Adidas was placed sixth in the entire S&P Global Rating Universe due to its strong preparedness score (+6) giving the company an overall ESG evaluation Score of 85.
The S&P Global Ratings’ ESG Evaluation assesses a company’s ESG performance (ESG profile score) and ability to prepare for potential future risks and opportunities (preparedness score). The ESG profile score and preparedness score sum up to the final ESG Evaluation Score that allows comparison with other entities globally, across sectors. The highest score of 100 indicates the lowest level of risk.
Martin Shankland, member of the adidas executive board responsible for global operations, said: “We have doubled down on our commitment to sustainability as a focus area in our ‘own the game’ strategy and are proud t osee this being recognised externally.”
He added: “The results underline our leadership approach to manage sustainability across all dimensions and the entire company. We are convinced that the continued integration of sustainability into our strategy will support ongoing future success of adidas – in the interest of all stakeholders.”
S&P emphasised Adidas’s industry-leading approach to innovation, supply chain management and consumer engagement.
In the assessment, credit was given to the company’s ambitions to scale the use of sustainable materials, to expand circular services and deliver against ambitious net-zero emission targets.
On top of the company’s strong control mechanisms over its supply chain ensuring fair and safe labour practices, the analysis also highlighted the integration of a sustainability target into the compensation system of the executive board.
The interaction between the supervisory board and the executive board was seen to support the overall strategy execution.