We have heard a lot about what the various corporates have been up to on the sustainable front. Sometimes, it is about sustainable or eco-friendly packaging, sometimes it is through CSRs, or sometimes it is about people’s sustainability development.
More often than not, most of the common populace’s perception ends up creating is that all of these efforts are nothing but meager attempts to mask the more considerable damage being done.
Is that so? We leave that for the general populace to decide and while you do or do not do your research and form an opinion, let us discuss Adidas’s case(from recycling to bonds).
From Recycling to Bonds: ADIDAS
Adidas is one of those firms that has been at the forefront of sustainable development even before it was all in vogue.
Not trying to put anybody’s case here but let us first look at what extraordinary efforts the firm has been putting up all this while.
1. Sustainability: Adidas has already invested in sustainability initiatives during the draconian situation due to Covid and expand its range of sustainable products in 2021. They not only themselves but guide their suppliers and vendors to create structures that make it possible to process the recycled material on a large scale. This step will develop and beneficial for the whole country.
2. Expands recycling of polyester: In 2021, for the first time, Adidas will use more than 60 percent of recycled polyester in its products. In cooperation with other partners, Adidas is developing plant-based leather, recycled cotton, and climate-friendly shoe.
3. Cooperation with Parley for the Oceans for the protection of oceans: Since 2015, Adidas is collaborating with Parley for the Oceans, an environmental organization, aiming at producing about 17 million pairs of shoes with recycled plastic waste collected from beaches and coastal regions. The Primeblue and Prime Green label mark products are made from recycled materials to avoid waste and prevent natural resources.
4. Recycled materials: If we talk about cotton, Adidas is taking participation with great interest in developing recycled materials. In research cooperation with Infinite Fiber, a Finnish start-up company, Adidas and additional partners strive their best for developing the process to transform used clothes into a cotton-like material.
5. Production with vegan products: Moreover, Adidas is continuously contributing to the expansion of vegan products and completely renounces the use of fur. It means that the use of less plastic and less animal material leads to sustainability. In the year 2020, Adidas launched the vegan shoe version of several classics as the Adidas stan smith. Adidas is also developing new material in partnership, a purely natural leather alternative made from mycelium, and it will be sued first time in the creation of footwear. And Adidas has committed to Vier Pfoten, an animal protection organization, to ban furs in production completely.
6. Green electricity: In partnership with the company suppliers and vendors, the company aims to achieve global climate neutrality by 2050 and its entire supply chain. It is also working in generating green electricity, as Adidas has reduced its overall carbon footprint at its company sites by more than 50 percent compared to 2015. Adidas owned photovoltaic systems with an installed capacity of 1.4 megawatts that generate green electricity.
7. Climate and environmental protection: Sustainability also for investors as Adidas placed its first sustainability bond. As it is working with suppliers to implement climate and environmental protection measures at the sites of partners in the supply chain. Various projects aim at reducing carbon emission and water consumption as well as preserve an intact environment.
8. Reliable partner: Adidas always proves it as a reliable partner, adhering to all agreements and supporting the manufacturers with the technological advancements and other know-how regarding the implementation of enforced hygiene measures.
9. Labor rights preference on the top: In November 2020, the renowned corporate human rights benchmark ranked Adidas as the best industry worldwide in the apparel industry concerning ensuring human rights and labor rights in the supply chain mechanism.
10. Sustainability is an essential factor: Sustainability is a crucial factor for the investors, too; the Adidas sustainability bond issue in September 2020was five times oversubscribed compared to the previous one. The proceeds and outcomes will be used to procure recycled material, invest in renewable resources, renewable energy production, and support underrepresented communities.
So, that was that just laying out a few facts. It goes without saying that the firm has done a lot of work in the field of sustainability. Probably others should follow the course, or probably we should start focussing on the positive narrative and do something about it too!
Till then! Have a happy time reading.