0
0
Donation commitment
138
153
Sundry
3
—
Other non-current liabilities
143
154
Other non-current liabilities € in millions
Dec. 31, 2025
Dec. 31, 2024
25
Shareholders’ equity
As at December 31, 2025, the nominal capital of adidas AG amounted to € 180,000,000 divided into
180,000,000 registered no-par-value shares and was fully paid in.
Each share grants one vote and is entitled to dividends starting from the commencement of the year in
which it was issued. Treasury shares held directly or indirectly are not entitled to dividend payment in
accordance with § 71b German Stock Corporation Act (Aktiengesetz – AktG). As at the balance sheet date,
adidas AG held 1,334,982 treasury shares, corresponding to a notional amount of € 1,334,982 in the
nominal capital and consequently to 0.74% of the nominal capital.
Authorized capital 2025/I and 2025/II
The Executive Board of adidas AG did not utilize the existing amount of authorized capital of up to
€ 70 million in the reporting period.
The authorized capital of adidas AG, which is set out in § 4 sections 2 and 3 of the Articles of Association
as at the balance sheet date, entitles the Executive Board, subject to Supervisory Board approval, to
increase the nominal capital based on the following authorizations:
Based on the authorization granted by resolution of the Annual General Meeting of May 15, 2025, until
June 5, 2030,
─by issuing new shares against contributions in cash once or several times by no more than € 50 million
altogether and, subject to Supervisory Board approval, to exclude residual amounts from shareholders’
subscription rights (Authorized Capital 2025/I);
Based on the authorization granted by resolution of the Annual General Meeting of May 15, 2025, until
June 5, 2030,
─by issuing new shares against contributions in kind and/or cash once or several times by no more than
€ 20 million altogether (Authorized Capital 2025/II), and, subject to Supervisory Board approval, to
exclude residual amounts from shareholders’ subscription rights, to wholly or partly exclude
shareholders’ subscription rights when issuing shares against contributions in kind and to exclude
shareholders’ subscription rights when issuing shares against contributions in cash if the new shares
against contributions in cash are issued at a price not significantly below the stock market price of the
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company’s shares already quoted on the stock exchange at the point in time when the issue price is
ultimately determined, which should be as close as possible to the placement of the shares; this
exclusion of subscription rights can also be associated with the listing of the company’s shares on a
foreign stock exchange.
The authorization to exclude subscription rights under this authorization, however, may only be used to the
extent that the pro-rata amount of the new shares in the nominal capital, together with the pro-rata amount
in the nominal capital of other shares that have been issued by the company since May 15, 2025, subject
to the exclusion of subscription rights, on the basis of an authorized capital or following a repurchase, or
for which subscription or conversion rights or subscription or conversion obligations have been granted
through the issuance of convertible bonds and/or bonds with warrants while excluding subscription rights,
does not exceed 10% of the nominal capital existing on the date of the entry of this authorization with the
commercial register or – if this amount is lower – on the respective date on which the resolution on the
utilization of the authorization is adopted. The previous sentence does not apply to the exclusion of
subscription rights for residual amounts. The Authorized Capital 2025/II must not be used to issue shares
within the scope of compensation or participation programs for Executive Board members or employees, or
for members of the management bodies or employees of affiliated companies.
Contingent capital 2022
The following overview of the contingent capital is based on § 4 section 4 of the Articles of Association of
adidas AG, as well as on the underlying resolution of the Annual General Meeting held on May 12, 2022.
The nominal capital is conditionally increased by up to € 12.5 million divided into not more than
12,500,000 no-par-value shares (Contingent Capital 2022). The contingent capital increase serves the
issuance of no-par-value shares when exercising option or conversion rights or fulfilling the respective
option and/or conversion obligations or when exercising the company’s right to choose to partially or in
total deliver registered no-par-value shares of the company instead of paying the due amount to the holders
or creditors of bonds issued by the company or a subordinated group company up to May 11, 2027, on the
basis of the authorization resolution adopted by the Annual General Meeting on May 12, 2022. The new
shares will be issued at the respective option or conversion price to be established in accordance with the
aforementioned authorization resolution. The contingent capital increase will be implemented only if bonds
are issued in accordance with the authorization resolution adopted by the Annual General Meeting on
May 12, 2022, and only to the extent that option or conversion rights are exercised or the holders or
creditors of bonds obligated to exercise the option or conversion obligation fulfill their obligations to
exercise the warrant or convert the bond, or to the extent that the company exercises its rights to choose to
deliver no-par-value shares in the company for the total amount or a partial amount instead of payment of
the amount due and insofar as no cash settlement, treasury shares or shares of another public-listed
company are used to service these rights. The new shares carry dividend rights from the commencement of
the financial year in which the shares are issued. In the event that, at the time of issuance of the new
shares, no resolution on the appropriation of retained earnings for the financial year directly preceding the
year in which the shares are issued has been passed, the Executive Board is authorized, to the extent
legally permissible, to determine that the new shares will carry dividend rights from the commencement of
the financial year directly preceding the year in which the shares are issued. Furthermore, the Executive
Board is authorized to stipulate additional details concerning the implementation of the contingent capital
increase.
The Executive Board is authorized, subject to Supervisory Board approval, to exclude shareholders’
subscription rights to the bonds insofar as this is necessary for residual amounts and also insofar as and
to the extent that this is necessary for granting subscription rights to holders or creditors of bonds already
issued before, which they would be entitled to as shareholders upon exercising their option or conversion
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rights or upon fulfilling their option and/or conversion obligations or upon exercising a right to delivery of
shares referring to shares of the company. Finally, the Executive Board is authorized, subject to Supervisory
Board approval, to also exclude shareholders’ subscription rights insofar as the bonds are issued against
contributions in cash and after the Executive Board has concluded, following an examination in accordance
with its legal duties, that the issue price of the bonds is not significantly below the hypothetical market
value computed using recognized, in particular, financial calculation methods and the number of shares
issued does not exceed 10% of the nominal capital, neither at the point of becoming effective nor – in case
this amount is lower – at the point of exercising the aforementioned authorization. Shares which are issued
or sold in accordance with § 186 section 3 sentence 4 AktG during the term of this authorization until its
utilization shall be attributed to the aforementioned limit of 10%. Furthermore, shares that are to be issued
or granted during the term of this authorization on the basis of a bond issued with the exclusion of
subscription rights in accordance with this provision utilizing another authorization shall be attributed to the
aforementioned limit of 10%. The total number of shares that are issued under bonds based on this
authorization with the exclusion of subscription rights and shares that are issued from an authorized capital
with the exclusion of subscription rights during the term of the authorization may not exceed 10% of the
nominal capital on the date of the entry of this authorization with the Commercial Register.
In the period up until the balance sheet date, the Executive Board of adidas AG did not issue any bonds
based on the authorization granted on May 12, 2022, and consequently did not issue any shares from the
Contingent Capital 2022.
Repurchase and use of treasury shares
The Annual General Meeting on May 11, 2023, granted the Executive Board an authorization to repurchase
adidas AG shares up to an amount totaling 10% of the nominal capital until May 10, 2028. The
authorization may be used by adidas AG but also by its subordinated Group companies or by third parties
on account of adidas AG or its subordinated Group companies or third parties assigned by adidas AG or
one of its subordinated Group companies. The Executive Board of adidas AG did not make use of this
authorization in the reporting period.
In the 2025 financial year, a total of 115,934 treasury shares were used as consideration for, inter alia,
the transfer or licensing of industrial property rights and intangible property rights due to contractual
obligations. Using treasury shares while excluding subscription rights enabled adidas AG to acquire
industrial property rights and intangible property rights (or licenses) from the respective owners at attractive
conditions while preserving the company’s liquidity. Based on the share price at the time, the 115,934
shares transferred had a value of altogether approx. € 19 million, corresponding to a notional amount of
€ 115,934 in the nominal capital and consequently to approx. 0.06% of the nominal capital.
►SEE DISCLOSURES PURSUANT TO § 315A AND § 289A OF THE GERMAN COMMERCIAL CODE AND EXPLANATORY REPORT
Changes in the percentage of voting rights
Pursuant to § 160 section 1 no. 8 AktG, information must be provided on the existence of shareholdings
that have been notified to adidas AG in accordance with § 33 section 1 or section 2 German Securities
Trading Act (Wertpapierhandelsgesetz – WpHG).
The table ‘Notified reportable shareholdings’ reflects reportable shareholdings in adidas AG as at the
balance sheet date that have each been notified to adidas AG. In each case, the details relate to the most
recent voting rights notification received by adidas AG from the parties obligated to notify. All voting rights
notifications disclosed by adidas AG in the year under review are available on the corporate website.
►ADIDAS-GROUP.COM/VOTING_RIGHTS_NOTIFICATIONS
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BlackRock, Inc.,
Wilmington, Delaware,
USA1
August 8, 2025
5%
§§ 34, 38 par. 1 no. 1, 2
7.24
0.47
7.71
The Capital Group
Companies, Inc., Los
Angeles, USA
August 5, 2025
3%
§ 34
2.97
—
2.97
Flossbach von Storch SE,
Cologne, Germany
August 1, 2025
3%
§ 34
3.07
—
3.07
Amundi S.A., Paris, France
July 31, 2025
5%
§§ 34, 38 par. 1 no. 1
4.86
0.25
5.11
Ministry of Finance on
behalf of the State of
Norway, Oslo, Norway
June 30, 2025
5%
§ 34
5.11
—
5.11
The Desmarais Family
Residuary Trust (Montreal,
Canada), Gérald Frère and
Ségolène Gallienne-Frère
October 24, 2024
5%
§ 34
3.51
—
3.51
The Goldman Sachs
Group, Inc., Wilmington,
DE, USA
December 12, 2023
5%
§§ 34, 38 par. 1 no. 1, 2
0.18
4.77
4.95
Elian Corporate Trustee
(Cayman) Limited, Camana
Bay, Grand Cayman,
Cayman Islands1
September 16, 2022
5%
§§ 34, 38 par. 1 no. 2
3.13
3.33
6.46
1 Voluntary group notification due to threshold crossing on the subsidiary level.
Notified reportable shareholdings
Notifying party
Date of reaching,
exceeding or
falling below
Reporting
threshold
Notification obligations
and attributions in
accordance with WpHG
Voting rights
attached to
shares (in %)
Instruments
(in %)
Total of voting
rights attached to
shares and
instruments (in %)
The details on the percentage of shareholdings and voting rights may no longer be up to date.
Capital management
The company’s policy is to maintain a strong capital base so as to uphold investor, creditor, and market
confidence and to sustain future development of the business.
adidas seeks to maintain a balance between a higher return on equity that might be possible with higher
levels of borrowings and the advantages and security afforded by a sound capital position. The company
further aims to maintain adjusted net borrowings below two times EBITDA (Earnings before interests, taxes,
depreciation and amortization, and impairment losses and reversals) over the long term. adidas has strong
investment grade ratings from Standard & Poor’s and Moody’s. In June 2025, S&P upgraded the rating
from ‘A-’ to ‘A’, citing stronger-than-expected deleveraging and sustained momentum in underlying operating
performance. Moody’s rates adidas ‘A3’. The outlook for both ratings is stable. Overall, adidas’ investment-
grade credit ratings continue to ensure an efficient access to capital markets.
Financial leverage amounts to 75.0% (2024: 66.1%) and is defined as the ratio between adjusted net
borrowings in an amount of € 4.331 billion (2024: € 3.622 billion) and shareholders’ equity in an amount
of €5.776 billion (2024: € 5.476 billion). EBITDA amounted to €3.124 billion for the financial year ending
December 31, 2025 (2024: € 2.465 billion). The ratio between adjusted net borrowings and EBITDA
amounted to 1.4 for the 2025 financial year (2024: 1.5).
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Income before taxes
1,820
1,121
Adjustments for:
Depreciation, amortization, and impairment losses
1,154
1,208
Reversals of impairment losses
(19)
(28)
Interest income
(58)
(57)
Interest expense
227
221
EBITDA
3,124
2,465
Composition of EBITDA € in millions
2025
2024
The composition of the adjusted net borrowings is presented below:
Short-term borrowings
645
570
Long-term borrowings
1,996
1,915
Current lease liability
603
607
Non-current lease liability
2,310
2,495
Pensions and similar obligations
106
144
Factoring
—
21
Subtotal
5,661
5,752
Cash and cash equivalents
1,617
2,455
Less trapped cash
287
325
Less accessible cash and cash equivalents
1,330
2,130
Adjusted net borrowings
4,331
3,622
Composition of adjusted net borrowings € in millions
Dec. 31, 2025
Dec. 31, 2024
Reserves
Reserves within shareholders’ equity are as follows:
─Capital reserve: primarily comprises the paid premium for the issuance of share capital as well as
expenses recognized for share-based payment for Executive Board members and third parties.
─Cumulative currency translation differences: comprises all foreign currency differences arising from the
translation of the financial statements of foreign operations.
─Hedging reserve: comprises the effective portion of the cumulative net change in the fair value of cash
flow hedges (intrinsic value for options and spot component for forward contracts) related to hedged
transactions that have not yet occurred, hedges of net investments in foreign subsidiaries, and the
effective portion of the cumulative net change in the fair value of the total return swap.
─Cost of hedging reserve – options: comprises the effective portion of the cumulative net change in the
fair value of cash flow hedges reflecting cost of hedging of options (time value and premium).
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─Cost of hedging reserve – forward contracts: comprises the effective portion of the cumulative net
change in the fair value of cash flow hedges reflecting cost of hedging of forward contracts (forward
component).
─Other reserves: comprises the remeasurements of defined benefit plans consisting of the cumulative net
change of actuarial gains or losses relating to the defined benefit obligations, the return on plan assets
(excluding interest income) and the asset ceiling effect, the remeasurement of the fair value of the equity
investments measured at fair value through other comprehensive income, expenses recognized for share
option plans, and effects from the acquisition of non-controlling interests, as well as reserves required by
law.
─Retained earnings: comprises both amounts that are required by the Articles of Association and voluntary
amounts that have been set aside by adidas. The reserve includes the unappropriated accumulated
profits less dividends paid, and consideration paid for the repurchase of adidas AG shares exceeding the
nominal value. In addition, the item includes the effects of the employee stock purchase plan and the
transition effects of the implementation of new IFRS Accounting Standards.
The capital reserve includes restricted capital in an amount of € 4 million (2024: € 4 million). Furthermore,
other reserves include additional restricted capital in an amount of € 201 million (2024: €176 million).
Distributable profits and dividends
Profits distributable to shareholders are determined by reference to the retained earnings of adidas AG and
calculated under German commercial law.
Based on the resolution of the 2025 Annual General Meeting, the dividend for 2024 was € 2.00 per share
(total amount: approx. € 357 million).
The Executive Board of adidas AG will propose to use retained earnings of adidas AG in an amount of
€ 1,022 million as reported in the 2025 financial statements of adidas AG for a dividend payment of € 2.80
per share and to carry forward the subsequent remaining amount.
As at February 19, 2026, 177,348,936 dividend-entitled shares exist. This would result in a dividend
payment of € 497 million.
26
Share-based payment
Equity-settled share-based payment transactions with employees
In 2016, adidas announced the introduction of an open-ended employee stock purchase plan (the ‘plan’).
The plan is operated on a quarterly basis, with each calendar quarter referred to as an ‘investment quarter.’
The plan enables employees to purchase adidas AG shares with a 15% discount (‘investment shares’) and
to benefit from free matching shares. Currently, eligible employees of adidas AG and 17 other subsidiaries
can participate in the plan. Up to two weeks before the start of an investment quarter, each eligible
employee can enroll for the plan. The company accepts enrollment requests on the first day of the relevant
investment quarter. This is the grant date for the investment and matching shares. The fair value at the
vesting date is equivalent to the fair value of the granted equity instruments at this date. The employees
invest an amount up to 10% of their gross base salary per quarter in the plan. A few days after the end of
the investment quarter, the shares are purchased on the market at fair market value and transferred to the
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employees. Thereby the amount invested during the quarter plus the top-up from adidas is used. These
shares can be sold at any time by the employee. If the shares are held for a period of one year after the
last day of an investment quarter, employees will receive, as a one-off, free matching shares (one matching
share for every six adidas AG shares acquired). This plan currently constitutes an equity-settled share-based
payment for both elements. For the component of the matching shares relating to the specific period of
service, an appropriate discount is taken into account. The effects are presented in the following table:
Grant date
Oct. 1, 2024
Oct. 1, 2024
Jan. 2, 2025
Apr. 1, 2025
Jul. 1, 2025
Oct. 1, 2025
Share price at grant date (in €)
232.80
232.80
236.70
223.30
206.20
186.55
Share price at December 31 (in €)
236.80
169.05
Number of granted investment shares based
on the share price as at December 31
25,507
36,323
Number of actually purchased investment
shares
—
26,644
37,081
31,650
37,094
—
Outstanding granted matching shares based
on the share price as at December 31 or
actually purchased investment shares
4,251
—
6,180
5,275
6,182
6,054
Average remaining vesting period in months
as at December 31 (in months)
12
—
3
6
9
12
Equity-settled share-based payment transactions with employees
As at
December
31, 2024
As at December 31, 2025
29th
investment
quarter
29th
investment
quarter
30th
investment
quarter
31st
investment
quarter
32nd
investment
quarter
33rd
investment
quarter
The number of forfeited matching shares during the period amounted to 3,027 (2024: 1,375).
In 2025, the total expenses recognized relating to investment shares amounted to € 4.3 million (2024:
€ 3.5 million).
Expenses recognized relating to vesting of matching shares amounted to € 3.3 million in 2025 (2024:
€ 3.1 million).
As at December 31, 2025, a total amount of € 6.1 million (2024: € 6 million) was invested by the
participants in the stock purchase plan and was not yet transferred into shares by the end of December.
Therefore, this amount has been included in ‘Other current financial liabilities.’
►SEE NOTE 17
Further information about the purchase of shares for the employee stock purchase plan is provided in these
Notes.
►SEE NOTE 25
Equity-settled share-based payment transactions with third parties
In 2023, adidas entered into a promotion and advertising contract that includes a share-based payment
transaction with third parties. The contract has a term of up to five years. The agreement grants a transfer
of shares, which correspond up to a value of US $ 26 million. In 2025, shares in a value of US $ 15 million
were transferred.
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The expenses for shares are recognized over the vesting period of five years. The expense amounts to
€ 6 million in 2025 (2024: € 7 million).
Equity-settled share-based payment for Executive Board members
The ‘Long-Term-Incentive-Plan’ (‘LTIP’) pursues the goal of aligning the long-term performance-based
variable remuneration of the Executive Board with the performance of the company and thus with the
interests of the shareholders.
Long-Term-Incentive-Plan until 2023
Until 2023 it consists of annual tranches, each with a term of five years. Each of the annual tranches
consists of a performance year and a subsequent four-year holding period. For this LTIP, the Supervisory
Board has set financial and ESG-related performance criteria for each of the performance years.
As of December 31, 2025, the total number of adidas AG shares acquired since 2021 until 2023 as part of
the variable performance-based compensation and subject to a holding period amounts to 19,573 no-par-
value shares (2024: 55,208 no-par-value shares acquired since 2020). The number of adidas AG shares
acquired by the members of the Executive Board is shown below:
Grant amount
7,599,000
—
Payout amount
3,961,806
—
Purchase price
202.40
—
Number of purchased shares
19,573
—
End of lock-up period
Dec. 31, 2027
—
LTIP Bonus: Acquisition of shares in the context of the long-term variable compensation in €
LTIP tranche
2023
2022
Long-Term-Incentive-Plan 2024
As part of the compensation system applicable from 2024, the Supervisory Board has introduced a revised
Long-Term-Incentive-Plan (LTIP) for the long-term performance-related variable compensation. This LTIP
consists of annual tranches with a term of four years each. The performance period is three years. The LTIP
Bonus granted has to be fully invested into the acquisition of adidas AG shares after deducting applicable
taxes and social security contributions. The shares acquired are subject to a one-year lock-up period. The
LTIP payout amount is considered earned only after expiry of the lock-up period and only then can the
Executive Board members dispose of the shares. The performance criteria determined in the LTIP comprise
operating profit, relative shareholder return compared to the DAX, and two ESG targets.
Share-based payment arrangements, particularly those linked to the Total Shareholder Return (TSR) metric,
are recognized with a fair value. This model ensures that awards under the LTIP made to employees are
valued accurately at the grant date and expensed over the period they vest.
To assess the fair value of share plans tied to the TSR, the company used a Monte Carlo Simulation model.
The TSR metric considers both share price appreciation and dividends paid, providing a detailed measure of
the returns delivered to adidas shareholders relative to the DAX.
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Key parameters in the Monte Carlo Simulation are:
─The expected volatility of the adidas AG share. Historical share price data is analyzed to estimate the
fluctuation of the share price over the vesting period.
─The risk-free interest rate, which is usually determined by yields on government bonds with a term that
aligns with the vesting period of the LTIP.
─The anticipated dividends that shareholders may receive during the vesting period are factored into the
simulation, which influences the total returns calculated in the TSR metric.
─The duration over which the TSR is measured.
A substantial number of simulation scenarios for TSR are generated to capture a wider range of potential
outcomes for future share price movements. The expected value derived from the Monte Carlo model is a
combination of TSR simulations and expectations on the other non-market KPIs which are regularly updated
in their entirety.
adidas
DAX
adidas
DAX
Expected term
3 years
3 years
3 years
3 years
Share price/DAX price index
227.50
19,558.88
179.72
15,778.70
Expected volatility
36.2%
17.0%
36.6%
17.5%
Risk-free rate
2.0%
2.0%
2.4%
2.4%
Number of RSUs based on the average
share price 60 days before grant date
29,159
n/a
40,237
n/a
Assumptions for valuation at grant
LTIP-Tranche 2025
LTIP-Tranche 2024
The expected value of adidas LTIP as at December 31, 2025 amounts for the 2024 LTIP tranche to 120.3%
and for the 2025 LTIP tranche to 100.3%.
The annual LTIP tranche (‘Grant Amount’) is paid to the Executive Board members after the end of the
performance period and after approval of the consolidated financial statements and is to be fully invested
by the Executive Board members in the acquisition of adidas AG shares. Only after the end of each holding
period can the Executive Board members dispose of the shares.
Cash-settled share-based payment transactions with employees
Long-Term-Incentive-Plan 2017 to 2024
In 2017, adidas implemented a Long-Term-Incentive-Plan (LTIP), which is a share-based remuneration
scheme with cash settlement. ‘RSUs’ (‘Restricted Stock Units’) are granted on the condition that the
beneficiary is employed for three or four years by adidas AG or one of its subsidiaries in a position where
they are not under notice during that period. In exceptional cases, RSUs can be granted with a minimum
term of employment of one and two years.
The total value of the cash remuneration payable to senior management is recalculated on each reporting
date and on the settlement date, based on the fair value of the RSUs, and recognized through an
appropriate adjustment in the provision as personnel expenses that are spread over the period of service of
the beneficiary. Furthermore, social security contributions are considered in the calculation of the fair value,
if appropriate for the respective country regulations and the seniority of the participants. All changes to the
subsequent measurement of this provision are reported under personnel expenses.
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Once a year, one tranche with a three-year term and another with a four-year term are issued. The number
of RSUs granted depends on the seniority of the beneficiaries. In addition, for the four-year plan, the
number of RSUs also depends on the achievement of a financial and ESG-related target. In addition, in
2023 and in 2024, the option to issue one additional tranche with a two-year maturity was exercised.
The value of one RSU is the average price of the adidas AG share as quoted for the first 20 stock exchange
trading days in January of the respective financial year.
New Long-Term Incentive Plan 2025
In 2025, adidas introduced a revised Long-Term-Incentive Plan (LTIP) that represents a share-based
compensation with cash settlement. ‘RSUs’ (‘Restricted Stock Units’) are granted on the condition that the
beneficiary is employed for three years by adidas AG or one of its subsidiaries in a position where they are
not under notice during that period. This minimum period of employment pertains to the calendar year in
which the RSUs are granted and the two subsequent calendar years. This LTIP consists of annual tranches
with a term of three years each and an annual allocation of virtual RSUs. The performance period is three
years. The performance criteria determined in the LTIP 2025 comprise operating profit, relative shareholder
return compared to the DAX, and two ESG targets. In exceptional cases, RSUs can be granted with a
minimum term of employment of one and two years.
Share-based payment arrangements, particularly those linked to the Total Shareholder Return (TSR) metric,
are measured at fair value of the liability. This model ensures that awards under the LTIP made to
employees are valued accurately at the reporting date and expensed over the period they vest.
To assess the fair value of share plans tied to the TSR, the company used a Monte Carlo Simulation model.
The details of this simulation model are described in this notes section under ‘Equity-settled share-based
payments to Executive Board Members.’
The total value of the cash remuneration payable to senior management is recalculated on each reporting
date and on the settlement date, based on the fair value of the RSUs, and recognized through an
appropriate adjustment in the provision as personnel expenses that are spread over the period of service of
the beneficiary. Furthermore, social security contributions are considered in the calculation of the fair value,
if appropriate for the respective country regulations and the seniority of the participants. All changes to the
subsequent measurement of this provision are reported under personnel expenses.
An annual LTIP tranche with a three-year term is issued. The number of RSUs granted depends on the
seniority of the beneficiaries. In addition, in 2025, the option to issue two additional tranches with a two-
year and a one-year maturity was exercised.
The value of one RSU is the average price of the adidas AG share as quoted for the 60 stock exchange
trading days prior to the start of the performance period in January of each respective financial year.
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The following table shows all outstanding RSUs from share-based compensation to employees:
Cash-settled share-based payment transactions with employees
Number of outstanding RSUs
As at
December 31, 2025
As at
December 31, 2024
Plan year
2021 – 4-year tranche
—
147,298
2022 – 4-year tranche
51,929
63,456
2022 – 3-year tranche
—
182,481
2023 – 4-year tranche
196,090
238,711
2023 – 3-year tranche
83,686
100,857
2023 – 2-year tranche
—
10,992
2024 – 4-year tranche
236,159
290,382
2024 – 3-year tranche
257,455
293,906
2024 – 2-year tranche
1,291
1,398
2025 – 4-year tranche
189,621
—
2025 – 3-year tranche
201,131
—
2025 – 2-year tranche
392
—
2025 – 1-year tranche
1,442
—
Total number of outstanding RSUs
1,219,196
1,329,481
The fair value is based on the closing price of the adidas AG share on the respective balance sheet date,
adjusted for future dividend payments.
In 2025, this resulted in an expense of € 70 million (2024: € 80 million). The corresponding provision
amounted to € 108 million (2024: € 163 million).
27
Non-controlling interests
This line item within equity comprises the non-controlling interests in subsidiaries that are not directly or
indirectly attributable to adidas AG.
Non-controlling interests are assigned to one subsidiary.
Dec. 31, 2025
Dec. 31, 2024
Agron, Inc.
USA
100%
100%
Subsidiaries with non-controlling interests
Legal entity name
Principal place
of business
Ownership interests held by non-
controlling interests
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The following table presents the main financial information of the subsidiary with non-controlling interests
before elimination.
Net sales
439
504
Net income
45
68
Net income attributable to non-controlling interests
45
68
Other comprehensive income
(45)
24
Total comprehensive income
(1)
92
Total comprehensive income attributable to non-controlling interests
(1)
92
Current assets
344
377
Non-current assets
95
109
Current liabilities
(67)
(90)
Non-current liabilities
(23)
(4)
Net assets
349
392
Net assets attributable to non-controlling interests according to the
consolidated statement of financial position
349
392
Net cash generated from operating activities
47
129
Net cash used in investing activities
3
(34)
Net cash used in financing activities
(47)
(40)
Net increase of cash and cash equivalents
3
55
Dividends paid to non-controlling interests during the year1
42
40
1 Included in net cash used in financing activities.
Financial information of the subsidiary with non-controlling interests € in millions
Non-controlling interests
Dec. 31, 2025
Dec. 31, 2024
Total
Total
28
Financial instruments
Additional information on financial instruments
Financial assets
Cash and cash
equivalents
Cash and cash
equivalents
Amortized cost
691
—
—
—
959
—
—
—
Cash equivalents
Fair value
through profit
or loss
926
926
—
926
—
1,496 1,496
—
1,496
—
Accounts receivable
Amortized cost
2,634
—
—
—
2,413
—
—
—
Carrying amounts of financial instruments and their fair values including hierarchy according to IFRS 13 € in millions
Category
December 31, 2025
December 31, 2024
Carrying
amount
Fair
value
Level 1
Level 2
Level 3
Carrying
amount
Fair
value
Level 1
Level 2
Level 3
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Other current financial
assets
Derivatives used in
hedge accounting
n.a.
86
86
—
86
—
213
213
—
213
—
Derivatives not used
in hedge accounting
Fair value
through profit
or loss
26
26
—
26
—
26
26
—
26
—
Earn-out
components
Fair value
through profit
or loss
75
75
—
—
75
58
58
—
—
58
Earn-out
components
Amortized cost
—
—
—
—
99
—
—
—
Other investments
n.a.
23
23
—
23
—
75
75
—
75
—
Other financial
assets
Amortized cost
308
—
—
—
479
—
—
—
Long-term financial
assets
Other equity
investments
Fair value
through profit
or loss
93
93
—
—
93
94
94
—
—
94
Other equity
investments
Fair value
through other
comprehensive
income
26
26
0
—
25
83
83
0
—
83
Other investments
Fair value
through profit
or loss
50
50
—
50
—
50
50
—
50
—
Other investments
n.a.
184
184
—
184
—
113
113
—
113
—
Other non-current
financial assets
Derivatives used in
hedge accounting
n.a.
4
4
—
4
—
13
13
—
13
—
Earn-out
components
Fair value
through profit
or loss
87
87
—
—
87
97
97
—
—
97
Other financial
investments
Fair value
through profit
or loss
30
30
30
—
—
—
—
—
—
—
Other financial
assets
Amortized cost
96
—
—
—
123
—
—
—
Financial assets per
level
30
1,299
281
0
1,986
331
Financial liabilities
Short-term borrowings
Bank borrowings
Amortized cost
246
—
—
—
70
—
—
—
Eurobond
Amortized cost
400
400
400
—
—
499
502
502
—
—
Accounts payable
Amortized cost
2,910
—
—
—
3,096
—
—
—
Current accrued liabilities
Amortized cost
825
—
—
—
1,019
—
—
—
Current accrued liabilities
for customer discounts
Amortized cost
685
—
—
—
667
—
—
—
Other current financial
liabilities
Derivatives used in
hedge accounting
n.a.
248
248
—
248
—
62
62
—
62
—
Carrying amounts of financial instruments and their fair values including hierarchy according to IFRS 13 € in millions
Category
December 31, 2025
December 31, 2024
Carrying
amount
Fair
value
Level 1
Level 2
Level 3
Carrying
amount
Fair
value
Level 1
Level 2
Level 3
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Derivatives not
used in hedge
accounting
Fair value
through profit
or loss
24
24
—
24
—
15
15
—
15
—
Other financial
liabilities
Amortized cost
63
—
—
—
114
—
—
—
Current lease liabilities
n.a.
603
—
—
—
607
—
—
—
Long-term borrowings
Bank borrowings
Amortized cost
7
7
—
7
—
26
26
—
26
—
Eurobond
Amortized cost
1,990 1,850 1,850
—
—
1,889 1,742 1,742
—
—
Other non-current
financial liabilities
Derivatives used in
hedge accounting
n.a.
7
7
—
7
—
1
1
—
1
—
Non-current lease
liabilities
n.a.
2,310
—
—
—
2,495
—
—
—
Financial liabilities per
level
2,249
285
—
2,243
104
—
Thereof: aggregated by
category according to
IFRS 9
Financial assets at fair
value through profit or
loss (FVTPL)
1,288
1,820
Financial assets at fair
value through other
comprehensive income
(FVOCI)
26
83
Thereof: equity
investments
(without recycling to
profit and loss)
26
83
Financial assets at
amortized cost (AC)
3,730
4,073
Financial liabilities at fair
value through profit or
loss (FVTPL)
24
15
Financial liabilities at
amortized cost (AC)
7,125
7,381
Level 1 is based on quoted prices in active markets for identical assets or liabilities.
Level 2 is based on inputs other than quoted prices included within Level 1 that are observable for the assets or liabilities, either directly (i.e., as prices) or indirectly (i.e., derived from prices).
Level 3 is based on inputs for the assets or liabilities that are not based on observable market data (unobservable inputs).
Carrying amounts of financial instruments and their fair values including hierarchy according to IFRS 13 € in millions
Category
December 31, 2025
December 31, 2024
Carrying
amount
Fair
value
Level 1
Level 2
Level 3
Carrying
amount
Fair
value
Level 1
Level 2
Level 3
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Fair value
Jan. 1,
2025
Additions
Disposals
Gains
Losses
Gains
Losses
Transfers
Currency
translation
Fair value
Dec. 31,
2025
Investments in other
equity instruments
held for trading
(FAHfT)
91
—
—
—
—
2
—
—
—
93
Investments in other
equity instruments
(FVTPL)
2
—
—
(0)
—
—
(2)
—
—
—
Investments in other
equity instruments
(FVOCI)
83
2
—
—
—
0
(60)
—
—
25
Earn-out components
(assets)
155
—
—
—
—
7
—
—
—
162
Reconciliation of fair value hierarchy Level 3 in 2025 € in millions
Realized
Unrealized
Realized
Unrealized
Fair value
Jan. 1,
2024
Additions
Disposals
Gains
Losses
Gains
Losses
Transfers
Currency
translation
Fair value
Dec. 31,
2024
Investments in other
equity instruments
held for trading
(FAHfT)
89
—
—
—
—
3
—
—
—
91
Investments in other
equity instruments
(FVTPL)
2
—
—
—
—
—
—
—
—
2
Investments in other
equity instruments
(FVOCI)
82
—
(0)
—
—
1
—
—
—
83
Earn-out components
(assets)
301
—
(100)
—
—
53
—
(99)
—
155
Reconciliation of fair value hierarchy Level 3 in 2024 € in millions
Due to the short-term maturities of cash and cash equivalents, short-term financial assets, and accounts
receivable and payable, as well as other current financial receivables and payables, their respective fair
values equal their carrying amount.
The fair values of non-current financial assets and liabilities are estimated by discounting expected future
cash flows using current interest rates for debt of similar terms and remaining maturities and adjusted by a
company-specific credit risk premium or measured at market prices.
Fair values of long-term financial assets are based on quoted market prices in an active market or are
calculated as present values of expected future cash flows.
adidas designated certain investments as equity securities at fair value through other comprehensive
income (equity), because the company intends to hold those investments for the long term in order to gain
insights into innovative production technologies and trends. The designation of certain equity instruments
at fair value through other comprehensive income (equity) is based on a strategic management decision.
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371
In accordance with IFRS 13, the following tables show the valuation methods used in measuring Level 1,
Level 2, and Level 3 fair values, as well as the significant unobservable inputs used. No reclassifications
between hierarchy levels were made in 2025. A review of the hierarchy levels is carried out regularly by
adidas.
Eurobond
The fair value is based on the market price of the
eurobond on the balance sheet date.
Not applicable
Amortized cost
Other equity
investments
The fair value is based on the market price of the
investment on the balance sheet date.
Not applicable
Fair value through
other
comprehensive
income
Other financial
investments
The fair value is based on the market price of the
investment on the balance sheet date.
Not applicable
Fair value through
profit and loss
Financial instruments Level 1 measured at fair value
Type
Valuation method
Significant
unobservable
inputs
Category
Cash equivalents
and
short-term financial
assets
(money market
funds)
The discounted cash flow method is applied, which
considers the present value of expected payments,
discounted using a risk-adjusted discount rate.
Due to their short-term maturities, it is assumed
that their respective fair value is equal to the
notional amount.
Not applicable
Fair value through
profit or loss
Long-term financial
assets
(investment
securities)
The fair value is based on the market price of the
assets on the balance sheet date.
Not applicable
Fair value through
profit or loss
Forward exchange
contracts
adidas applies the par method (forward NPV) for all
currency pairs to calculate the fair value, implying
actively traded forward curves.
Not applicable
n.a./fair value
through profit or
loss
Currency options
adidas applies among others the Garman-
Kohlhagen model, which is an extended version of
the Black-Scholes model.
Not applicable
n.a./fair value
through profit or
loss
Total return swap
(for own shares)
The fair value is based on the market price of the
adidas AG share on the balance sheet date, minus
accrued interest.
Not applicable
n.a./fair value
through profit or
loss
Financial instruments Level 2 measured at fair value
Type
Valuation method
Significant
unobservable
inputs
Category
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Investment in
FC Bayern
München AG
This equity security does not have a quoted
market price in an active market. Existing
contractual arrangements (based on the
externally observable dividend policy of FC
Bayern München AG) are used in order to
calculate the fair value on the balance sheet
date. These dividends are recognized in other
financial income.
See column
‘Valuation
method’
Fair value
through profit
or loss
Earn-out
components
(assets)
The valuation is based on the DCF Method,
considering Monte Carlo Simulations to
simulate future gross royalty income. The
derived earn-out payments are discounted
using a risk-adjusted discount rate. The fair
value adjustment is recognized in discontinued
operations.
Risk-adjusted
maturity-
specific
discount rate
(9.0% –
9.3%), gross
royalty
income
The estimated fair value would
increase by 17% (decrease by 17%) if
gross royalty income were 10% higher
(10% lower).
The estimated fair value would
increase by 2% (decrease by 1%) if
the risk-adjusted discount rate was
1pp lower (1pp higher).
Fair value
through profit
or loss
Investments in
other equity
instruments
(fair value
through profit
or loss)
The significant inputs (financing rounds) used
to measure fair value include one or more
events where objective evidence of any
changes was identified, considering
expectations regarding future business
development. The fair value adjustment is
recognized in other financial result.
See column
‘Valuation
method’
Fair value
through profit
or loss
Investments in
other equity
instruments
(fair value
through other
comprehensive
income)
The option to measure equity instruments at
fair value through other comprehensive income
upon implementation of IFRS 9 has been
exercised. The significant inputs (financing
rounds) used to measure fair value include
one or more events where objective evidence
of any changes was identified, considering
expectations regarding future business
development. The fair value adjustment is
recognized in other reserves.
See column
‘Valuation
method’
Fair value
through other
comprehensive
income
Financial instruments Level 3 measured at fair value
Type
Valuation method
Significant
unobservable
inputs
Inter-relationship between significant
unobservable inputs and fair value
measurement
Category
Financial assets classified at amortized cost (AC)
(7)
13
Financial assets at fair value through profit or loss (FVTPL)
40
101
Thereof: designated as such upon initial recognition
—
—
Equity instruments at fair value through profit or loss (FVTPL)
(0)
3
Thereof: designated as such upon initial recognition
—
—
Equity instruments at fair value through other comprehensive income (FVOCI)
—
—
Financial liabilities at amortized cost (AC)
11
6
Financial liabilities at fair value through profit or loss (FVTPL)
(22)
0
Thereof: designated as such upon initial recognition
—
—
Net gains/(losses) on financial instruments recognized in the consolidated income statement € in millions
Year ending
Dec. 31, 2025
Year ending
Dec. 31, 2024
Net gains or losses on financial assets measured at amortized cost comprise mainly impairment losses
and reversals.
Net gains or losses on financial assets or financial liabilities classified as fair value through profit or loss
include the effects from fair value measurements of the derivatives that are not part of a hedging
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relationship, and changes in the fair value of other financial instruments as well as interest expenses. At
the time of realization of financial instruments classified at fair value through profit or loss, € 169 million
was recognized as an expense in 2025.
Net gains or losses on equity instruments at fair value through profit or loss mainly include fair value
adjustments based on the respective valuation method.
►SEE TABLE ‘FINANCIAL INSTRUMENTS LEVEL 3 MEASURED AT FAIR VALUE’
During 2025, no dividends regarding equity instruments at fair value through other comprehensive income
were recognized.
Net gains or losses on financial liabilities measured at amortized cost include effects from early settlement
and reversals of accrued liabilities and refund liabilities.
Forward exchange contracts
11,156
9,734
Currency options
1,397
853
Total
12,552
10,587
Notional amounts of all outstanding currency hedging instruments € in millions
Dec. 31, 2025
Dec. 31, 2024
Forward exchange contracts
104
(221)
229
(78)
Currency options
9
(56)
23
(1)
Total
113
(277)
252
(79)
Fair values € in millions
Dec. 31, 2025
Dec. 31, 2024
Positive
fair value
Negative
fair value
Positive
fair value
Negative
fair value
Forward exchange contracts
6,256
4,761
Currency options
1,263
690
Total
7,519
5,451
Notional amounts of outstanding US dollar hedging instruments € in millions
Dec. 31, 2025
Dec. 31, 2024
Financial risks
Currency risks
Currency risks, to which adidas is particularly exposed, are a direct result of multi-currency cash flows
within the company. The vast majority of the transactional risk arises from product sourcing in US dollars,
while sales are typically denominated in the functional currency of the respective companies. The
currencies in which these transactional risks are mainly denominated are the US dollar, British pound,
Japanese yen, and Korean won.
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As governed by the company’s Treasury Policy, adidas has established a hedging system on a rolling basis
up to 24 months in advance, under which the vast majority of the anticipated seasonal hedging volume is
secured approximately six months prior to the start of a season. In rare instances, hedges are contracted
beyond the 24-month horizon.
adidas uses a combination of different hedging instruments, such as forward exchange contracts, currency
options, and currency swaps or combinations of different instruments, to protect itself against unfavorable
currency movements. These contracts are generally designated as cash flow hedges.
Furthermore, translation impacts from the conversion of non-euro-denominated results into the company’s
functional currency, the euro, might lead to a material negative impact on the company’s financial
performance.
Further information about the accounting and hedge accounting treatment is included in these Notes.
►SEE NOTE 02
Exposures are presented in the following table:
As at December 31, 2025
Exposure from firm commitments and
forecast transactions
(6,553)
877
514
428
Balance sheet exposure including
intercompany exposure
(326)
(64)
5
57
Total gross exposure
(6,879)
813
519
485
Hedged with currency options
1,263
—
(134)
—
Hedged with forward contracts
4,243
(532)
(123)
(258)
Net exposure
(1,373)
281
262
227
As at December 31, 2024
—
—
—
Exposure from firm commitments and
forecast transactions
(6,676)
1,095
507
450
Balance sheet exposure including
intercompany exposure
(83)
(7)
7
59
Total gross exposure
(6,759)
1,088
514
509
Hedged with currency options
690
—
(163)
—
Hedged with forward contracts
3,259
(853)
(204)
(304)
Net exposure
(2,810)
235
147
205
Exposure to foreign exchange risk based on notional amounts € in millions
USD
GBP
JPY
KRW
The exposure from firm commitments and forecast transactions was calculated on a one-year basis.
In line with IFRS 7 requirements, the company has calculated the impact on net income and shareholders’
equity based on changes in the most important currency exchange rates. The calculated impacts mainly
result from changes in the fair value of the hedging instruments. The analysis does not include effects that
arise from the translation of the company’s foreign entities’ financial statements into the company’s
reporting currency, the euro. The sensitivity analysis is based on the net balance sheet exposure, including
intercompany balances from monetary assets and liabilities denominated in foreign currencies. Moreover,
all outstanding currency derivatives were re-evaluated using hypothetical foreign exchange rates to
determine the effects on net income and equity.
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As at December 31, 2025
EUR +10%
EUR +10%
EUR +10%
EUR +10%
Equity
(395)
46
19
20
Net income
(4)
5
—
(3)
EUR -10%
EUR -10%
EUR -10%
EUR -10%
Equity
484
(57)
(21)
(24)
Net income
5
(6)
1
10
As at December 31, 2024
EUR +10%
EUR +10%
EUR +10%
EUR +10%
Equity
(280)
74
29
23
Net income
(8)
—
—
(4)
EUR -10%
EUR -10%
EUR -10%
EUR -10%
Equity
355
(91)
(34)
(29)
Net income
10
(1)
1
6
Sensitivity analysis of foreign exchange rate changes € in millions
USD
GBP
JPY
KRW
Based on this analysis, a 10% increase in the euro versus the US dollar at December 31, 2025, would
have led to a € 4 million decrease in net income.
The more negative market values of the US dollar hedges would have decreased shareholders’ equity by
€ 395 million. A 10% weaker euro at December 31, 2025, would have led to a € 5 million increase in net
income. Shareholders’ equity would have increased by € 484 million. The impacts of fluctuations of the
euro against the British pound, the Japanese yen, and the Korean won on net income and shareholders’
equity are also included in accordance with IFRS Accounting Standards requirements.
However, many other financial and operational variables that could potentially reduce the effect of currency
fluctuations are excluded from the analysis. For instance:
─Interest rates, commodity prices, and all other exchange rates are assumed constant.
─Exchange rates are assumed at a year-end value instead of the more relevant sales-weighted average
figure, which the company utilizes internally to better reflect both the seasonality of its business and
intra-year currency fluctuations.
─The underlying forecast cash flow exposure (which the hedge instrument mainly relates to) is not required
to be revalued in this analysis.
─Operational aspects, such as potential discounts for key accounts, which have high transparency
regarding the impacts of currency on our sourcing activities (due to their own private label sourcing
efforts), are also excluded from this analysis.
─The credit risk is not considered as part of this analysis.
The company also largely hedges balance sheet risks. Due to its strong global position, adidas is able to
partly minimize the currency risk by utilizing natural hedges. The company’s gross US dollar cash flow
exposure calculated for 2025 was around € 8.7 billion at year-end 2025, which was hedged using forward
exchange contracts, currency options, currency swaps, or combinations of different instruments.
Credit risks
A credit risk arises if a customer or other counterparty to a financial instrument fails to meet its contractual
obligations. adidas is exposed to credit risks from its operating activities and from certain financing
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activities. Credit risks arise principally from accounts receivable and, to a lesser extent, from other third-
party contractual financial obligations such as other financial assets, short-term bank deposits, and
derivative financial instruments. Without taking into account any collateral or other credit enhancements,
the carrying amount of financial assets and accounts receivable represents the maximum exposure to
credit risk.
At the end of 2025, there was no relevant concentration of credit risk by type of customer or geography.
The company’s credit risk exposure is mainly influenced by individual customer characteristics. Under the
company’s credit policy, new customers are analyzed for creditworthiness before standard payment and
delivery terms and conditions are offered. Tolerance limits for accounts receivable are also established for
each customer. Both creditworthiness and accounts receivable limits are monitored on an ongoing basis.
Customers that fail to meet the company’s minimum creditworthiness are, in general, allowed to purchase
products only on a prepayment basis.
Other activities to mitigate credit risks include retention of title clauses as well as, on a selective basis,
credit insurance, the sale of accounts receivable without recourse, and bank guarantees. Further
quantitative information on the extent to which credit enhancements mitigate the credit risk of accounts
receivable is included in these Notes.
►SEE NOTE 05
At the end of 2025, no customer accounted for more than 10% of accounts receivable.
The Treasury department arranges currency, commodity, interest rate, and equity hedges, and invests cash
with major banks of a high credit standing throughout the world. adidas subsidiaries are authorized to work
with banks rated BBB+ or higher. Only in exceptional cases are subsidiaries authorized to work with banks
rated lower than BBB+. To limit risk in these cases, restrictions are clearly stipulated, such as maximum
cash deposit levels. In addition, the credit default swap premiums of the company’s partner banks are
monitored on a monthly basis. In the event that the defined threshold is exceeded, credit balances are
shifted to banks compliant with the limit.
adidas furthermore believes that the risk concentration is limited due to the broad distribution of the
investment business of the company with a high number of globally operating banks. At December 31,
2025, no bank accounted for more than 10% of the investments of adidas. Including subsidiaries’ short-
term deposits in local banks, the average concentration was 1%. This leads to a maximum exposure of
€ 99 million in the event of default of any single bank. The investment exposure was further diversified by
investing into AAA-rated money market funds.
In addition, in 2025, adidas held derivatives of foreign exchange with a positive fair market value in the
amount of € 113 million. The maximum exposure to any single bank resulting from these assets amounted
to € 33 million and the average concentration was 9%.
In accordance with IFRS 7, the following table includes further information about set-off possibilities of
financial assets and liabilities. The majority of agreements between financial institutions and adidas include
a mutual right to set off. However, these agreements do not meet the criteria for offsetting in the statement
of financial position, because the right to set off is enforceable only in the event of counterparty defaults.
The table below shows the financial instruments which qualify for set-off in the statement of financial
position, as well as the gross amounts of recognized financial assets and liabilities, as they do not meet
the criteria for offsetting in the financial statement, even though there is a mutual right to set off between
the counterparties in place.
The carrying amounts of recognized financial instruments, which are subject to the agreements mentioned
here, are also presented in the following table:
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Assets
Derivatives
Other
investments
Derivatives
Other
investments
Gross amounts of recognized financial
assets
115
206
258
188
Financial instruments which qualify for
set-off in the statement of financial
position
(2)
—
(5)
—
Net amounts of financial assets
presented in the statement of financial
position
113
206
252
188
Set-off possible due to master
agreements
(114)
—
(75)
—
Total net amount of financial assets
(1)
206
178
188
Liabilities
Gross amounts of recognized financial
liabilities
(280)
—
(79)
Financial instruments which qualify for
set-off in the statement of financial
position
3
—
1
—
Net amounts of financial liabilities
presented in the statement of financial
position
(277)
—
(78)
—
Set-off possible due to master
agreements
114
—
75
—
Total net amount of financial liabilities
(163)
—
(4)
—
Set-off possibilities of financial assets and liabilities € in millions
2025
2024
Interest rate risks
Changes in global market interest rates affect future interest payments for variable-interest liabilities. As
adidas does not have material variable-interest liabilities, even a significant increase in interest rates
should have only slight adverse effects on the company’s profitability, liquidity, and financial position.
To reduce interest rate risks and maintain financial flexibility, a core tenet of the company’s financial
strategy is to continue to use surplus cash flow from operations to reduce short-term gross borrowings.
Beyond that, adidas may consider adequate hedging strategies through interest rate derivatives in order to
mitigate interest rate risks.
Share price risks
Share price risks arise due to the Long-Term Incentive Plan (LTIP), which is a share-based remuneration
scheme with cash settlement. In order to mitigate share price risks, it is company strategy to hedge against
share price fluctuations. Swaps are used to hedge the Long-Term Incentive Plan and are classified as cash
flow hedges.
In line with IFRS 7 requirements, adidas has calculated the impact on net income based on changes in the
company’s share price. A 10% increase in the adidas AG share price versus the closing share price at
December 31, 2025, would have led to an € 8 million increase in net income and a € 12 million increase in
shareholders’ equity, whereas a 10% decrease in the adidas AG share price versus closing share price at
December 31, 2025, would have led to an € 8 million decrease in net income and would have decreased
shareholders’ equity by € 12 million.
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Financing and liquidity risks
Liquidity risks arise from not having the necessary resources available to meet maturing liabilities with
regard to timing, volume, and currency structure. In addition, the company faces the risk of having to accept
unfavorable financing terms due to liquidity restraints. The Treasury department uses an efficient cash
management system in order to make best use of the operating cash flow. A twelve-month rolling cash flow
forecast on a monthly basis is established to manage liquidity risk. In line with the Financial Policy, adidas
aims to maintain a target leverage ratio and a target twelve months liquidity coverage. Committed and
uncommitted credit lines ensure further financial flexibility. Overall, adidas’ investment grade credit ratings
ensure an efficient access to capital markets.
At December 31, 2025, cash and cash equivalents together with marketable securities amounted to
€ 1.617 billion (2024: € 2.455 billion). Moreover, the company maintains € 3.599 billion (2024:
€ 3.656 billion) in bilateral credit lines, which are designed to ensure sufficient liquidity at all times.
Thereof, € 1.864 billion has been firmly committed since December 2023 as part of a syndicated credit
facility with our core banks.
Future cash outflows arising from financial liabilities that are recognized in the consolidated statement of
financial position are presented in the table.
This includes payments to settle obligations from borrowings as well as cash outflows from cash-settled
derivatives with negative market values. Financial liabilities that may be settled in advance without penalty
are included on the basis of the earliest date of potential repayment. Cash flows for variable-interest
liabilities are determined with reference to the conditions at the balance sheet date.
As at December 31, 2025
Bank borrowings
245
7
—
—
—
—
252
Eurobond1
442
33
533
533
517
515
2,573
Accounts payable
2,910
—
—
—
—
—
2,910
Other financial liabilities
63
—
—
—
—
—
63
Accrued liabilities2
825
—
—
—
—
—
825
Derivative financial
liabilities
7,112
643
—
—
—
—
7,755
Total
11,597
683
533
533
517
515
14,378
As at December 31, 2024
Bank borrowings
70
19
7
—
—
—
96
Eurobond1
543
428
19
519
519
518
2,546
Accounts payable
3,096
—
—
—
—
—
3,096
Other financial liabilities
114
—
—
—
—
—
114
Accrued liabilities2
1,019
—
—
—
—
—
1,019
Derivative financial
liabilities
2,711
163
—
—
—
—
2,874
Total
7,553
610
26
519
519
518
9,745
1 Including interest payments.
2 Accrued interest excluded.
Future cash outflows € in millions
Up to
1 year
Up to
2 years
Up to
3 years
Up to
4 years
Up to
5 years
More than
5 years
Total
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adidas ended the year 2025 with an adjusted net borrowings of € 4,331 million (2024: € 3,622 million).
Further information in the methodology for calculating adjusted net borrowings is provided in these Notes.
►SEE NOTE 25
Financial instruments for the hedging of foreign exchange and share price risk
As at December 31, 2025, adidas held the following instruments to hedge exposure to changes in foreign
currency and share price:
Foreign currency risk
Net exposure (€ in millions)
2,807
842
Forward exchange contracts
Average EUR/USD forward rate
1.133
1.192
Average EUR/GBP forward rate
0.868
0.893
Average EUR/JPY forward rate
156.837
179.116
Average EUR/KRW forward rate
1,566.388
1,720.973
Option exchange contracts
Average EUR/USD forward rate
1.106
1.172
Average EUR/GBP forward rate
—
—
Average EUR/JPY forward rate
181.704
—
Average EUR/KRW forward rate
—
—
Equity risk
Net exposure (€ in millions)
19
211
Total return swap
Average hedge rate
143.665
194.757
Average hedge rates
Maturity
As at December 31, 2025
short-term
long-term
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Foreign currency risk
Net exposure (€ in millions)
1,547
321
Forward exchange contracts
Average EUR/USD forward rate
1.104
1.113
Average EUR/GBP forward rate
0.863
0.850
Average EUR/JPY forward rate
156.492
154.522
Average EUR/KRW forward rate
1,459.582
—
Option exchange contracts
Average EUR/USD forward rate
1.081
1.050
Average EUR/GBP forward rate
—
—
Average EUR/JPY forward rate
165.994
—
Average EUR/KRW forward rate
—
—
Equity risk
Net exposure (€ in millions)
70
79
Total return swap
Average hedge rate
222.475
165.225
Average hedge rates
Maturity
As at December 31, 2024
short-term
long-term
The amounts at the reporting date relating to items designated as hedged items were as follows:
Foreign currency risk
Sales
(65)
65
(18)
—
Inventory purchases
244
(243)
40
—
Net foreign investment risk
—
(265)
—
—
Equity risk
Long-Term Incentive Plans
19
(19)
—
—
Designated hedged items as at December 31, 2025 € in millions
Change in value used for
calculating hedge
ineffectiveness
Hedging reserve
Cost of hedging reserve
Balances remaining in
the cash flow hedging
reserve from hedge
relationships for which
hedge accounting is no
longer applied
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Foreign currency risk
Sales
31
(31)
(3)
—
Inventory purchases
(180)
180
9
—
Net foreign investment risk
—
(265)
—
—
Equity risk
Long-Term Incentive Plans
(19)
19
—
—
Designated hedged items as at December 31, 2024 € in millions
Change in value used for
calculating hedge
ineffectiveness
Hedging reserve
Cost of hedging reserve
Balances remaining in
the cash flow hedging
reserve from hedge
relationships for which
hedge accounting is no
longer applied
The majority of the hedging reserves of € 265 million for net foreign investment risk contains hedges of
€ 181 million related to the Chinese renminbi and € 76 million to the Russian ruble, for which, by the end
of 2025, no outstanding hedging instruments were in place anymore.
The amounts relating to items designated as hedging instruments and hedged ineffectiveness were as
follows:
Foreign
exchange
contracts –
sales
3,071
65
Other
financial
assets/
liabilities
56
(42)
—
Cost of sales
—
—
28
18
Cost of sales
Foreign
exchange
contracts –
inventory
purchases
5,352
(252)
Other
financial
assets/
liabilities
(25)
(2)
(9) Cost of sales
(110)
47
4
—
Cost of sales
Foreign
exchange
contracts –
net foreign
investments
—
—
Other
financial
assets/
liabilities
—
—
—
Financial
result
—
—
—
—
Financial
result
Total return
swap – Long-
Term
Incentive
Plans
230
(19)
Other
financial
assets/long-
term
financial
assets
(36)
—
—
Financial
result
—
—
(1)
—
Other
operating
expenses
Designated hedge instruments € in millions
2025
During the period 2025
Nominal
amount
Change in
value used
for
calculating
hedge
ineffectivene
ss
Line item in
statement
of financial
position
where the
hedging
instrument
is included
Changes in
the value of
the hedging
instrument
recognized
in hedging
reserve
Changes in
the value of
the hedging
instrument
recognized
in cost of
hedging
reserve
Hedge
ineffective-
ness
recognized
in profit or
loss
Line item in
income
statement
which
includes
hedge
ineffective-
ness
Amount
from
hedging
reserve
transferred
to inventory
Amount
from cost of
hedging
reserve
transferred
to inventory
Amount
reclassified
from
hedging
reserve to
profit or
loss
Amount
reclassified
from cost of
hedging
reserve to
profit or
loss
Line item in
income
statement
affected by
the
reclassifica-
tion
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382
Designated hedge instruments € in millions
2024
During the period 2024
Nominal
amount
Carrying
amount of
hedging
reserve
Line item in
statement of
financial
position
where the
hedging
instrument
is included
Changes in
the value of
the hedging
instrument
recognized
in hedging
reserve
Changes in
the value of
the hedging
instrument
recognized
in cost of
hedging
reserve
Hedge
ineffective-
ness
recognized
in profit or
loss
Line item in
income
statement
which
includes
hedge
ineffective-
ness
Amount
from
hedging
reserve
transferred
to inventory
Amount
from cost of
hedging
reserve
transferred
to inventory
Amount
reclassified
from
hedging
reserve to
profit or
loss
Amount
reclassified
from cost of
hedging
reserve to
profit or
loss
Line item in
income
statement
affected by
the
reclassifica-
tion
Foreign
exchange
contracts –
sales
3,211
(31)
Other
financial
assets/
liabilities
31
(49)
—
Cost of sales
—
—
(4)
23
Cost of sales
Foreign
exchange
contracts –
inventory
purchases
3,883
180
Other
financial
assets/
liabilities
152
(21)
—
Cost of sales
(36)
65
1
(1) Cost of sales
Foreign
exchange
contracts –
net foreign
investments
—
—
Other
financial
assets/
liabilities
—
—
—
Financial
result
—
—
—
—
Financial
result
Total return
swap – Long-
Term
Incentive
Plans
149
19
Other
financial
assets/
liabilities
24
—
—
Financial
result
—
—
(5)
—
Other
operating
expenses
Some of the initial planned exposure for purchases and sales in foreign currencies ceased to exist, which
led to certain overhedge positions. In accordance with IFRS 9, hedge accounting was immediately
discontinued for hedging instruments that were no longer covered by a purchase or sales transaction, and,
at the time the over-hedged status was determined, the fair value was transferred from the hedging reserve
to the income statement. In 2025, a gain of € 2 million was reclassified into the cost of sales.
Furthermore, the effectiveness calculation carried out as part of hedge accounting for the structured
derivatives resulted in an ineffectiveness of € 9 million, which was recognized as an impairment in cost of
sales.
In addition, hedging instruments not designated as hedge accounting in accordance with IFRS 9 were
canceled to minimize the economic risk.
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383
The following table provides a reconciliation by risk category of components of equity and analysis of OCI
items, net of tax, resulting from cash flow hedge accounting:
Balance at January 1, 2025
(94)
6
Cash flow hedges
Changes in fair value:
Foreign currency risk – sales
88
6
Foreign currency risk – inventory purchases
(496)
71
Foreign currency risk – net foreign investment
—
—
Amount no longer recognized in OCI:
Foreign currency risk
137
(61)
Contracts during the year
(56)
(3)
Amount included in the cost of non-financial items:
Foreign currency risk – inventory purchases
—
—
Tax on movements of reserves during the year
78
—
Equity hedges
Changes in fair value:
(36)
—
Amount reclassified to profit or loss
(1)
—
Balance at December 31, 2025
(381)
19
Changes of reserves by risk category € in millions
Hedging reserve
Cost of hedging
reserve
Balance at January 1, 2024
(287)
(7)
Cash flow hedges
Changes in fair value:
Foreign currency risk – sales
(94)
41
Foreign currency risk – inventory purchases
220
38
Foreign currency risk – net foreign investment
—
—
Amount no longer recognized in OCI:
Foreign currency risk
48
(79)
Contracts during the year
—
13
Amount included in the cost of non-financial items:
Foreign currency risk – inventory purchases
—
—
Tax on movements on reserves during the year
33
1
Equity hedges
Changes in fair value:
24
—
Amount reclassified to profit or loss
(5)
—
Balance at December 31, 2024
(61)
7
Changes of reserves by risk category € in millions
Hedging reserve
Cost of hedging
reserve
In order to determine the fair values of derivatives that are not publicly traded, adidas uses generally
accepted quantitative financial models based on market conditions prevailing at the balance sheet date.
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384
Notes to the Consolidated Income Statement
29
Other operating income
Other operating income consists of the following:
Income from release of accrued liabilities and other provisions
14
124
Gains from disposal of fixed assets
2
30
Sundry income
25
20
Other operating income
41
174
Other operating income € in millions
Year ending
Dec. 31, 2025
Year ending
Dec. 31, 2024
The decline in income from release of accrued liabilities and other provisions is mainly attributable to the
absence of the prior year’s release of accruals of around € 100 million following the Yeezy settlement. In
2025, sundry income mainly contains income from insurance reimbursements.
30
Other operating expenses
Expenses are presented by function according to the ‘cost of sales method’ in the income statement with
the exception of impairment losses (net) on accounts receivable and contract assets, which are disclosed
in a separate line item as required by IFRS 9 ‘Financial Instruments.’
Other operating expenses presented by functions include marketing and point-of-sale expenses, distribution
and selling expenses, and general and administration expenses, as well as sundry expenses less any
income from government grants, if applicable.
Marketing and point-of-sale expenses consist of promotion and communication spending such as promotion
contracts, advertising, events, and other communication activities. However, they do not include marketing
overhead expenses, which are presented in distribution and selling expenses.
The distribution and selling expenses consist of sales force and sales administration costs, direct and
indirect supply chain costs, and marketing overhead expenses, as well as expenses for research and
development, which amounted to € 154 million in 2025 (2024: € 170 million).
General and administration expenses include the functions IT, Finance, Legal, Human Resources, and
Facilities and Services, as well as General Management.
Sundry expenses consist mainly of costs for one-time effects as well as losses from disposal of fixed
assets.
Income from government grants is reported as a deduction from the related expenses and amounted to
€ 10 million in 2025 (2024: € 4 million).
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385
31
Cost by nature
Supplementary information on the expenses by nature is detailed below.
Cost of materials represents the amount of inventories recognized as an expense during the period.
Depreciation of tangible and right-of-use assets, amortization of intangible assets, and impairment losses
and reversals of impairment losses on those assets are primarily included within other operating expenses
unless they are directly attributable to the production costs, in which case the expenses are included within
the cost of sales.
Personnel expenses are primarily included within other operating expenses unless they are directly
attributable to the production costs, in which case the expenses are included within the cost of sales.
Expenses relating to leases of low-value assets exclude short-term leases of low-value assets.
Cost of materials
11,959
11,610
Depreciation and amortization
1,121
1,170
Thereof: included within the cost of sales
6
11
Thereof: included within personnel expenses
18
15
Impairment losses
33
38
Reversals of impairment losses
(19)
(28)
Wages and salaries
2,785
2,769
Social security contributions
307
307
Pension expenses
134
107
Personnel expenses
3,226
3,184
Expense relating to short-term leases
13
5
Expense relating to leases of low-value assets
1
1
Expense relating to variable lease payments
154
134
Expenses by nature € in millions
Year ending
Dec. 31, 2025
Year ending
Dec. 31, 2024
Further information on expenses by function is provided in these Notes.
►SEE NOTE 30
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386
32
Financial income/Financial expenses
The financial result consists of the following:
Interest income from financial instruments measured at amortized cost
58
57
Interest income from non-financial assets
—
0
Other
17
44
Financial income
74
101
Financial income € in millions
Year ending
Dec. 31, 2025
Year ending
Dec. 31, 2024
Interest expense on financial instruments measured at amortized cost
214
196
Thereof: interest expense on lease liabilities
109
99
Interest expense on other provisions and non-financial liabilities
14
25
Net foreign exchange losses
78
93
Other
5
2
Financial expenses
310
317
Financial expenses € in millions
Year ending
Dec. 31, 2025
Year ending
Dec. 31, 2024
Interest income from financial instruments, measured at amortized cost, mainly consists of interest income
from bank deposits calculated using the ‘effective interest method.’
Interest expense on financial instruments measured at amortized cost mainly includes interest on lease
liabilities as well as interest on borrowings calculated using the ‘effective interest method.’
Interest expense on other provisions, and non-financial liabilities in particular, include effects from the
measurement of other provisions at present value and interest on non-financial liabilities such as tax
payables.
Interest income/expense from financial instruments at fair value through profit or loss mainly includes
interest payments from investment funds as well as net interest payments from interest derivatives that are
not part of a hedging relationship. In 2025, as well as in the previous year, there was no interest income/
expenses from financial instruments at fair value through profit or loss. Unrealized gains/losses from fair
value measurement of such financial assets are shown in other financial income or expenses.
Information regarding investments, borrowings, and financial instruments is also included in these Notes.
►SEE NOTE 13 ►SEE NOTE 16 ►SEE NOTE 28
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387
33
Hyperinflation
Due to the rapid devaluation of the Argentinian peso and the Turkish lira, Argentina and Turkey are
considered to be hyperinflationary and as a result, the application of IAS 29 was adopted for the first time
in the third quarter of 2018 (Argentina) and the second quarter of 2022 (Turkey). The financial statements
of those subsidiaries that have the Argentinian peso or Turkish lira as a functional currency have been
restated for the change in the general purchasing power retrospectively since January 1, 2018 (Argentina),
and January 1, 2022 (Turkey). The financial statements are based on a historical cost approach. The prior-
year figures of both the Argentinian peso and the Turkish lira are stated in terms of the measuring unit
current at December 31, 2024.
The Argentinian price index (FACPCE) at December 31, 2025, was 133,090.75 (2024: 102,555.86),
increasing by 30% (2024: 128%). The price index in Turkey (Turkish Statistical Institute) increased by 31%
(2024: 44%) and at December 31, 2025, was 3,513.87 (2024: 2,684.55).
Both for Argentina and for Turkey, for the translation into the presentation currency (euro), all amounts were
translated at the closing rate at December 31, 2025. The net assets in the subsidiary’s local financial
statements were adjusted for changes in the price level.
In 2025, the respective loss on the net monetary position has amounted to € 70 million (2024:
€ 48 million) and is recognized in the financial expenses.
34
Income taxes
adidas AG and its German subsidiaries are subject to German corporate and trade taxes. For the years
ending December 31, 2025 and 2024, the statutory corporate income tax rate of 15% plus a surcharge of
5.5% thereon is applied to earnings. The municipal trade tax is approximately 11.5% of taxable income. For
the measurement of deferred taxes, the gradual reduction of the corporate income tax rate to 10%, which
will be enacted during the fiscal years 2028 to 2032, is considered.
For non-German subsidiaries, deferred taxes are calculated based on tax rates that have been enacted or
substantively enacted by the closing date.
Deferred tax assets and liabilities
Deferred tax assets and liabilities are offset and presented in the consolidated financial position as
follows:
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Deferred tax assets
1,077
1,272
Deferred tax liabilities
(45)
(133)
Deferred tax assets, net
1,031
1,139
Deferred tax assets/liabilities € in millions
Dec. 31, 2025
Dec. 31, 2024
The movement of net deferred taxes is as follows:
Deferred tax assets, net as at January 1
1,139
1,211
Deferred tax (expense)/income
(81)
(39)
Change in deferred taxes attributable to remeasurements of defined benefit
plans recorded in other comprehensive income1
15
3
Change in deferred taxes attributable to the change in the effective portion of
the fair value of qualifying hedging instruments recorded in other
comprehensive income2
(43)
(39)
Currency translation differences
1
3
Deferred tax assets, net as at December 31
1,031
1,139
►1 SEE NOTE 23
►2 SEE NOTE 28
Movement of deferred taxes € in millions
2025
2024
Gross company deferred tax assets and liabilities before appropriate offsetting are attributable to the items
detailed in the table below:
Non-current assets
315
441
Current assets
240
334
Liabilities and provisions
959
957
Accumulated tax loss carry-forwards
94
195
Deferred tax assets
1,608
1,927
Non-current assets
378
392
Current assets
43
126
Liabilities and provisions
156
270
Deferred tax liabilities
577
788
Deferred tax assets, net
1,031
1,139
Deferred taxes € in millions
Dec. 31, 2025
Dec. 31, 2024
Deferred tax assets are recognized only to the extent that future taxable profits will be available against
which the related benefit can be utilized. For the assessment of future taxable profits, in addition to past
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389
performance and the respective prospects for the foreseeable future, appropriate tax structuring measures
are also taken into consideration.
Deferred tax assets for which the realization of the related tax benefits is not probable decreased from
€ 219 million to € 180 million for the year ending December 31, 2025. The majority of this amount relates
to capital tax losses in the US, which expire in 2027 and can only be offset against capital income. The
remaining unrecognized deferred tax assets relate to subsidiaries operating in markets where the
realization of the related tax benefit is not considered probable.
Tax expenses
Tax expenses are split as follows:
Current tax expenses
361
278
Deferred tax expense/(income)
81
19
Income tax expenses
443
297
Income tax expenses € in millions
Year ending
Dec. 31, 2025
Year ending
Dec. 31, 2024
The deferred tax expense includes tax expense of € 4 million in total (2024: tax income of € 104 million)
related to the origination and reversal of temporary differences.
The company’s applicable tax rate is 27.4% (2024: 27.4%), which corresponds to the applicable income tax
rate in fiscal year 2025 of adidas AG.
The company’s effective tax rate differs from the applicable tax rate of 27.4% as follows:
Expected income tax expenses
498
27.4
307
27.4
Tax rate differentials
(129)
(7.1)
(114)
(10.2)
Non-deductible expenses and tax-free
income
(16)
(0.9)
23
2.0
Losses for which benefits were not
recognizable and changes in write-down
of deferred tax assets
(22)
(1.2)
(5)
(0.4)
Changes in tax rates
12
0.7
10
0.8
Other, net
13
0.7
(2)
(0.2)
Withholding tax expenses
86
4.7
78
7.0
Income tax expenses
443
24.3
297
26.5
Tax rate reconciliation
Year ending Dec. 31, 2025
Year ending Dec. 31, 2024
€ in millions
in %
€ in millions
in %
In 2025, the effective tax rate was 24.3%. The effective tax rate in 2024 was 26.5%.
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390
The line item ‘Non-deductible expenses and tax-free income’ includes tax expense/benefits relating to tax-
free income, movements in provisions for uncertain tax positions, and tax expense/benefits relating to prior
periods. In 2025, the tax income relating to prior periods is € 26 million (2024: tax expense of
€ 35 million).
For 2025, the line item ‘Losses for which benefits were not recognizable and changes in write-down of
deferred tax assets’ relates to reversals of previous write-downs (€ 13 million) mainly for Hong Kong and
Brazil. For 2024, this line item mainly related to write-downs in respect of Argentina (€ 8 million) and a
reversal of previous write-downs for Hong Kong (€ 8 million) and Russia (€ 6 million).
For 2025, the total tax benefit arising from previously unrecognized tax losses, credits, or temporary
differences in prior years that lead to a reduction of current tax expense is € 5 million (2024: € 1 million).
For 2025 the line item ‘Changes in tax rates’ mainly reflects the upcoming tax rate decrease in Germany
which is considered in the valuation of deferred taxes. For 2024, the effect was mainly related to
Switzerland.
The group is within the scope of the OECD Pillar Two model rules (Global Minimum Tax) and it applies the
IAS 12 exception to the recognition and disclosure of information about deferred tax assets and liabilities
related to Pillar Two income taxes.
Considering the impact of the Pillar Two legislation, the group recognized a current income tax expense of
€ 10 million for the year 2025 (2024: € 4 million). This is included in income tax in the statement of profit
or loss.
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391
35
Earnings per share
Basic earnings per share are calculated by dividing the net income from continuing operations attributable
to shareholders by the weighted average number of shares outstanding during the year, excluding ordinary
shares purchased by adidas and held as treasury shares. If negative earnings per share are reported,
according to IAS 33.41, no anti-dilutive effect may be taken into account.
Net income from continuing
operations (€ in millions)
1,377
824
—
—
—
—
Net income attributable to
non-controlling interests (€ in
millions)
45
68
—
—
—
—
Net income attributable to
shareholders (€ in millions)
1,332
756
8
8
1,340
764
Weighted average number of
shares
178,559,220
178,549,084
178,559,220
178,549,084
178,559,220
178,549,084
Basic earnings per share (€)
7.46
4.24
0.04
0.04
7.51
4.28
Net income attributable to
shareholders (€ in millions)
1,332
756
8
8
1,340
764
Net income used to
determine diluted earnings
per share (€ in millions)
1,332
756
8
8
1,340
764
Weighted average number of
shares
178,559,220
178,549,084
178,559,220
178,549,084
178,559,220
178,549,084
Dilutive effect of share-based
payments
6,110
14,301
6,110
14,301
6,110
14,301
Weighted average number of
shares for diluted earnings
per share
178,565,330
178,563,385
178,565,330
178,563,385
178,565,330
178,563,385
Diluted earnings per share (€)
7.46
4.24
0.04
0.04
7.51
4.28
Earnings per share
Continuing operations
Discontinued operations
Total
Year ending
Dec. 31, 2025
Year ending
Dec. 31, 2024
Year ending
Dec. 31, 2025
Year ending
Dec. 31, 2024
Year ending
Dec. 31, 2025
Year ending
Dec. 31, 2024
Additional information
36
Segmental information
adidas operates predominantly in one industry segment – the design, distribution, and marketing of athletic
and sports lifestyle products.
As at December 31, 2025, following the company’s internal management reporting by markets and in
accordance with the definition of IFRS 8 ‘Operating Segments,’ seven operating segments were identified:
Europe, Emerging Markets, North America, Greater China, Latin America, Japan, and South Korea. Due to
the small size of the two operating segments Japan and South Korea, they are not reportable segments
and are therefore reported as ‘all other segments’ under the designation Japan/South Korea for external
segment reporting.
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392
Each market comprises all wholesale, retail, and e-commerce business activities relating to the distribution
and sale of products of the adidas brand to retail customers and end consumers.
Other Businesses includes the business activities of the Y-3 label and other subordinated businesses
which are not monitored separately by the chief operating decision-maker. Also, certain centralized
corporate functions do not meet the definition of IFRS 8 for an operating segment. This includes, in
particular, functions such as Global Brands and Global Sales (central brand and distribution management),
central treasury, and global sourcing as well as other headquarter functions. Assets, liabilities, income, and
expenses relating to these corporate functions are presented in the reconciliations.
The chief operating decision-maker for adidas has been defined as the entire Executive Board of adidas AG.
Net sales represent revenue from contracts with customers. There are no intersegment sales between the
reportable segments. Accounting and valuation policies applied for reporting segmental information are the
same as those used for adidas.
►SEE NOTE 02
The results of the operating segments are defined as gross profit minus other operating expenses plus
royalty and commission income and other operating income attributable to the segment or group of
segments, but without considering headquarter costs and central expenses for marketing.
Segmental assets include accounts receivable as well as inventories. Only these items are reported to the
chief operating decision-maker on a regular basis. Depreciation, amortization, impairment losses (except for
goodwill), and reversals of impairment losses as well as capital expenditure for tangible and intangible
assets are part of the segmental reporting, even though segmental assets do not contain tangible and
intangible assets. Depreciation and amortization as well as impairment losses and reversals of impairment
losses not directly attributable to a segment are presented under line items ‘HQ’ and ‘Consolidation’ in the
reconciliations.
Segmental liabilities only contain accounts payable from operating activities as there are no other liability
items reported regularly to the chief operating decision-maker.
Interest income and interest expenses as well as income taxes are not allocated to the reportable
segments and are not reported separately to the chief operating decision-maker.
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393
Europe
8,136
7,551
4,195
3,795
1,692
1,485
2,611
2,149
North America
5,087
5,128
2,312
2,210
544
480
1,779
1,645
Greater China
3,623
3,459
1,904
1,717
802
714
1,044
899
Emerging Markets
3,510
3,310
1,784
1,698
701
738
1,341
1,272
Latin America
2,926
2,772
1,391
1,329
609
614
1,290
1,029
Reportable segments
23,282
22,219
11,586
10,749
4,348
4,031
8,066
6,994
Japan/South Korea
1,406
1,339
740
711
305
295
494
414
Other Businesses
72
93
36
46
16
14
32
23
Total
24,760
23,651
12,363
11,506
4,669
4,339
8,592
7,430
1 Prior year adjusted due to a reclassification to Other Businesses.
2 Year ending December 31.
3 At December 31.
Segmental information1 I € in millions
Net sales
(third parties)2
Segmental gross profit2
Segmental operating
profit2
Segmental assets3
2025
2024
2025
2024
2025
2024
2025
2024
Europe
212
187
68
84
259
256
(11)
(11)
North America
91
73
70
87
151
172
3
13
Greater China
305
338
55
69
190
201
14
3
Emerging Markets
130
151
61
72
164
160
3
(0)
Latin America
133
112
37
26
67
59
1
(0)
Reportable segments
870
861
291
339
831
849
10
5
Japan/South Korea
39
38
25
29
79
77
(3)
4
Other Businesses
4
4
1
2
4
5
(0)
(4)
Total
913
902
318
370
914
931
7
5
1 Prior year adjusted due to a reclassification to Other Businesses.
2 At December 31.
3 Year ending December 31.
Segmental information1 II € in millions
Segmental liabilities2
Capital expenditure3
Depreciation and
amortization3
Impairment losses and
reversals of impairment
losses3
2025
2024
2025
2024
2025
2024
2025
2024
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The following table shows the net sales (with third parties) broken down by segment and product division.
Total
8,136
7,551
5,087
5,128
3,623
3,459
3,510
3,310
Latin America
Reportable segments
Japan/South Korea
Other Businesses
2025
2024
2025
2024
2025
2024
2025
2024
Footwear
1,837
1,792
13,432
13,174
734
754
21
28
Apparel
889
829
8,117
7,369
604
514
42
53
Accessories
200
151
1,733
1,685
69
71
9
12
Total
2,926
2,772
23,282
22,219
1,406
1,339
72
93
Total
2025
2024
Footwear
14,232
13,977
Apparel
8,764
7,937
Accessories
1,815
1,779
Total
24,811
23,683
1 Prior year adjusted due to a reclassification to Other Businesses.
2 Prior year adjusted due to a reclassification within the product divisions.
3 Differences to aggregated net sales may arise due to items which are not directly attributable.
Net sales (with third parties)1,2,3 € in millions
Europe
North America
Greater China
Emerging Markets
2025
2024
2025
2024
2025
2024
2025
2024
Footwear
4,675
4,404
2,857
2,938
1,904
1,933
2,159
2,106
Apparel
2,923
2,617
1,581
1,496
1,603
1,421
1,120
1,006
Accessories
538
526
649
694
115
104
231
210
Reconciliations
The following tables include reconciliations of segmental information to the aggregate numbers of the
consolidated financial statements, taking into account items which are not directly attributable to a
segment.
Reportable segments
23,282
22,219
Japan/South Korea
1,406
1,339
Other Businesses
72
93
HQ/Consolidation
51
32
Total net sales
24,811
23,683
1 Prior year adjusted due to a reclassification to Other Businesses.
Net sales (third parties)1 € in millions
Year ending
Dec. 31, 2025
Year ending
Dec. 31, 2024
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395
Reportable segments
11,586
10,749
Japan/South Korea
740
711
Other Businesses
36
46
HQ/Consolidation
442
520
Gross profit
12,804
12,026
1 Prior year adjusted due to a reclassification to Other Businesses.
Gross profit1 € in millions
Year ending
Dec. 31, 2025
Year ending
Dec. 31, 2024
Operating profit for reportable segments
4,348
4,031
Operating profit for Japan/South Korea
305
295
Operating profit for Other Businesses
16
14
HQ
(1,512)
(2,180)
Central expenditure for marketing
(1,065)
(906)
Consolidation
(36)
83
Operating profit
2,056
1,337
Financial income
74
101
Financial expenses
(310)
(317)
Income before taxes
1,820
1,121
1 Prior year adjusted due to a reclassification to Other Businesses.
Operating profit1 € in millions
Year ending
Dec. 31, 2025
Year ending
Dec. 31, 2024
Reportable segments
291
339
Japan/South Korea
25
29
Other Businesses
1
2
HQ
159
170
Total
477
540
Capital expenditure € in millions
Year ending
Dec. 31, 2025
Year ending
Dec. 31, 2024
Reportable segments
831
849
Japan/South Korea
79
77
Other Businesses
4
5
HQ
207
240
Total
1,121
1,170
Depreciation and amortization € in millions
Year ending
Dec. 31, 2025
Year ending
Dec. 31, 2024
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396
Reportable segments
10
5
Japan/South Korea
(3)
4
Other Businesses
(0)
(4)
HQ
6
4
Total
14
9
Impairment losses and reversals of impairment losses € in millions
Year ending
Dec. 31, 2025
Year ending
Dec. 31, 2024
Accounts receivable and inventories of reportable segments
8,066
6,994
Accounts receivable and inventories of Japan/South Korea
494
414
Accounts receivable and inventories of Other Businesses
32
23
Accounts receivable and inventories of HQ
(126)
(28)
Current financial assets
2,135
3,405
Other current assets
1,375
1,098
Non-current assets
8,285
8,751
Total
20,262
20,655
1 Prior year adjusted due to a reclassification to Other Businesses.
Assets1 € in millions
Dec. 31, 2025
Dec. 31, 2024
Accounts payable of reportable segments
870
861
Accounts payable of Japan/South Korea
39
38
Accounts payable of Other Businesses
4
4
Accounts payable of HQ
1,998
2,194
Current financial liabilities
1,583
1,368
Other current liabilities
4,600
5,129
Non-current liabilities
5,043
5,194
Total
14,137
14,788
1 Prior year adjusted due to a reclassification to Other Businesses.
Liabilities1 € in millions
Dec. 31, 2025
Dec. 31, 2024
Geographical information
Net sales (third parties) are shown in the geographic market in which the net sales are realized. Non-current
assets are allocated to the geographic market based on the domicile of the respective subsidiary
independent of the segmental structure and consist of tangible assets, goodwill, trademarks, other
intangible assets, right-of-use assets, and other non-current assets.
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Europe
8,175
7,589
3,367
3,181
North America
5,092
5,134
1,098
1,262
Greater China
3,636
3,476
768
929
Emerging Markets
3,510
3,311
781
762
Latin America
2,928
2,765
237
194
Japan/South Korea
1,471
1,408
387
401
Total
24,811
23,683
6,638
6,728
Geographical information by market € in millions
Net sales (third parties)
Non-current assets
Year ending
Dec. 31, 2025
Year ending
Dec. 31, 2024
Dec. 31, 2025
Dec. 31, 2024
Germany
1,553
1,461
1,280
1,471
USA
4,695
4,730
1,008
1,179
China
3,280
3,097
673
898
Geographical information by country € in millions
Net sales (third parties)
Non-current assets
Year ending
Dec. 31, 2025
Year ending
Dec. 31, 2024
Dec. 31, 2025
Dec. 31, 2024
37
Additional cash flow information
In 2025 the decrease in cash flows from operating activities was driven by a less favorable operating
working capital development, which was partly offset by an increase in income before taxes.
Cash flows from investing activities in 2025 mainly related to spending on intangible assets and property,
plant, and equipment, which was partly offset by proceeds from sale of a disposal group from prior years.
Cash flows from financing activities in 2025 mainly related to the proceeds from issuance of a new bond,
repayment of a bond, repayments of lease liabilities, interests paid, and dividend paid to shareholders of
adidas AG.
The effects resulting from the application of IAS 29 ‘Accounting in hyperinflationary countries’ are recorded
in the cash flow from operating activities in the line ‘IAS 29 - Hyperinflation effects in operating cash flow.’
In 2025, the following changes in financial liabilities impacted the net cash used in financing activities:
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Short-term borrowings
570
(405)
—
—
418
—
63
645
Long-term borrowings
1,915
448
—
—
(418)
—
52
1,996
Lease liabilities
3,102
(752)
609
—
—
(158)
113
2,913
Total
5,587
(709)
609
—
—
(158)
227
5,555
1 Interest payments and interest expenses are reported separately in the reconciliation of financial liabilities in ‘Net payments/proceeds in the period’ and ‘Other.’
Impact of change in financial liabilities on net cash used in financing activities € in millions
Non-cash effects
Jan. 1, 2025
Net
(payments)/
proceeds in
the period1
IFRS 16
lease
obligations
Fair value
adjustments
Transfer
within
financial
liabilities
Effect of
exchange
rates
Other1
Dec. 31, 2025
Impact of change in financial liabilities on net cash used in financing activities € in millions
Non-cash effects
Jan. 1, 2024
Net
(payments)/
proceeds in
the period1
IFRS 16
lease
obligations
Fair value
adjust-
ments
Transfer
within
financial
liabilities
Effect of
exchange
rates
Other1
Dec. 31, 2024
Short-term borrowings
549
(561)
—
—
518
—
64
570
Long-term borrowings
2,430
(47)
—
—
(518)
—
50
1,915
Lease liabilities
2,584
(755)
1,143
—
—
29
102
3,102
Total
5,564
(1,364)
1,143
—
—
29
216
5,587
1 Interest payments and interest expenses are reported separately in the reconciliation of financial liabilities in ‘Net payments/proceeds in the period’ and ‘Other.’
38
Other financial commitments and contingencies
adidas has other financial commitments for promotion and advertising contracts, which mature as follows:
Within 1 year
1,578
1,491
Between 1 and 5 years
4,345
4,485
After 5 years
1,974
2,146
Total
7,897
8,122
Financial commitments for promotion and advertising € in millions
Dec. 31, 2025
Dec. 31, 2024
Commitments with respect to promotion and advertising contracts maturing after five years have remaining
terms of up to 13 years from December 31, 2025.
The slight decrease compared to the prior year was mainly driven by commitments fulfilled during the year
and the expiration of sports marketing contracts.
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Service arrangements
adidas has outsourced certain logistics, maintenance, and information technology functions, for which it
has entered into long-term contracts. Financial commitments under these contracts mature as follows:
Within 1 year
308
291
Between 1 and 5 years
417
342
After 5 years
114
36
Total
839
669
Financial commitments for service arrangements € in millions
Dec. 31, 2025
Dec. 31, 2024
The increase compared to the prior year mainly relates to new IT service agreements entered into during
the year, which resulted in higher financial commitments.
Contingent liabilities
As of December 31, 2025, contingent liabilities exist in connection with guarantees from leases in the
amount of € 46 million. These mainly relate to the Reebok business and could not be terminated upon its
sale.
Litigation and other legal risks
The company is currently engaged in various lawsuits resulting from the ordinary course of business, mainly
in connection with commercial and partnership agreements as well as intellectual property rights. The risks
triggered by these lawsuits are covered by provisions if and to the extent a reliable estimate of the
company’s potential liability can be made. In the opinion of Management, the ultimate liabilities resulting
from such claims will not materially affect the assets, liabilities, financial position, and profit or loss of the
company.
►SEE NOTE 18
The company is in dispute with the local revenue authorities in South Africa (SARS) with regard to the
customs value of imported products. In June 2018, SARS issued a ruling claiming a customs payment
including interest and penalties for the years 2007 to 2013 totaling ZAR 1,871 million (€ 96 million).
adidas has applied for a suspension of the payment demand and in 2019 instituted legal action against
the decision before the High Court in South Africa. In the event that the court rules in favor of SARS, adidas
intends to appeal the decision at the Supreme Court of South Africa. Based on external legal opinions,
Management currently believes that it is more likely than not that the claim made by SARS will eventually
not result in an outflow of resources. Therefore, a provision was not recognized in the consolidated
statement of financial position.
In connection with the financial irregularities of Reebok India Company in 2012, various legal uncertainties
were identified. At this stage, the respective ultimate risk cannot be determined conclusively. However,
based on opinions obtained from external counsel and internal assessments, Management assumes that
the possibility of any cash outflow in settlement is remote. Therefore, no material negative influence on the
assets, liabilities, financial position, and profit of the company is expected.
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In connection with the termination of the Yeezy partnership, adidas had initiated in 2022 arbitration
proceedings against Kanye West and entities controlled by him (Defendants) claiming, among others,
damages. In this context, the Defendants filed certain counterclaims against adidas. The dispute was
settled by the parties in July 2024; as a result thereof, the parties withdrew their respective claims.
In 2023, the plaintiff Hampton Roads Shipping Association – International Longshoremen’s Association
Funds, an entity which had purchased adidas American Depository Receipts (ADRs) representing adidas AG
shares, initiated a securities class action at the US District Court in Portland (Oregon). The plaintiff alleges
that the company ‘recklessly or intentionally made false or misleading statements’ regarding risks arising
from the business partnership with its former partner Kanye West and/or the company’s public
commitments to diversity and inclusion by allegedly failing to disclose certain statements and other
misconduct of Kanye West. With respect to loss causation and damages, the plaintiff points to specific
share price drops for adidas ADRs that it connects to adidas’ alleged misstatements or omissions. Also, on
behalf of other adidas ADR holders, the plaintiff seeks monetary compensation for damages suffered from
price drops of adidas ADRs. The company rejects these allegations in full and filed a motion to dismiss in
February 2024. In August 2024, the US District Court in Portland (Oregon) granted the motion to dismiss as
requested by the company. Upon appeal by the plaintiff, the judgment of the court of first instance from
August 2024 was upheld in its entirety by the US Court of Appeals for the 9th Circuit in December 2025.
The plaintiff may still file a petition to appeal this ruling with the US Supreme Court. Management believes
that the complaint will not have any material influence on the assets, liabilities, financial position, and
profit or loss of the company.
The company is currently involved in a dispute with the German customs authorities. The central question is
around the correct calculation of customs duties and import VAT for products imported into Germany from
outside the European Union. In December 2021, the main customs office in Nuremberg began customs
audits for the period starting October 2019; these audits have been suspended since March 2023. The
customs authorities have issued tax amendment notices for the period from October 2019 to the end of
2023. The company has met the payment obligation for the resulting additional customs duties in full, but
has lodged an appeal against the respective notices. In December 2024, the European Public Prosecutor’s
Office supported by the German customs authorities carried out a search at selected adidas sites in
Germany and Austria in connection with these customs and tax law issues. The European Public
Prosecutor’s Office is investigating suspected import duty evasion (customs duties and import VAT). The
company is cooperating fully with the customs and law enforcement authorities. Based on external expert
opinions, among other things, management currently believes that the effects of this dispute will not have
any material impact on the assets, liabilities, financial position, and profit or loss of the company.
39
Related party disclosures
According to the definitions of IAS 24 ’Related Party Disclosures’, the Supervisory Board and the Executive
Board of adidas AG have been identified as related parties who receive compensation essentially in
connection with their function as key management personnel. These consolidated financial statements
contain detailed information about the compensation of the Supervisory Board and the Executive Board of
adidas AG.
►SEE NOTE 40
In addition, a brand ambassador agreement was in place between adidas and the Supervisory Board
member Jackie Joyner-Kersee. For her services under this agreement, Jackie Joyner-Kersee in 2025
received fixed compensation of € 0.2 million (2024: € 0.2 million). As of the reporting date, there were no
outstanding balances in this context.
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Members of the Executive Board and the Supervisory Board and their close family members are free to buy
or sell shares of the Company on the market. The shares held by this group of persons are regularly
entitled to dividends, so that the dividend, as resolved by the 2025 Annual General Meeting, was paid out
per share held to these persons in 2025. The employee representatives on the Supervisory Board are also
entitled to participate in the adidas AG employee stock purchase program. Shares are purchased at a
discount of 15% on the same terms as for other employees. Participants who hold their self-acquired
shares for at least one year will subsequently receive one share for every six shares held without additional
payment, provided they are still adidas employees at that time.
►SEE NOTE 26
In addition to their compensation for their Supervisory Board activities, the employee representatives on the
Supervisory Board continued to receive salaries under their normal employment contracts. These were not
influenced by their Supervisory Board activities.
A schedule of the adidas AG subsidiaries included in the consolidated financial statements is shown in the
Shareholdings list attached to the Notes to the consolidated financial statements. Balances and
transactions between the company and its subsidiaries that are related parties have been eliminated in
consolidation and are not presented in these Notes.
►SEE SHAREHOLDINGS
In addition, adidas Pension Trust e.V., a registered association, is regarded as a related party. Based on a
Contractual Trust Arrangement, adidas Pension Trust e.V. manages the plan assets in the form of an
administrative trust to fund and protect part of the pension obligations of adidas AG. Employees, senior
executives, and members of the Executive Board of adidas AG can be members of the registered
association. adidas AG has the right to claim a refund of pension payments from adidas Pension Trust e.V.
under specific contractually agreed conditions. As of December 31, 2025, adidas Pension Trust e.V. held
plan assets of € 408.7 million (2024: € 392.5 million) in trust for adidas AG. In 2025, adidas AG made
lease payments of € 7.3 million (2024: € 7.0 million) to adidas Pension Trust e.V. As of December 31,
2025, there were outstanding liabilities to adidas Pension Trust e.V. in the amount of € 0.6 million
(2024: € 0.6 million). There were no material outstanding receivables from adidas Pension Trust e.V. as of
December 31, 2025 (2024: € 0 million).
►SEE NOTE 23
The non-profit foundation adidas Stiftung, Herzogenaurach, established in 2023, together with its
subsidiary (collectively ‘the foundation’), is also considered a related party of adidas AG.
In 2023, adidas AG entered into a donation agreement with the foundation and committed to make a
donation in a total amount of € 115.3 million over several years to the foundation. During 2024, the total
commitment was reduced to € 106.1 million whereas, on basis of separate agreements, adidas made
additional commitment to donate the amount of € 106 million.
Furthermore, there was a service agreement for the temporary provision of certain services by adidas AG in
2024, for which remuneration of around € 0.3 million was agreed and adidas AG has waived the
receivables from the foundation. No services were rendered in 2025.
In 2025, adidas AG transferred € 16.1 million to the foundation based on the existing donation agreements
(2024: € 16.9 million).
As of December 31, 2025, the total discounted amount outstanding to the foundation was € 168.2 million
(2024: € 183.2 million). Nominal value: € 179.1 million (2024: € 195.2 million).
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402
40
Other information
Employees
The average numbers of employees are as follows:
Own retail
35,467
32,676
Sales
2,811
2,928
Logistics
7,244
7,075
Marketing
4,904
4,810
Administration
5,581
5,279
Production
426
399
Research and development
973
1,047
Information technology
4,546
4,924
Total
61,952
59,137
Employees
Year ending
Dec. 31, 2025
Year ending
Dec. 31, 2024
Accountant service fees for the auditor of the financial statements
The expenses for the audit fees comprise the expenses of adidas AG, Herzogenaurach. In 2025, the
expenses for fees for the auditor PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft
amounted to € 4 million (2024: € 5 million) of which € 0 million pertain to the previous year.
Audit services
3
4
Other confirmation services
1
1
Tax consultancy services
—
—
Other services
—
—
Sum
4
5
Fees € in millions
2025
2024
Expenses for the audit fees of PricewaterhouseCoopers GmbH Wirtschaftsprüfungsgesellschaft were mainly
related to the audits of both the consolidated financial statements and the financial statements of
adidas AG, the review of essential components of the consolidated interim financial statements as of June
30, 2025, and the audit of the financial statements of its subsidiary, adidas CDC Immobilieninvest GmbH.
Other confirmation services relate to confirmation services provided for by law or contract, such as the
audit of the non-financial statement and other contractually agreed confirmation services.
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403
Compensation of the Supervisory Board and the Executive Board of adidas AG
Supervisory Board
The total annual compensation to be paid to the Supervisory Board members in accordance with the
Articles of Association of adidas AG, including attendance fees, amounted to € 3.0 million in total (2024:
€ 2.9 million).
The Supervisory Board members did not receive any loans or advance payments in the 2025 financial year.
The consolidated financial statements contain further information on an existing brand ambassador
agreement between adidas and the Supervisory Board member Jackie Joyner-Kersee.
►SEE NOTE 39
Executive Board
The total compensation (expense-based) of the Executive Board members amounted to € 19.4 million
(2024: € 34.5 million) in the 2025 financial year. Short-term benefits amounted to € 14.3 million
(2024: € 16.9 million).
The short-term benefits comprise the one-year Performance Bonus, for which the performance criteria are
currency-neutral net sales growth, operating profit, and individual performance criteria.
As part of the compensation system applicable from 2024, the Supervisory Board has introduced a revised
Long Term Incentive Plan (LTIP) for the long-term performance-related variable compensation. This LTIP
consists of annual tranches with a term of four years each. The performance period is three years. The LTIP
Bonus granted has to be fully invested into the acquisition of adidas AG shares after deducting applicable
taxes and social security contributions. The shares acquired are subject to a one-year lock-up period. The
LTIP payout amount is considered earned only after expiry of the lock-up period and only then can the
Executive Board members dispose of the shares. The performance criteria determined in the LTIP 2025
comprise operating profit, relative shareholder return compared to the DAX, and two ESG targets. Costs for
the LTIP amounted to € 4.1 million (2024: € 5.4 million).
In the 2025 financial year, a total of € 0.5 million was attributable to severance payments, settlement
payments, and payments in connection with non-competition prohibitions (2024: € 12.7 million). Costs for
payments after the termination of the service contract (past service costs of the pension commitment for
Executive Board members) amounted to € 0.5 million in the 2025 financial year (2024: € 0.7 million). As at
December 31, 2025, the defined benefit obligations for pension commitments for the Executive Board
members in office in the year under review amounted to € 4.2 million (2024: € 5.9 million).
As of December 31, 2025, there are provisions for short-term variable compensation components for
members of the Executive Board amounting to € 7.0 million (2024: € 8.9 million).
The current members of the Executive Board were not granted any loans or advance payments in the 2025
financial year.
Total compensation of the members of the Supervisory Board and the Executive Board pursuant to § 314 (1)
in conjunction with § 315e German Commercial Code (Handelsgesetzbuch – HGB)
The total compensation of the Executive Board members amounted to € 21.0 million in the 2025 financial
year (2024: € 24.3 million). The fair value at the time of granting the LTIP 2025 amounts to € 6.7 million,
comprising 29,159 shares promised.
ANNUAL REPORT 2025
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2
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4
5
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TO OUR
SHAREHOLDERS
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404
Executive Board members who were first appointed after January 1, 2021, are not granted any benefits
under the company pension scheme. Instead, they receive a so-called pension allowance in the form of an
adequate flat, earmarked amount, which is directly paid out to the Executive Board members annually. In
this regard, Bjørn Gulden received € 1.1 million, Michelle Robertson € 0.4 million, and Mathieu Sidokpohou
€ 0.2 million in the 2025 financial year.
The total annual compensation to be paid to the members of the Supervisory Board in accordance with the
Articles of Association of adidas AG, including attendance fees, totaled € 3.0 million (2024: € 2.9 million).
In the 2025 financial year, payments to former members of the Executive Board and their surviving
dependents totaled € 4.9 million (2024: € 17.3 million).
Provisions for pension entitlements were created for the former members of the Executive Board who
resigned on or before December 31, 2005, and their surviving dependents, totaling € 43.7 million (2024:
€ 46.1 million) as at December 31, 2025, before offsetting with the assets of the ‘adidas Pension Trust
e.V.’ There are pension commitments toward former Executive Board members who resigned after
December 31, 2005, which are covered by a pension fund or a pension fund in combination with a
reinsured pension trust fund. From this, indirect obligations amounting to € 36.2 million (2024:
€ 39.1 million) arise for which no provisions were created due to financing through the pension fund and
pension trust fund. There are pension commitments amounting to € 3.5 million (2024: € 3.6 million) for
two former Executive Board members who resigned on or after December 31, 2019.
Companies opting for exemption under § 264 (3) HGB
The subsidiary adidas CDC Immobilieninvest GmbH, Herzogenaurach, is opting for exemption under
§ 264 (3) HGB.
41
Information relating to the German corporate governance code
Information pursuant to § 161 German Stock Corporation Act (Aktiengesetz – AktG)
In December 2025, the Executive Board and the Supervisory Board of adidas AG issued an updated
Declaration of Compliance in accordance with § 161 AktG and made it permanently available to the
shareholders. The full text of the Declaration of Compliance is available on the company’s corporate
website.
ANNUAL REPORT 2025
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2
3
4
5
6
TO OUR
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GROUP MANAGEMENT REPORT –
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INFORMATION
405
42
Events after the balance sheet date
With the approval of the Supervisory Board, the Executive Board of adidas AG decided on January 29,
2026, to launch a share buyback. As of the finalization of these consolidated statements on February 19,
2026, adidas AG had purchased a total of 1,316,082 shares for a total price of € 201 million.
No further company-specific subsequent events are known that might have a material influence on the
assets, liabilities, financial position, and profit or loss of the company.
Date of preparation
The Executive Board of adidas AG prepared and approved the consolidated financial statements for
submission to the Supervisory Board on February 19, 2026. It is the Supervisory Board’s task to examine
the consolidated financial statements and give their approval.
Herzogenaurach, February 19, 2026
The Executive Board of adidas AG
BJØRN GULDEN
CHIEF EXECUTIVE OFFICER
HARM OHLMEYER
CHIEF FINANCIAL OFFICER
MICHELLE ROBERTSON
GLOBAL HUMAN RESOURCES,
PEOPLE AND CULTURE
MATHIEU SIDOKPOHOU
CHIEF COMMERCIAL OFFICER
ANNUAL REPORT 2025
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2
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4
5
6
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SHAREHOLDERS
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INFORMATION
406
Shareholdings
Germany
1
adidas Beteiligungsgesellschaft mbH2
Herzogenaurach (Germany)
directly
100
2
adidas CDC Immobilieninvest GmbH
Herzogenaurach (Germany)
11
100
3
adidas Insurance & Risk Consultants GmbH2
Herzogenaurach (Germany)
directly
100
Europe (incl. Middle East and Africa)
4
adidas International Trading AG
Lucerne (Switzerland)
9
85
directly
15
5
adidas sport gmbh
Lucerne (Switzerland)
directly
100
6
adidas Austria GmbH
Klagenfurt (Austria)
directly
100
7
runtastic GmbH in Liqu.
Linz (Austria)
9
100
8
adidas France S.a.r.l.
Paris (France)
directly
100
9
adidas International B.V.
Amsterdam (Netherlands)
directly
93.97
8
6.03
10
adidas International Marketing B.V.
Amsterdam (Netherlands)
9
100
11
adidas International Property Holding B.V.
Amsterdam (Netherlands)
67
100
12
adidas Infrastructure Holding B.V.
Amsterdam (Netherlands)
9
100
13
adidas Benelux B.V.
Amsterdam (Netherlands)
directly
100
14
adidas Ventures B.V.
Amsterdam (Netherlands)
9
100
15
adidas (UK) Limited
Stockport (Great Britain)
9
100
16
Trafford Park DC Limited
Stockport (Great Britain)
12
100
17
adidas (Ireland) Limited
Kildare (Ireland)
9
100
18
adidas International Re DAC
Dublin (Ireland)
9
100
19
adidas España S.A.U.
Zaragoza (Spain)
1
100
20
adidas Italy S.p.A.
Milan (Italy)
9
100
21
adidas Portugal – Artigos de Desporto, S.A.
Lisbon (Portugal)
9
100
22
adidas Business Services, Lda.
Moreira da Maia (Portugal)
9
98
directly
2
23
adidas Norge AS
Oslo (Norway)
directly
100
24
adidas Sverige Aktiebolag
Solna (Sweden)
directly
100
25
adidas Suomi Oy
Vantaa (Finland)
9
100
26
adidas Danmark A/S
Them (Denmark)
9
100
27
adidas CR s.r.o.
Prague (Czech Republic)
directly
100
28
adidas Budapest Kft.
Budapest (Hungary)
directly
100
29
adidas Bulgaria EAD
Sofia (Bulgaria)
directly
100
30
LLC "adidas, Ltd."
Moscow (Russia)
directly
100
31
adidas Poland Sp. z o.o.
Warsaw (Poland)
directly
100
32
adidas Romania S.R.L.
Bucharest (Romania)
9
100
33
adidas Baltics SIA
Riga (Latvia)
9
100
34
adidas Slovakia s.r.o.
Bratislava (Slovak Republic)
directly
100
35
adidas Trgovina d.o.o.
Ljubljana (Slovenia)
directly
100
36
SC "adidas-Ukraine"
Kiev (Ukraine)
directly
100
37
adidas LLP
Almaty (Republic of
Kazakhstan)
directly
100
38
adidas Serbia DOO Beograd
Belgrade (Serbia)
9
100
39
adidas Croatia d.o.o.
Zagreb (Croatia)
9
100
40
adidas Hellas Single Member S.A.
Athens (Greece)
directly
100
41
adidas (Cyprus) Limited
Limassol (Cyprus)
directly
100
Shareholdings of adidas AG, Herzogenaurach, as at December 31, 2025
Company and domicile
Share in capital
held by1
in %
ANNUAL REPORT 2025
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2
3
4
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6
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ADDITIONAL
INFORMATION
407
42
adidas Spor Malzemeleri Satis ve Pazarlama A.S.
Istanbul (Türkiye)
9
100
43
adidas Emerging Markets L.L.C
Dubai (United Arab Emirates)
9
100
44
adidas Emerging Markets FZE
Dubai (United Arab Emirates)
9
100
45
adidas Levant Limited
Dubai (United Arab Emirates)
44
100
46
adidas Levant Limited – Jordan
Amman (Jordan)
45
100
47
adidas Imports & Exports Ltd.
Cairo (Egypt)
48
99.98
9
0.02
48
adidas Sporting Goods Ltd.
Cairo (Egypt)
9
99.81
directly
0.19
49
adidas Israel Ltd.
Holon (Israel)
9
100
50
adidas Morocco LLC
Casablanca (Morocco)
directly
100
51
adidas (South Africa) (Pty) Ltd.
Cape Town (South Africa)
directly
100
52
adidas Arabia Trading
Riyadh (Saudi Arabia)
directly
100
North America
53
adidas North America, Inc.
Wilmington, Delaware (USA)
9
100
54
adidas America, Inc.
Portland, Oregon (USA)
53
100
55
adidas International, Inc.
Portland, Oregon (USA)
53
100
56
adidas Team, Inc.
Des Moines, Iowa (USA)
53
100
57
adidas Holdings LLC
Wilmington, Delaware (USA)
53
69
61
31
58
adidas Indy, LLC
Wilmington, Delaware (USA)
53
100
59
Stone Age Equipment, Inc.
Marina Del Rey, California
(USA)
54
100
60
Spartanburg DC, Inc.
North Charleston, South
Carolina (USA)
54
100
61
adidas Pluto Corporation
Wilmington, Delaware (USA)
9
100
62
adidas Canada Limited
Woodbridge, Ontario (Canada)
9
100
Asia-Pacific
63
adidas Sourcing Limited
Hong Kong (China)
4
100
64
adidas Hong Kong Limited
Hong Kong (China)
1
100
65
adidas Trading (Far East) Limited
Hong Kong (China)
53
100
66
adidas (Suzhou) Co., Ltd.
Suzhou (China)
1
100
67
adidas Sports (China) Co., Ltd.
Shanghai (China)
1
100
68
adidas (China) Ltd.
Shanghai (China)
9
100
69
adidas Sports Goods (Shanghai) Co., Ltd.
Shanghai (China)
68
100
70
adidas Trading (Shanghai) Co., Ltd.
Shanghai (China)
9
100
71
adidas Logistics (Tianjin) Co., Ltd.
Tianjin (China)
12
100
72
adidas Business Services (Dalian) Limited
Dalian (China)
9
100
73
adidas Japan K.K.
Tokyo (Japan)
9
100
74
adidas Technical Services (Cambodia) Co., Ltd.
Phnom Penh (Cambodia)
9
100
75
adidas Korea LLC
Seoul (Korea)
directly
100
76
adidas Korea Technical Services Limited
Busan (Korea)
63
100
77
adidas India Marketing Private Limited
Gurugram (India)
9
89
directly
11
78
adidas Technical Services Private Limited
Gurugram (India)
63
100
79
Refop India Company
New Delhi (India)
57
99.93
54
0.07
78
0
80
PT adidas Indonesia
Jakarta (Indonesia)
9
99.67
directly
0.33
Shareholdings of adidas AG, Herzogenaurach, as at December 31, 2025
Company and domicile
Share in capital
held by1
in %
ANNUAL REPORT 2025
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2
3
4
5
6
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408
81
PT adidas Retail Indonesia
Jakarta (Indonesia)
9
99
directly
1
82
PT adidas Indonesia Technical Solutions
Jakarta (Indonesia)
9
99
directly
1
83
adidas (Malaysia) Sdn. Bhd.
Petaling Jaya (Malaysia)
directly
60
9
40
84
ADIDAS PHILIPPINES, INC.
Taguig City (Philippines)
directly
100
85
adidas Singapore Pte Ltd.
Singapore (Singapore)
directly
100
86
adidas Taiwan Limited
Taipei
9
100
87
adidas (Thailand) Co., Ltd.
Bangkok (Thailand)
directly
100
88
adidas Australia Pty Limited
Cremorne (Australia)
9
100
89
adidas New Zealand Limited
Auckland (New Zealand)
directly
100
90
adidas Vietnam Company Limited
Ho Chi Minh City (Vietnam)
9
100
91
adidas Technical Services Vietnam Limited Company
Ho Chi Minh City (Vietnam)
9
100
92
adidas (Mauritius) Limited
Port Louis (Mauritius)
57
100
Latin America
93
adidas Argentina S.A.
Buenos Aires (Argentina)
9
76.96
1
23.04
94
Refop de Argentina S.A.
Buenos Aires (Argentina)
directly
96.25
9
3.75
95
adidas do Brasil Ltda.
São Paulo (Brazil)
1
100
96
adidas Franchise Brasil Servicos Ltda.
São Paulo (Brazil)
95
99.99
directly
0.01
97
REFOP Produtos Esportivos Brasil Ltda.
São Paulo (Brazil)
9
100
98
adidas Chile Limitada
Santiago de Chile (Chile)
directly
99
3
1
99
adidas Colombia Ltda.
Bogotá (Colombia)
directly
100
100
adidas Perú S.A.C.
Lima (Peru)
directly
99.21
98
0.79
101
adidas de Mexico, S.A. de C.V.
Mexico City (Mexico)
directly
100
102
adidas Industrial, S.A. de C.V.
Mexico City (Mexico)
directly
100
103
Refop de Mexico, S.A. de C.V.
Mexico City (Mexico)
directly
100
104
adidas Latin America, S.A.
Panama City (Panama)
directly
100
105
Concept Sport, S.A.
Panama City (Panama)
9
100
106
3 Stripes S.A.
Montevideo (Uruguay)
directly
100
107
Tafibal S.A.
Montevideo (Uruguay)
directly
100
108
Raelit S.A.
Montevideo (Uruguay)
directly
100
109
adidas Sourcing Honduras, S.A.
San Pedro Sula (Honduras)
53
100
110
adidas Sourcing El Salvador, S.A. de C.V.
Antiguo Cuscatlán (El Salvador)
9
99.95
directly
0.05
1 The number refers to the number of the company.
2 Profit and loss transfer agreement.
Shareholdings of adidas AG, Herzogenaurach, as at December 31, 2025
Company and domicile
Share in capital
held by1
in %
ANNUAL REPORT 2025
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2
3
4
5
6
TO OUR
SHAREHOLDERS
GROUP MANAGEMENT REPORT –
OUR COMPANY
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CONSOLIDATED
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ADDITIONAL
INFORMATION
409
Responsibility Statement
To the best of our knowledge, and in accordance with the applicable reporting principles, the consolidated
financial statements give a true and fair view of the assets, liabilities, financial position, and profit or loss
of the Group, and the Group Management Report, which has been combined with the Management Report
of adidas AG, includes a fair review of the development and performance of the business and the position
of the Group, together with a description of the material opportunities and risks associated with the
expected development of the Group.
Herzogenaurach, February 19, 2026
BJØRN GULDEN
CHIEF EXECUTIVE OFFICER
HARM OHLMEYER
CHIEF FINANCIAL OFFICER
MICHELLE ROBERTSON
GLOBAL HUMAN RESOURCES,
PEOPLE AND CULTURE
MATHIEU SIDOKPOHOU
CHIEF COMMERCIAL OFFICER
ANNUAL REPORT 2025
1
2
3
4
5
6
TO OUR
SHAREHOLDERS
GROUP MANAGEMENT REPORT –
OUR COMPANY
GROUP MANAGEMENT REPORT –
FINANCIAL REVIEW
GROUP MANAGEMENT REPORT –
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CONSOLIDATED
FINANCIAL STATEMENTS
ADDITIONAL
INFORMATION
410
Copy of the Auditor’s Report
Based on the final results of our audit we issued the following unqualified auditor's report dated
February 24, 2026:
"Independent Auditor's report
To adidas AG, Herzogenaurach
Report on the audit of the consolidated financial statements and of the group management
report
Audit Opinions
We have audited the consolidated financial statements of adidas AG, Herzogenaurach, and its subsidiaries
(the Group), which comprise the consolidated statement of financial position as at December 31, 2025,
and the consolidated statement of comprehensive income, consolidated income statement, consolidated
statement of changes in equity and consolidated statement of cash flows for the financial year from
January 1 to December 31, 2025, and notes to the consolidated financial statements, including material
accounting policy information. In addition, we have audited the group management report of adidas AG,
which is combined with the Company's management report, for the financial year from January 1 to
December 31, 2025. In accordance with the German legal requirements, we have not audited the content
of those parts of the group management report listed in the "Other Information" section of our auditor's
report.
In our opinion, on the basis of the knowledge obtained in the audit,
─the accompanying consolidated financial statements comply, in all material respects, with the IFRS
Accounting Standards issued by the International Accounting Standards Board (IASB) (the IFRS
Accounting Standards) as adopted by the EU, and the additional requirements of German commercial law
pursuant to § [Article] 315e Abs. [paragraph] 1 HGB [Handelsgesetzbuch: German Commercial Code]
and, in compliance with these requirements, give a true and fair view of the assets, liabilities, and
financial position of the Group as at December 31, 2025, and of its financial performance for the
financial year from January 1 to December 31, 2025, and
─the accompanying group management report as a whole provides an appropriate view of the Group's
position. In all material respects, this group management report is consistent with the consolidated
financial statements, complies with German legal requirements and appropriately presents the
opportunities and risks of future development. Our audit opinion on the group management report does
not cover the content of those parts of the group management report listed in the "Other Information"
section of our auditor's report.
Pursuant to § 322 Abs. 3 Satz [sentence] 1 HGB, we declare that our audit has not led to any reservations
relating to the legal compliance of the consolidated financial statements and of the group management
report.
ANNUAL REPORT 2025
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2
3
4
5
6
TO OUR
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GROUP MANAGEMENT REPORT –
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ADDITIONAL
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411
Basis for the Audit Opinions
We conducted our audit of the consolidated financial statements and of the group management report in
accordance with § 317 HGB and the EU Audit Regulation (No. 537/2014, referred to subsequently as "EU
Audit Regulation") in compliance with German Generally Accepted Standards for Financial Statement Audits
promulgated by the Institut der Wirtschaftsprüfer [Institute of Public Auditors in Germany] (IDW). Our
responsibilities under those requirements and principles are further described in the "Auditor's
Responsibilities for the Audit of the Consolidated Financial Statements and of the Group Management
Report" section of our auditor's report. We are independent of the group entities in accordance with the
requirements of European law and German commercial and professional law, and we have fulfilled our other
German professional responsibilities in accordance with these requirements. In addition, in accordance
with Article 10 (2) point (f) of the EU Audit Regulation, we declare that we have not provided non-audit
services prohibited under Article 5 (1) of the EU Audit Regulation. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our audit opinions on the consolidated
financial statements and on the group management report.
Key Audit Matters in the Audit of the Consolidated Financial Statements
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the consolidated financial statements for the financial year from January 1 to December 31, 2025.
These matters were addressed in the context of our audit of the consolidated financial statements as a
whole, and in forming our audit opinion thereon; we do not provide a separate audit opinion on these
matters.
In our view, the matters of most significance in our audit were as follows:
1. Recoverability of inventories
2. Recognition of revenue, taking into account expected returns
Our presentation of these key audit matters has been structured in each case as follows:
1. Matter and issue
2. Audit approach and findings
3. Reference to further information
Hereinafter we present the key audit matters:
1. Recoverability of inventories
1 Inventories amounting to EUR 5,832 million (29% of total assets) are reported in the Company's
consolidated statement of financial position.
Inventories are initially recognized at cost, taking into account directly attributable incidental acquisition
costs and cost reductions. The carrying amount of recognized inventories must be reduced if the
inventories are damaged or (partially) obsolete and the expected net realizable values are less than the
costs.
ANNUAL REPORT 2025
1
2
3
4
5
6
TO OUR
SHAREHOLDERS
GROUP MANAGEMENT REPORT –
OUR COMPANY
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ADDITIONAL
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412
At the reporting date, the costs are compared against the net realizable values, which are determined by
deducting the directly attributable selling costs to be incurred prior to sale of the inventories from the sales
proceeds expected to be generated.
Net realizable values are calculated based on discretionary planning assumptions as to the sales proceeds
realizable in the ordinary course of business less necessary selling costs, which are derived on the basis of
historical observable data. Among other things, the age (seasonality) of the inventories and the selected
sales channel to be used in future sales are significant. The impairment test resulted in a write-down on
inventories as of the reporting date amounting to EUR 143 million in total.
The outcome of this valuation is dependent to a large extent on the estimates made by the executive
directors with respect to the inputs for the future net realizable values and other factors having an influence
on value, and is therefore subject to considerable uncertainty. Against this background and due to the
complex nature of the valuation, this matter was of particular significance in the context of our audit.
2 As part of our audit, we analyzed among other things the impairment testing process and assessed
identified controls with respect to implementation, appropriateness and effectiveness. Furthermore, we
evaluated the key inputs used to calculate net realizable values based on historical data and our
understanding of the business. We verified the accuracy of the calculation logic used in the impairment
test.
We were able to satisfy ourselves that the estimates and assumptions made by the executive directors in
connection with the proper measurement of inventories were sufficiently substantiated and documented.
3 The Company's disclosures relating to the accounting policies applied with respect to the "Inventories"
line item are contained in section 2 of the notes to the consolidated financial statements "Summary of
significant accounting policies". In addition, the disclosures on "inventories" are contained in section 7,
"Inventories" of the notes to the consolidated financial statements.
2. Recognition of revenue, taking into account expected returns
1 Revenue amounting to EUR 24,811 million was recognized in the Company's consolidated financial
statements.
Revenue is recognized from the sale of goods in the "Wholesale", "E-commerce" and "Own retail" sales
channels if the Company satisfies a performance obligation by transferring a specified asset to a customer.
An asset is deemed to have been transferred if the customer obtains control of that asset. Revenue is
recognized at a point in time in the amount to which the Company has a claim when the power to control an
asset is transferred.
Customers of the Company have the option, subject to certain conditions, of exchanging or returning goods
in exchange for a credit. The amounts for expected returns are estimated by the executive directors based
on past experience with respect to the historical returns rates and accrued from revenue as a provision for
returns.
The asset embodying the right to receive goods returned by the customer is measured at the carrying
amount of the respective inventories less settlement costs.
The revenue has a significant influence on the Group's net profit or loss for the year and represents one of
the most significant performance indicators for adidas. Due to the large transaction volume with respect to
the sale of merchandise in three different sales channels and the potential risk in general of notional
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revenue and the uncertainty with regard to estimates of expected returns, in our view the existence and
accrual of revenue from the sale of merchandise were of particular importance during our audit.
2 With respect to the audit of the existence and accrual of revenue, we first assessed the structure,
establishment and effectiveness of internal controls, including the functioning of IT-based controls with
respect to outgoing goods and the acceptance of goods, invoices and the payment settlement. In addition,
we reviewed the presentation of revenue recognition in the Group-wide accounting policy to assess whether
it complied with IFRS 15.
Furthermore, in the context of substantive audit procedures, we, among other things, obtained evidence (in
particular delivery certificates, invoices and receipts of payments) of the existence and accrual of revenue
in order to assess whether the recognized and accrued revenue was based on a corresponding shipment or
transfer of goods. In addition, we evaluated the mathematical correctness of the executive directors'
calculation of expected returns. We compared the expected returns against historical, sales channel-
specific returns rates and the returned merchandise recorded in the financial accounting records.
We were able to satisfy ourselves that the estimates and assumptions made by the executive directors in
connection with the proper accounting treatment of the revenue were sufficiently substantiated and
documented.
3 The Company's disclosures relating to the accounting policies applied with respect to the recognition of
revenue from merchandise are contained in section 2 of the notes to the consolidated financial statements
"Summary of significant accounting policies".
Other Information
The executive directors are responsible for the other information. The other information comprises the
following non-audited parts of the group management report:
─the non-financial statement to comply with Sections 289b to 289e HGB and with Sections 315b to 315c
HGB, which is included in the section "Sustainability Statement" of the group management report
─the disclosures marked as unaudited in section "Description of the main features of the internal control
and risk management system with respect to the group accounting process pursuant to § 315 Abs. 4
HGB" of the group management report.
─the section "Compliance Management System (adidas Fair Play)" of the group management report
The other information comprises further
─the statement on corporate governance pursuant to § 289f HGB and § 315d HGB
─all remaining parts of the annual report – excluding cross-references to external information – with the
exception of the audited consolidated financial statements, the audited group management report and
our auditor's report.
Our audit opinions on the consolidated financial statements and on the group management report do not
cover the other information, and consequently we do not express an audit opinion or any other form of
assurance conclusion thereon.
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414
In connection with our audit, our responsibility is to read the other information mentioned above and, in so
doing, to consider whether the other information
─is materially inconsistent with the consolidated financial statements, with the group management report
disclosures audited in terms of content or with our knowledge obtained in the audit, or
─otherwise appears to be materially misstated.
Responsibilities of the Executive Directors and the Supervisory Board for the Consolidated
Financial Statements and the Group Management Report
The executive directors are responsible for the preparation of the consolidated financial statements that
comply, in all material respects, with IFRS Accounting Standards as adopted by the EU and the additional
requirements of German commercial law pursuant to § 315e Abs. 1 HGB and that the consolidated
financial statements, in compliance with these requirements, give a true and fair view of the assets,
liabilities, financial position, and financial performance of the Group. In addition the executive directors are
responsible for such internal control as they have determined necessary to enable the preparation of
consolidated financial statements that are free from material misstatement, whether due to fraud (i.e.,
fraudulent financial reporting and misappropriation of assets) or error.
In preparing the consolidated financial statements, the executive directors are responsible for assessing
the Group's ability to continue as a going concern. They also have the responsibility for disclosing, as
applicable, matters related to going concern. In addition, they are responsible for financial reporting based
on the going concern basis of accounting unless there is an intention to liquidate the Group or to cease
operations, or there is no realistic alternative but to do so.
Furthermore, the executive directors are responsible for the preparation of the group management report
that, as a whole, provides an appropriate view of the Group's position and is, in all material respects,
consistent with the consolidated financial statements, complies with German legal requirements, and
appropriately presents the opportunities and risks of future development. In addition, the executive
directors are responsible for such arrangements and measures (systems) as they have considered
necessary to enable the preparation of a group management report that is in accordance with the
applicable German legal requirements, and to be able to provide sufficient appropriate evidence for the
assertions in the group management report.
The supervisory board is responsible for overseeing the Group's financial reporting process for the
preparation of the consolidated financial statements and of the group management report.
Auditor's Responsibilities for the Audit of the Consolidated Financial Statements and of the
Group Management Report
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as
a whole are free from material misstatement, whether due to fraud or error, and whether the group
management report as a whole provides an appropriate view of the Group's position and, in all material
respects, is consistent with the consolidated financial statements and the knowledge obtained in the audit,
complies with the German legal requirements and appropriately presents the opportunities and risks of
future development, as well as to issue an auditor's report that includes our audit opinions on the
consolidated financial statements and on the group management report.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with § 317 HGB and the EU Audit Regulation and in compliance with German Generally
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415
Accepted Standards for Financial Statement Audits promulgated by the Institut der Wirtschaftsprüfer (IDW)
will always detect a material misstatement. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these consolidated financial statements and this group
management report.
We exercise professional judgment and maintain professional skepticism throughout the audit. We also:
─Identify and assess the risks of material misstatement of the consolidated financial statements and of
the group management report, whether due to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis
for our audit opinions. The risk of not detecting a material misstatement resulting from fraud is higher
than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal controls.
─Obtain an understanding of internal control relevant to the audit of the consolidated financial statements
and of arrangements and measures (systems) relevant to the audit of the group management report in
order to design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an audit opinion on the effectiveness of the internal control and these arrangements and
measures (systems), respectively.
─Evaluate the appropriateness of accounting policies used by the executive directors and the
reasonableness of estimates made by the executive directors and related disclosures.
─Conclude on the appropriateness of the executive directors' use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are required to draw attention in the auditor's report to
the related disclosures in the consolidated financial statements and in the group management report or,
if such disclosures are inadequate, to modify our respective audit opinions. Our conclusions are based
on the audit evidence obtained up to the date of our auditor's report. However, future events or
conditions may cause the Group to cease to be able to continue as a going concern.
─Evaluate the overall presentation, structure and content of the consolidated financial statements,
including the disclosures, and whether the consolidated financial statements present the underlying
transactions and events in a manner that the consolidated financial statements give a true and fair view
of the assets, liabilities, financial position and financial performance of the Group in compliance with
IFRS Accounting Standards as adopted by the EU and the additional requirements of German commercial
law pursuant to § 315e Abs. 1 HGB.
─Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial
information of the entities or business units within the Group as a basis for forming audit opinions on the
consolidated financial statements and on the group management report. We are responsible for the
direction, supervision and review of the audit work performed for purposes of the group audit. We remain
solely responsible for our audit opinions.
─Evaluate the consistency of the group management report with the consolidated financial statements, its
conformity with German law, and the view of the Group's position it provides.
─Perform audit procedures on the prospective information presented by the executive directors in the
group management report. On the basis of sufficient appropriate audit evidence we evaluate, in
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416
particular, the significant assumptions used by the executive directors as a basis for the prospective
information and evaluate the proper derivation of the prospective information from these assumptions.
We do not express a separate audit opinion on the prospective information and on the assumptions used
as a basis. There is a substantial unavoidable risk that future events will differ materially from the
prospective information.
We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with the relevant
independence requirements, and communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate
threats to independence or safeguards applied.
From the matters communicated with those charged with governance, we determine those matters that
were of most significance in the audit of the consolidated financial statements of the current period and are
therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation
precludes public disclosure about the matter.
Other legal and regulatory requirements
Report on the Assurance on the Electronic Rendering of the Consolidated Financial Statements and the
Group Management Report Prepared for Publication Purposes in Accordance with § 317 Abs. 3a HGB
Assurance Opinion
We have performed assurance work in accordance with § 317 Abs. 3a HGB to obtain reasonable assurance
as to whether the rendering of the consolidated financial statements and the group management report
(hereinafter the "ESEF documents") contained in the electronic file adidasag-2025-12-31-1-de.xbri and
prepared for publication purposes complies in all material respects with the requirements of § 328 Abs. 1
HGB for the electronic reporting format ("ESEF format"). In accordance with German legal requirements,
this assurance work extends only to the conversion of the information contained in the consolidated
financial statements and the group management report into the ESEF format and therefore relates neither
to the information contained within these renderings nor to any other information contained in the electronic
file identified above.
In our opinion, the rendering of the consolidated financial statements and the group management report
contained in the electronic file identified above and prepared for publication purposes complies in all
material respects with the requirements of § 328 Abs. 1 HGB for the electronic reporting format. Beyond
this assurance opinion and our audit opinion on the accompanying consolidated financial statements and
the accompanying group management report for the financial year from January 1 to December 31, 2025
contained in the "Report on the Audit of the Consolidated Financial Statements and of the Group
Management Report" above, we do not express any assurance opinion on the information contained within
these renderings or on the other information contained in the electronic file identified above.
Basis for the Assurance Opinion
We conducted our assurance work on the rendering of the consolidated financial statements and the group
management report contained in the electronic file identified above in accordance with § 317 Abs. 3a HGB
and the IDW Assurance Standard: Assurance Work on the Electronic Rendering of Financial Statements and
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417
Management Reports, Prepared for Publication Purposes in Accordance with § 317 Abs. 3a HGB (IDW AsS
410 (06.2022)) and the International Standard on Assurance Engagements 3000 (Revised). Our
responsibility in accordance therewith is further described in the "Group Auditor's Responsibilities for the
Assurance Work on the ESEF Documents" section. Our audit firm has applied the IDW Standard on Quality
Management 1: Requirements for Quality Management in the Audit Firm (IDW QMS 1 (09.2022)).
Responsibilities of the Executive Directors and the Supervisory Board for the ESEF Documents
The executive directors of the Company are responsible for the preparation of the ESEF documents
including the electronic rendering of the consolidated financial statements and the group management
report in accordance with § 328 Abs. 1 Satz 4 Nr. [number] 1 HGB and for the tagging of the consolidated
financial statements in accordance with § 328 Abs. 1 Satz 4 Nr. 2 HGB.
In addition, the executive directors of the Company are responsible for such internal control as they have
considered necessary to enable the preparation of ESEF documents that are free from material non-
compliance with the requirements of § 328 Abs. 1 HGB for the electronic reporting format, whether due to
fraud or error.
The supervisory board is responsible for overseeing the process for preparing the ESEF documents as part
of the financial reporting process.
Group Auditor's Responsibilities for the Assurance Work on the ESEF Documents
Our objective is to obtain reasonable assurance about whether the ESEF documents are free from material
non-compliance with the requirements of § 328 Abs. 1 HGB, whether due to fraud or error. We exercise
professional judgment and maintain professional skepticism throughout the assurance work. We also:
─Identify and assess the risks of material non-compliance with the requirements of § 328 Abs. 1 HGB,
whether due to fraud or error, design and perform assurance procedures responsive to those risks, and
obtain assurance evidence that is sufficient and appropriate to provide a basis for our assurance
opinion.
─Obtain an understanding of internal control relevant to the assurance work on the ESEF documents in
order to design assurance procedures that are appropriate in the circumstances, but not for the purpose
of expressing an assurance opinion on the effectiveness of these controls.
─Evaluate the technical validity of the ESEF documents, i.e., whether the electronic file containing the
ESEF documents meets the requirements of the Delegated Regulation (EU) 2019/815 in the version in
force at the date of the consolidated financial statements on the technical specification for this
electronic file.
─Evaluate whether the ESEF documents provide an XHTML rendering with content equivalent to the
audited consolidated financial statements and to the audited group management report.
─Evaluate whether the tagging of the ESEF documents with Inline XBRL technology (iXBRL) in accordance
with the requirements of Articles 4 and 6 of the Delegated Regulation (EU) 2019/815, in the version in
force at the date of the consolidated financial statements, enables an appropriate and complete
machine-readable XBRL copy of the XHTML rendering.
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418
Further Information pursuant to Article 10 of the EU Audit Regulation
We were elected as group auditor by the annual general meeting on May 15, 2025. We were engaged by
the supervisory board on December 11, 2025. We have been the group auditor of adidas AG,
Herzogenaurach, without interruption since the financial year 2023.
We declare that the audit opinions expressed in this auditor's report are consistent with the additional
report to the audit committee pursuant to Article 11 of the EU Audit Regulation (long-form audit report).
Reference to an other matter – use of the auditor's report
Our auditor's report must always be read together with the audited consolidated financial statements and
the audited group management report as well as the assured ESEF documents. The consolidated financial
statements and the group management report converted to the ESEF format – including the versions to be
filed in the company register – are merely electronic renderings of the audited consolidated financial
statements and the audited group management report and do not take their place. In particular, the
"Report on the Assurance on the Electronic Rendering of the Consolidated Financial Statements and the
Group Management Report Prepared for Publication Purposes in Accordance with § 317 Abs. 3a HGB" and
our assurance opinion contained therein are to be used solely together with the assured ESEF documents
made available in electronic form.
German public auditor responsible for the engagement
The German Public Auditor responsible for the engagement is Christian Landau."
Nuremberg, 24 February 2026
PricewaterhouseCoopers GmbH
Wirtschaftsprüfungsgesellschaft
sgd. Rainer Kroker
sgd. Christian Landau
Wirtschaftsprüfer
Wirtschaftsprüfer
[German public auditor]
[German public auditor]
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CONSOLIDATED
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ADDITIONAL
INFORMATION
419
Assurance Report of the Independent German Public
Auditor on a Limited Assurance Engagement in Relation
to the Group Sustainability Statement
To adidas AG, Herzogenaurach
Assurance Conclusion
We have conducted a limited assurance engagement on the group sustainability statement of adidas AG,
Herzogenaurach, (hereinafter the „Company“) included in section "Sustainability Statement" of the group
management report, which is combined with the Company's management report, for the financial year from
1 January to 31 December 2025 (hereinafter the "Group Sustainability Statement"). The Group
Sustainability Statement has been prepared to fulfil the requirements of Directive (EU) 2022/2464 of the
European Parliament and of the Council of 14 December 2022 (Corporate Sustainability Reporting
Directive, CSRD) and Article 8 of Regulation (EU) 2020/852 as well as §§ [Articles] 289b to 289e HGB
[Handelsgesetzbuch: German Commercial Code] and §§ 315b to 315c HGB to prepare a combined non-
financial statement.
Based on the procedures performed and the evidence obtained, nothing has come to our attention that
causes us to believe that the accompanying Group Sustainability Statement is not prepared, in all material
respects, in accordance with the requirements of the CSRD and Article 8 of Regulation (EU) 2020/852, §
315c in conjunction with §§ 289c to 289e HGB to prepare a combined non-financial statement as well as
with the supplementary criteria presented by the executive directors of the Company. This assurance
conclusion includes that no matters have come to our attention that cause us to believe:
─that the accompanying Group Sustainability Statement does not comply, in all material respects, with the
European Sustainability Reporting Standards (ESRS), including that the process carried out by the
Company to identify the information to be included in the Group Sustainability Statement (hereinafter the
“materiality assessment”) is not, in all material respects, in accordance with the description set out in
section "IRO-1 – Description of the process to identify and assess material impacts, risks and
opportunities" of the Group Sustainability Statement, or
─that the disclosures set out in section "EU Taxonomy" of the Group Sustainability Statement do not
comply, in all material respects, with Article 8 of Regulation (EU) 2020/852.
Basis for the Assurance Conclusion
We conducted our limited assurance engagement in accordance with the International Standard on
Assurance Engagements (ISAE) 3000 (Revised): Assurance Engagements Other Than Audits or Reviews of
Historical Financial Information, issued by the International Auditing and Assurance Standards Board
(IAASB).
The procedures in a limited assurance engagement vary in nature and timing from, and are less in extent
than for, a reasonable assurance engagement. Consequently, the level of assurance obtained is
substantially lower than the assurance that would have been obtained had a reasonable assurance
engagement been performed.
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420
Our responsibilities under ISAE 3000 (Revised) are further described in the "German Public Auditor's
Responsibilities for the Assurance Engagement on the Group Sustainability Statement" section.
We are independent of the Company in accordance with the requirements of European law and German
commercial and professional law, and we have fulfilled our other German professional responsibilities in
accordance with these requirements. Our audit firm has complied with the quality management system
requirements of the IDW Standard on Quality Management: Requirements for Quality Management in the
Audit Firm (IDW QMS 1 (09.2022)) issued by the Institut der Wirtschaftsprüfer (Institute of Public Auditors
in Germany; IDW). We believe that the evidence we have obtained is sufficient and appropriate to provide a
basis for our assurance conclusion.
Responsibility of the Executive Directors and the Supervisory Board for the
Group Sustainability Statement
The executive directors are responsible for the preparation of the Group Sustainability Statement in
accordance with the requirements of the CSRD and the relevant German legal and other European
regulations as well as with the supplementary criteria presented by the executive directors of the Company.
They are also responsible for the design, implementation and maintenance of such internal controls that
they have considered necessary to enable the preparation of a Group Sustainability Statement in
accordance with these regulations that is free from material misstatement, whether due to fraud (i.e.,
manipulation of the Group Sustainability Statement) or error.
This responsibility of the executive directors includes establishing and maintaining the materiality
assessment process, selecting and applying appropriate reporting policies for preparing the Group
Sustainability Statement, as well as making assumptions and estimates and ascertaining forward-looking
information for individual sustainability-related disclosures.
The supervisory board is responsible for overseeing the process for the preparation of the Group
Sustainability Statement.
Inherent Limitations in the Preparation of the Group Sustainability
Statement
The CSRD and the relevant German statutory and other European regulations contain wording and terms
that are still subject to considerable interpretation uncertainties and for which no authoritative,
comprehensive interpretations have yet been published. As such wording and terms may be interpreted
differently by regulators or courts, the legal conformity of measurements or evaluations of sustainability
matters based on these interpretations is uncertain.
These inherent limitations also affect the assurance engagement on the Group Sustainability Statement.
German Public Auditor's Responsibilities for the Assurance Engagement on
the Group Sustainability Statement
Our objective is to express a limited assurance conclusion, based on the assurance engagement we have
conducted, on whether any matters have come to our attention that cause us to believe that the Group
Sustainability Statement has not been prepared, in all material respects, in accordance with the CSRD and
the relevant German legal and other European regulations as well as with the supplementary criteria
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CONSOLIDATED
FINANCIAL STATEMENTS
ADDITIONAL
INFORMATION
421
presented by the executive directors of the Company, and to issue an assurance report that includes our
assurance conclusion on the Group Sustainability Statement.
As part of a limited assurance engagement in accordance with ISAE 3000 (Revised), we exercise
professional judgment and maintain professional skepticism. We also:
─obtain an understanding of the process to prepare the Group Sustainability Statement, including the
materiality assessment process carried out by the Company to identify the information to be included in
the Group Sustainability Statement.
─identify disclosures where a material misstatement due to fraud or error is likely to arise, design and
perform procedures to address these disclosures and obtain limited assurance to support the assurance
conclusion. The risk of not detecting a material misstatement resulting from fraud is higher than the risk
of not detecting a material misstatement resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misleading representations, or the override of internal controls. In addition, the
risk of not detecting a material misstatement within value chain information from sources not under the
control of the company (value chain information) is generally higher than the risk of not detecting a
material misstatement of value chain information from sources under the control of the company, as
both the executive directors of the Company and we, as assurance practitioners, are ordinarily subject to
limitations on direct access to the sources of value chain information.
─consider the forward-looking information, including the appropriateness of the underlying assumptions.
There is a substantial unavoidable risk that future events will differ materially from the forward-looking
information.
Summary of the Procedures Performed by the German Public Auditor
A limited assurance engagement involves the performance of procedures to obtain evidence about the
sustainability information. The nature, timing and extent of the selected procedures are subject to our
professional judgement.
In conducting our limited assurance engagement, we have, amongst other things:
─evaluated the suitability of the criteria as a whole presented by the executive directors in the Group
Sustainability Statement.
─inquired of the executive directors and relevant employees involved in the preparation of the Group
Sustainability Statement about the preparation process, including the materiality assessment process
carried out by the company to identify the information to be included in the Group Sustainability
Statement, and about the internal controls relating to this process.
─evaluated the reporting policies used by the executive directors to prepare the Group Sustainability
Statement.
─evaluated the reasonableness of the estimates and the related disclosures provided by the executive
directors. If, in accordance with the ESRS, the executive directors estimate the value chain information to
be reported for a case in which the executive directors are unable to obtain the information from the
value chain despite making reasonable efforts, our assurance engagement is limited to evaluating
whether the executive directors have undertaken these estimates in accordance with the ESRS and
assessing the reasonableness of these estimates, but does not include identifying information in the
value chain that the executive directors have been unable to obtain.
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INFORMATION
422
─performed analytical procedures and made inquiries in relation to selected information in the Group
Sustainability Statement.
─considered the presentation of the information in the Group Sustainability Statement.
─considered the process for identifying taxonomy-eligible and taxonomy-aligned economic activities and
the corresponding disclosures in the Group Sustainability Statement.
Restriction of Use
We draw attention to the fact that the assurance engagement was conducted for the Company’s purposes
and that the report is intended solely to inform the Company about the result of the assurance
engagement. Accordingly, the report is not intended to be used by third parties for making (financial)
decisions based on it. Our responsibility is solely towards the Company. We do not accept any
responsibility, duty of care or liability towards third parties.
Nuremberg, 24 February 2026
PricewaterhouseCoopers GmbH
Wirtschaftsprüfungsgesellschaft
sgd. Rainer Kroker
sgd. Christian Landau
Wirtschaftsprüfer
Wirtschaftsprüfer
[German public auditor]
[German public auditor]
ANNUAL REPORT 2025
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2
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TO OUR
SHAREHOLDERS
GROUP MANAGEMENT REPORT –
OUR COMPANY
GROUP MANAGEMENT REPORT –
FINANCIAL REVIEW
GROUP MANAGEMENT REPORT –
SUSTAINABILITY STATEMENT
CONSOLIDATED
FINANCIAL STATEMENTS
ADDITIONAL
INFORMATION
423
6
ADDITIONAL
INFORMATION
Ten-Year Overview
425
Glossary
427
Declaration of Support
430
Financial Calendar
434
ANNUAL REPORT 2025
Ten-year overview
Income Statement Data (€ in millions)
Net sales3,4
24,811
23,683
21,427
22,511
21,234
18,435
23,640
21,915
21,218
18,483
Gross profit3,4
12,804
12,026
10,184
10,644
10,765
9,222
12,293
11,363
10,703
9,100
Royalty and commission income3,4
81
81
83
112
86
61
154
129
115
105
Other operating income3,4,5
41
174
71
173
28
42
56
48
17
119
Other operating expenses3,4,5
10,871
10,945
10,070
10,260
8,892
8,580
9,843
9,172
8,766
7,741
EBITDA3,4
3,124
2,465
1,358
1,874
3,066
1,967
3,845
2,882
2,511
1,953
Operating profit3,4
2,056
1,337
268
669
1,986
746
2,660
2,368
2,070
1,582
Net financial result3,4
(236)
(215)
(203)
(281)
(133)
(167)
(102)
10
(47)
(46)
Income before taxes3,4
1,820
1,121
65
388
1,852
578
2,558
2,378
2,023
1,536
Income taxes3,4,6
443
297
124
134
360
117
640
669
668
454
Net income/(loss) from continuing operations
1,377
824
(58)
254
1,492
461
1,918
1,709
1,354
1,082
Income Statement Ratios
Gross margin3,4
51.6%
50.8%
47.5%
47.3%
50.7%
50.0%
52.0%
51.8%
50.4%
49.2%
Operating margin3,4
8.3%
5.6%
1.3%
3.0%
9.4%
4.0%
11.3%
10.8%
9.8%
8.6%
Effective tax rate3,4,6
24.3%
26.5%
189.4%
34.5%
19.4%
20.2%
25.0%
28.1%
29.3%
29.6%
Net income/(loss) from continuing operations in %
of net sales
5.6%
3.5%
(0.3%)
1.1%
7.0%
2.5%
8.1%
7.8%
6.4%
5.9%
Net Sales by Product Division7 (€ in millions)
Footwear3,4
14,232
13,977
12,139
12,287
11,336
10,129
13,521
12,783
12,427
10,132
Apparel3,4
8,764
7,937
7,806
8,731
8,710
7,315
8,963
8,223
7,747
7,352
Accessories3,4
1,815
1,779
1,483
1,493
1,187
991
1,156
910
1,044
999
Balance Sheet Data (€ in millions)
Total assets
20,262
20,655
18,020
20,296
22,137
21,053
20,680
15,612
14,019
15,176
Inventories
5,832
4,989
4,525
5,973
4,009
4,397
4,085
3,445
3,692
3,763
Receivables and other current assets
4,528
4,460
3,819
4,961
4,072
3,763
4,338
3,734
3,277
3,607
Working capital
5,556
4,306
1,766
2,475
4,978
3,328
2,179
2,979
2,354
2,121
Adjusted (net borrowings)/net cash8,9
4,331
3,622
(4,518)
(6,047)
(2,082)
(2,424)
(2,676)
959
484
(103)
Shareholders’ equity
5,776
5,476
4,580
4,991
7,519
6,454
6,796
6,377
6,032
6,472
Balance Sheet Ratios
Adjusted net borrowings/EBITDA3,4,8,9
1.4
1.5
3.3
3.2
0.7
1.2
0.7
(0.3)
(0.2)
0.1
Average operating working capital in % of net
sales3,4,9
23.0%
19.7%
25.7%
24.0%
20.0%
25.3%
18.1%
19.0%
20.4%
21.1%
Financial leverage8,9,10
75.0%
66.1%
98.6%
121.2%
27.7%
37.6%
39.4%
(15.0%)
(8.0%)
1.6%
Equity ratio10
28.5%
26.5%
25.4%
24.6%
34.0%
30.7%
32.9%
40.8%
43.0%
42.6%
Return on equity10, 11
23.2%
14.0%
(1.6%)
12.3%
28.1%
6.7%
29.1%
26.7%
18.2%
15.7%
Return on capital employed3,4,11
20.0%
14.8%
2.8%
5.3%
21.2%
8.0%
27.9%
45.1%
41.2%
24.2%
Data per Share
Share price at year-end (in €)
169.05
236.80
184.16
127.46
253.20
297.90
289.80
182.40
167.15
150.15
Basic earnings (in €)3,4,6
7.46
4.24
(0.67)
1.25
7.47
2.31
9.70
8.46
7.05
5.39
Diluted earnings (in €)3,4,6
7.46
4.24
(0.67)
1.25
7.47
2.31
9.70
8.45
7.00
5.29
Price/earnings ratio at year-end3,4,6
22.7
55.9
n.a.
102.4
33.9
128.9
29.9
21.6
23.7
27.8
Market capitalization at year-end (€ in millions)
30,203
42,280
32,882
22,756
48,512
58,110
56,792
36,329
34,075
30,254
Ten-year overview
2025
2024
2023
2022
2021
2020
2019
20181
20172
2016
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Net cash generated from/(used in) operating
activities3,4,12,13
4.21
16.30
14.28
(2.15)
14.79
7.00
14.26
13.31
8.14
6.73
Dividend (in €)14
2.80
2.00
0.70
0.70
3.30
3.00
0.00
3.35
2.60
2.00
Number of shares outstanding at year-end
(in thousands)
178.665
178.549
178.549
178.537
191.595
195.066
195.969
199.171
203.861
201.489
Employees
Number of employees at year-end3,4,15
64,938
62,035
59,030
59,258
61,401
62,285
65,194
57,016
56,888
58,902
Personnel expenses (€ in millions)3,4
3,197
3,184
2,964
2,856
2,659
2,325
2,720
2,481
2,549
2,373
1 Application of IFRS 16 as of January 1, 2019. Prior-year figures are not restated.
2 2017 restated according to IAS 8 in the 2018 consolidated financial statements.
3 2019, 2018, 2017, and 2016 figures reflect continuing operations as a result of the divestiture of the Rockport, TaylorMade, Adams Golf, Ashworth, and CCM Hockey businesses.
4 2022, 2021, and 2020 figures reflect continuing operations as a result of the divestiture of the Reebok business.
5 Figures reflect the adjusted consolidated income statement structure introduced in 2018.
6 2017 including negative one-time tax impact of € 76 million.
7 2024 adjusted due to a reclassification within the product divisions.
8 First-time application of adjusted net borrowings as of 2020. Figures since 2019 were restated to reflect methodology revision in 2022.
9 2021 figures reflect the reclassification of the Reebok business to assets or liabilities held for sale.
10 Based on shareholders’ equity.
11 Includes continuing and discontinued operations.
12 Since 2018 figures reflect presentation of interest paid within cash flows from financing activities. Prior-year figures are not restated.
13 2023 adjusted due to hyperinflation accounting in 2024.
14 Value for the reporting year subject to Annual General Meeting approval.
15 2019 figure restated due to inclusion of temporary contracts of up to six months (2019 headcounts excluding temporary contracts of up to six months: 59,333). Prior-year figures are not
restated.
Ten-year overview
2025
2024
2023
2022
2021
2020
2019
20181
20172
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Glossary
/ A
Accessories
A product category that comprises equipment that is used rather than worn by the consumer, such as bags,
balls, sunglasses, or fitness equipment.
adiClub
‘adiClub’ is a membership program that helps us deepen the relationship with our consumers. Linking all
adidas apps, events, communities, and channels into one single profile, the program rewards members
with points for interacting with the brand, e.g., when making a purchase or using the ‘adidas Running’ or
‘adidas Training’ apps. Depending on the number of points, exclusive benefits are unlocked, including
access to hype sneaker and apparel drops or invitations to special events.
Athleisure
The term is composed of the words athletic and leisure. It describes a fashion trend of sportswear no
longer being just meant for training but increasingly shaping everyday clothing.
/ C
Cash pools/Cash pooling
A cash management technique for physical concentration of cash. Cash pooling allows adidas to combine
credit and debit positions from various accounts and several subsidiaries into one central account. This
technique supports our in-house bank concept where advantage is taken of any surplus funds of
subsidiaries to cover cash requirements of other subsidiaries, thus reducing external financing needs and
optimizing our net interest expenses.
Concession corners
Concession corners are dedicated adidas brand spaces within our customers’ stores. They are managed by
adidas’ own retail team.
Controlled space
Includes own retail business, mono-branded franchise stores, shop-in-shops, joint ventures with retail
partners, and co-branded stores. Controlled space offers a high level of brand control and ensures optimal
product offering and presentation according to brand requirements.
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/ I
Independent manufacturing partners
We outsource almost 100% of production to independent manufacturing partners. They are defined on a
supplier group level, which means one independent manufacturing partner might produce in several
manufacturing facilities. The majority of our independent manufacturing partners are located in Asia.
/ L
Lifestyle category
Under the ‘Lifestyle’ category, we subsume all footwear and apparel products as well as accessories that
are born from sport and worn for style. ‘adidas Originals,’ which is inspired by sport and worn on the street,
is at the heart of the ‘Lifestyle’ category.
/ M
Marketing expenditure
Expenditure that relates to point-of-sale and marketing investments. While point-of-sale investments include
expenses for advertising and promotion initiatives at the point of sale as well as store fittings and furniture,
marketing investments relate to sponsorship contracts with teams and individual athletes as well as to
advertising, events, and other communication activities. Marketing overhead expenses are not included in
marketing expenditure.
/ N
Net-zero
As per SBTi, net-zero GHG emissions are achieved when human-caused GHG emissions are balanced by
removing the same quantity of emissions from the atmosphere over a specified period (‘net-zero’ future).
This is necessary at the global level to stabilize temperature increase at 1.5°C. In line with the SBTi criteria,
we aim to achieve net-zero by cutting all our possible GHG emissions (by more than 90% against the
baseline year 2022) through direct GHG emission reduction actions and neutralizing the residual GHG
emissions through permanent carbon removal and storage.
/ O
Operating overhead expenses
Expenses that are not directly attributable to the products or services sold, such as distribution and selling
as well as general and administration costs, but not including marketing and point-of-sale expenses.
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/ P
Performance category
Under the ‘Performance’ category, we subsume all footwear and apparel products as well as accessories
that are of a more technical nature, built for sport and worn for sport. These are, among others, products
from our most important sport categories: Football, Training, Running, and Outdoor.
Per- and polyfluoroalkyl substances (PFAS)
Meanwhile commonly understood as an established term, aligned with the OECD definition, for the multi-
thousand substance group formerly communicated as ‘PFCs.’
Polybags (LDPE)
A type of product transport packaging made of recycled low-density polyethylene (‘LDPE’) that offers a more
sustainable option to virgin plastic polybags, as they have a lower environmental footprint than conventional
bags and most alternatives. Recycled LDPE polybags meet our quality and performance standards to
effectively protect our products during shipping and handling, are available globally, and can be recycled via
existing waste streams.
Promotion partnerships
Partnerships with events, associations, leagues, clubs, and individual athletes. In exchange for the services
of promoting the company’s brands, the party is provided with products and/or cash and/or promotional
materials.
/ T
Terrace range
Collection of shoes that were initially designed for indoor sports. With their rubber sole, the player had a
better grip on smooth surfaces. Since many years, they have been classics of the ‘adidas Originals’ shoe
line, and include the Gazelle, Samba, and Spezial.
/ W
Wet processes
Wet processes are defined as water-intense processes, such as dyeing and finishing of materials.
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Declaration of Support
adidas AG declares support, except in the case of political risk, that the companies listed below are able to
meet their contractual liabilities. This declaration replaces the declaration dated February 20, 2025, which
is no longer valid. The declaration of support automatically ceases from the time that a company is no
longer a subsidiary of adidas AG.
adidas (China) Ltd., Shanghai, China
adidas (Cyprus) Limited, Limassol, Cyprus
adidas (Ireland) Limited, Kildare, Ireland
adidas (Malaysia) Sdn. Bhd., Petaling Jaya, Malaysia
adidas (Mauritius) Limited (formerly: Reebok (Mauritius) Company Limited), Port Louis, Mauritius
adidas (South Africa) (Pty) Ltd., Cape Town, South Africa
adidas (Suzhou) Co., Ltd., Suzhou, China
adidas (Thailand) Co., Ltd., Bangkok, Thailand
adidas (UK) Limited, Stockport, Great Britain
adidas America, Inc., Portland, Oregon, USA
adidas Arabia Trading, Riyadh, Saudi Arabia
adidas Argentina S.A., Buenos Aires, Argentina
adidas Australia Pty Limited, Mulgrave, Australia
adidas Austria GmbH, Klagenfurt, Austria
adidas Baltics SIA, Riga, Latvia
adidas Beteiligungsgesellschaft mbH
adidas Benelux B.V., Amsterdam, Netherlands
adidas Budapest Kft., Budapest, Hungary
adidas Bulgaria EAD, Sofia, Bulgaria
adidas Business Services (Dalian) Limited, Dalian, China
adidas Business Services, Lda., Moreira da Maia, Portugal
adidas Canada Limited, Woodbridge, Ontario, Canada
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adidas CDC Immobilieninvest GmbH, Herzogenaurach, Germany
adidas Chile Limitada, Santiago de Chile, Chile
adidas Colombia Ltda., Bogotá, Colombia
adidas CR s.r.o., Prague, Czech Republic
adidas Croatia d.o.o., Zagreb, Croatia
adidas Danmark A/S, Them, Denmark
adidas de Mexico, S.A. de C.V., Mexico City, Mexico
adidas do Brasil Ltda., São Paulo, Brazil
adidas Emerging Markets FZE, Dubai, United Arab Emirates
adidas Emerging Markets L.L.C, Dubai, United Arab Emirates
adidas España S.A.U., Zaragoza, Spain
adidas France S.a.r.l., Paris, France
adidas Hellas Single Member S.A., Athens, Greece
adidas Holdings LLC, Wilmington, Delaware, USA
adidas Hong Kong Limited, Hong Kong, China
adidas Imports & Exports Ltd., Cairo, Egypt
adidas India Marketing Private Limited, New Delhi, India
adidas Industrial, S.A. de C.V., Mexico City, Mexico
adidas Indy, LLC, Wilmington, Delaware, USA
adidas Insurance & Risk Consultants Gmbh, Herzogenaurach, Germany
adidas International B.V., Amsterdam, Netherlands
adidas International Marketing B.V., Amsterdam, Netherlands
adidas International Property Holding B.V., Amsterdam, Netherlands
adidas International Re DAC, Dublin, Ireland
adidas International Trading AG, Lucerne, Switzerland
adidas International, Inc., Portland, Oregon, USA
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adidas Israel Ltd., Holon, Israel
adidas Italy S.p.A., Monza, Italy
adidas Japan K.K., Tokyo, Japan
adidas Korea LLC., Seoul, Korea
adidas Latin America, S.A., Panama City, Panama
adidas LLP, Almaty, Republic of Kazakhstan
adidas Logistics (Tianjin) Co., Ltd., Tianjin, China
adidas Morocco LLC, Casablanca, Morocco
adidas New Zealand Limited, Auckland, New Zealand
adidas Norge AS, Oslo, Norway
adidas North America, Inc., Wilmington, Delaware, USA
adidas Perú S.A.C., Lima, Peru
adidas Poland Sp. z o.o., Warsaw, Poland
adidas Portugal – Artigos de Desporto, S.A., Lisbon, Portugal
adidas Romania S.R.L., Bucharest, Romania
adidas Serbia DOO Beograd, Belgrade, Serbia
adidas Singapore Pte Ltd, Singapore, Singapore
adidas Slovakia s.r.o., Bratislava, Slovak Republic
adidas Sourcing El Salvador, S.A. de C.V., Antiguo Cuscatlán, El Salvador
adidas Sourcing Limited, Hong Kong, China
adidas Spor Malzemeleri Satis ve Pazarlama A.S., Istanbul, Turkey
adidas Sport Gmbh, Lucerne, Switzerland
adidas Sporting Goods Ltd., Cairo, Egypt
adidas Sports (China) Co., Ltd., Shanghai, China
adidas Sports Goods (Shanghai) Co., Ltd., Shanghai, China
adidas Suomi Oy, Vantaa, Finland
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adidas Sverige Aktiebolag, Solna, Sweden
adidas Taiwan Limited, Taipei
adidas Technical Services (Cambodia) Co., Phnom Penh, Cambodia
adidas Technical Services Private Limited, Gurugam, India
adidas Technical Services Vietnam Limited Company, Ho Chi Minh City, Vietnam
adidas Trading (Far East) Limited (formerly: Reebok Trading (Far East) Limited), Hong Kong, China
adidas Trading (Shanghai) Co., Ltd.
adidas Trgovina d.o.o., Ljubljana, Slovenia
adidas Ventures B.V., Amsterdam, Netherlands
adidas Vietnam Company Limited, Ho Chi Minh City, Vietnam
Concept Sport, S.A., Panama City, Panama
PT adidas Indonesia, Jakarta, Indonesia
PT adidas Retail Indonesia, Jakarta, Indonesia
SC 'adidas-Ukraine', Kiev, Ukraine
Spartanburg DC, Inc., North Charleston, South Carolina, USA
Tafibal S.A., Montevideo, Uruguay
Trafford Park DC Limited, Stockport, Great Britain
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Financial Calendar 2026
April 29, 2026
First quarter results
May 7, 2026
Annual General Meeting
July 30, 2026
First half results
October 29, 2026
Nine months results
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Contact
Adi-Dassler-Str. 1
91074 Herzogenaurach
Germany
Tel + 49 (0) 91 32 84 – 0
► ADIDAS-GROUP.COM
adidas is a member of DIRK
(German Investor Relations Association)
Investor Relations
investor.relations@adidas.com
► ADIDAS-GROUP.COM/INVESTORS
Concept
nexxar, Vienna
Design and Realization
nexxar, Vienna
© ADIDAS 2026
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