Adidas AG is a multinational sportswear manufacturer that has made significant progress in sustainability through its initiatives to achieve carbon neutrality, use sustainable materials, and reduce plastic waste. The company’s ESG rating is boosted by its commitment to ethical sourcing and eco-friendly product innovations, such as shoes made from recycled plastic. However, Adidas faces ongoing challenges related to labor practices in its supply chains and the environmental impact of fast fashion. Additionally, issues concerning worker welfare and manufacturing practices continue to affect Adidas’s ESG score. Despite these issues, Adidas is committed to improving its environmental sustainability efforts. For further details, review the Adidas ESG report. They have a low ESG risk, low exposure to material ESG issues, and manage their ESG issues well. The company faces specific material ESG issues related to data privacy and cybersecurity, business ethics, supply chains and human rights, human capital, and controversies surrounding human rights violations. Their sustainability targets include a decarbonisation target by 2025, and their net zero emissions goals are in line with the Paris Agreement. Decent Work and Economic Growth is the only sustainable development goal the company is aligned with so far, and they also aim to achieve climate neutrality. For more information, download the latest ESG adidas report.