People
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.
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.
The company scored just 10/100 in Ethical Consumer’s workers rights rating overall.
Environment
Adidas has a mixed record on the climate, scoring 50/100 points in Ethical Consumer’s carbon rating.
The company reports on emissions across its supply chain and has set a target to reduce its footprint by 30% by 2030, compared to 2017. However, it has published little detail on how it will reach this goal, and has recently been accused of greenwashing.
In June 2022, the French environmental group Zero Waste France filed a complaint with the French courts over what it termed Adidas’ “deceptive marketing practices”.
The group accused Adidas of communicating “shamelessly and disproportionately on [environmental] commitments” while in practice they “change almost nothing to their production model”.
Its approach to sustainable materials is also mixed. While 96% of its polyester was recycled in 2022 – its most recent year of reporting – just 3.7% of its cotton was organic. It scored 40/100 in Ethical Consumer’s sustainable materials rating overall.
Politics
Adidas scored a paltry 0/100 for 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 2022, its CEO received 11.5m euros (approximately £9.8m).
Animals
Adidas uses animal products including down, leather and wool, without adequate policies to protect animal welfare in its supply chain.
While its down is 100% recycled or certified by the Textile Exchange’s Responsible Down Standard (RDS) – which ensures better animal welfare – its wool does not come with the same guarantee.
In April 2023, Eurogroup for Animals and 6 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.
Adidas received 0/100 in Ethical Consumer’s animals rating.
Ethical Consumer Best Buy: No
Boycotts: No