Adidas: Five Years Re-Engineering Plan

Topics: Sustainability, Carbon dioxide, Natural environment Pages: 13 (2207 words) Published: April 22, 2014
1.0 General
1.1 Company Profile
Adidas is a company that designs and manufactures sports clothing and accessories based in Herzogenaurach, Bavaria, Germany. It is also an industry-leading brand all over the world relating with sports shoes and clothes. Its operating income is €1.011 billion in 2012 and they aims to reach the target of €2 billion in football in 2014. Its workforce is 46,306 employees according to the reports from 2012.

1.2 Purpose of this Manual

Now, this manual is going to point out of their 5 years re-engineering plan including advantages and disadvantages, weakness and strength.

1.3 Scope of EMS
The scope of EMS is included in most of the reputable brands and businesses which are operating using the sources of environments. So, Adidas is also taking care about the environment since their main resources are cotton and leather. The decision to have 100% ‘Better Cotton’ in their products by 2018 is a good example of this. ‘Better Cotton’ is cotton grown to social and environmental standards set by the multi-stakeholder Better Cotton Initiative (BCI). So while setting this target supports their ambitions to make their products more sustainable, the responsibility for meeting it rests with their Global Operations team and their sourcing strategy.

2.0 Policy
2.1 Analyzing the environmental policy of Adidas
According to their re-engineering plan, Adidas targets in 4 major areas: 1. Recyclable Main Materials
2. Energy and Carbon saving
3. Emission and
4. Mobility.
Main material includes leather and cotton what they called better cotton. BCI aims to promote measurable improvements in the key environmental and social impacts of cotton cultivation world-wide. The Better Cotton Initiative (BCI) is to make global cotton production sustainable and they are also a founding member of the BCI. Adidas also founded the Leather Working Group (LWG) in 2005. LWG aims to improve environmental conditions in the leather supply chain. The Leather Working Group is a group of brands, retailers, product manufacturers, leather manufacturers, chemical suppliers and technical experts that was created in 2005 to develop an environmental stewardship protocol specifically for the leather manufacturing industry (Adidas 2011:12). Adidas is also a member and participating company of World Business Council for Sustainable Development (WBCSD) which forums to engage with other global companies concerned with sustainability.

Carbon saving includes 30% for carbon saving: relative energy use by 20% and 10% relative carbon savings through ‘greener energy sources’. In total it is 30% in all. Another impressive thing is 50% paper savings per employee especially in IT footprint. Energy saving mainly involves 20% water savings per employee. Adidas has over 46,000 all over the world, so it is likely to be a huge effect on the environment. When it comes to emission, reduction of household waste by 25% per employee is set to its sustainability plan. The last category is mobility that is about business trip management which is set as reducing emissions caused by business travel to 570 kg CO2 per employee. However, this target was removed in 2012 and Adidas dropped a short explanation grounded on the data received from third party is not forceful enough to follow-up on the target that they had set. Actually, they aim to reduce carbon emissions caused by the company car fleet by 30% which is also known as Green Company Car Policy. But, Adidas gave a reason that there is currently no data tracking system in place that allows them to monitor their progress on a global level when it comes to the car fleet. In my point of view, it is unacceptable. Adidas is not a small business group and I am sure that they are not stupid enough to depend on third party if they seriously want to activate this target. They can set up a device in every pipe that emits Carbon Dioxide through their society. But they are grounding on the other party which is...
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