Adidas scores badly for workers' rights
Adidas has faced multiple criticisms over workers’ rights in recent years.
The company was linked to major violations during the Covid-19 pandemic, after factories refused to pay workers when they shut down due to the pandemic. According to a 2021 Public Eye report, “Cambodian garment workers producing goods for international fashion and sportswear brands, such as Adidas, VF, Target, Nike and Gap, were deprived of an estimated US$109 million in wages during the April and May 2021 national lockdown.”
Adidas was linked to the largest wage theft in all factories checked. Over 30,000 workers across eight Adidas supplier factories lost a collected US $11.7 million, or US $387 per worker, the report found. Adidas rejects the allegations, and stated that throughout the pandemic it “has been committed to fair labor practices, fair wages and safe working conditions throughout its global supply chain”.
More recently, in 2023, advocacy group Clean Clothes Campaign accused Adidas of union busting in Myanmar. The organisation found that a factory supplying Adidas fired multiple workers in 2022 after 2,000 workers went on strike demanding better working conditions, higher wages and respect for their right to unionise.
Adidas scores very badly in Ethical Consumer’s workers' rights rating overall.
Adidas and its climate action
Adidas has a mixed record on the climate.
The company reports on emissions across its supply chain and has set a target to reduce its footprint by 90% by 2050, compared to 2022. It states that it is phasing out coal in its supply chain, scaling the use of low-carbon materials, collaborating with suppliers to adopt energy-efficient equipment and processes, and expanding its use of renewable energy.
However, it has also recently been accused of greenwashing, with a German court in April 2025 finding Adidas guilty for failing to fully detail how it would achieve “climate neutrality”. The court found that many of its climate claims were vague, and lacked defined pathways or disclosures.
Its approach to sustainable materials is also mixed. While 99% of its polyester was recycled in 2025 – its most recent year of reporting – it was not deemed to be taking significant steps towards recyclable, biodegradable, or circular footwear. Much of its footwear is destined to end up in landfill, or polluting the world’s biggest waste dumps – Adidas has been named as one of the most found brands on the beaches of Accra, Ghana in recent years.
Poor record on tax for Adidas
Adidas scores very badly in its tax conduct rating. Adidas says that it “acts as a responsible global corporate tax citizen”. However, Ethical Consumer found that it had multiple high risk subsidies in tax havens including the Netherlands and Panama, and that it had not provided an explanation for these.
Meanwhile, the company provides excessive pay for its directors. In 2025, its CEO received 8.89m euros (approximately £7.51m).
Animal welfare
Adidas uses animal products including down, leather and wool, with some adequate policies to protect animal welfare in its supply chain.
Its down is 100% recycled or certified by the Textile Exchange’s Responsible Down Standard (RDS) – which ensures better animal welfare. All wool is certified by the Textile Exchange Responsible Wool Standard (RWS), and it also prohibits the practice of mulesing – a surgical procedure that removes strips of wool-bearing skin from around the buttocks and tail of a live sheep.
In April 2023, Eurogroup for Animals and six animal welfare and conservation organisations sent a letter to the CEO of Adidas, asking the company to stop the production of footwear using kangaroo leather.
"In Australia 1.6 million kangaroos are killed each year, raising serious animal welfare concerns. In addition, kangaroo populations are already suffering from the consequences of climate change such as droughts, floods and bushfires while the methods to estimate populations are questionable. Kangaroo derived products, including leather, are exported to various regions including the European Union.”
The groups called on Adidas to follow brands like Nike and Puma by banning use of the product, and Adidas officially stopped purchasing new kangaroo leather in 2024 and announced the complete end of its use in May 2025.
Adidas receives a middling score in Ethical Consumer’s animals rating.
Israel-Palestine
Adidas has previously been a target of the BDS Movement due to its past sponsorship of the Israel Football Association (IFA), which ended in 2018. Although not a priority target at the time of writing, Adidas lost marks in the rating due to its significant corporate presence in Israel.
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The text above was written in October 2026, and most research was conducted in August 2026.