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adidas Australia

OVERALL

Owned
GER
Rating
Praises, some criticism

Clothing and footwear wholesaling

Company Ownership

adidas Australia Pty Ltd   AUS     website         
  Adidas AG   
   owns 100% of adidas Australia Pty Ltd  
GER     website   email      

Sportswear

World's #2 maker of sporting goods (behind Nike). Bought Reebok in 2006, and sold it to Authentic Brands Group in 2021.

> About the Ratings

Company Assessment

PRAISE CRITICISM INFORMATION
adidas Australia Pty Ltd
Environment Previous Packaging Covenant signatory
This company was a signatory to the Australian Packaging Covenant, a voluntary agreement to encourage waste minimisation. However in 2017 they elected to withdraw from the Covenant and report directly to state jurisdictions under the National Environment Protection (Used Packaging Materials) Measure 2011 (NEPM).
Source: Australian Packaging Covenant (2022)
Adidas AG
Environment Supply chain practices in China
This company received a score of 70.2/100 (retrieved 10-Oct-2020) in the Corporate Information Transparency Index (CITI), a system for evaluating supply chain practices in China, particularly in regards to environmental management and water pollution. Scores are calculated using government compliance data, online monitoring data, and third-party environmental audits, as well as trends in the environmental performance of factories in the company's supply chains.
Source: IPE (2020)
Environment CDP Climate Change Score of A-
In 2022, the Carbon Disclosure Project (CDP) asked companies to provide data about their efforts to reduce greenhouse gas emissions and mitigate climate change risk. Responding companies are scored across four key areas: disclosure; awareness; management; and leadership. This company received a CDP Climate Change Score of A-.
Source: CDP (2022)
Social 79.2% in Sustainable Cotton Ranking
The 2020 Sustainable Cotton Ranking, published by WWF, Solidaridad and the Pesticide Action Network UK analysed the 77 largest cotton users among international apparel brands and retailers, reviewing their policies, actual uptake of more sustainable cotton and transparency in their supply chains. According to the report, this company is "leading the way" with a score of 79.2%. The average score was 18.2% and the highest score was 79.2%.
Source: Sustainable Cotton Ranking (2020)
Social Human Rights Benchmark
The 2019 Corporate Human Rights Benchmark assessed 200 of the largest publicly traded companies in the world from the Agricultural Products, Apparel, Extractives and ICT Manufacturing sectors on 100 human rights indicators. This company's score was in the 80-90 band range. The overall average score was a disappointing 24%.
Source: World Benchmarking Alliance (2019)
Social 86/100 in KnowTheChain Benchmark
In 2020/21 KnowTheChain benchmarked over 180 large global companies in the ICT, Food & Beverage, and Apparel & Footwear sectors on their efforts to address forced labour and human trafficking in their supply chains. This company received a score of 86/100.
Source: KnowTheChain (2021)
Business Ethics 51/100 in Fashion Transparency Index
The 2022 Fashion Transparency Index reviewed 250 of the world's largest fashion brands and retailers and ranked them according to how much they disclose about their human rights and environmental policies, practices and impacts. Brands owned by this company scored 51%, signifying that it is publishing detailed supplier lists and the vast majority of policies, procedures and future goals. The average score was 24% and the highest score was 78%.
Source: Fashion Revolution (2022)
Business Ethics 79.6% in Newsweek Green Ranking 2017
This company received a score of 79.6/100 in the Newsweek Green Ranking 2017, which ranks the world's largest publicly traded companies on eight indicators covering energy, greenhouse gases, water, waste, fines and penalties, linking executive pay to sustainability targets, board-level committee oversight of environmental issues and third-party audits. Ranking methodology by Corporate Knights and HIP Investor.
Source: Newsweek (2017)
Social CDP Water Security Score of B
In 2022, the Carbon Disclosure Project (CDP) asked companies to provide data about their efforts to manage and govern freshwater resources. Responding companies are scored on six key metrics: transparency; governance & strategy; measuring & monitoring; risk assessment; targets & goals; and value chain engagement. This company received a CDP Water Security Score of B.
Source: CDP (2022)
Social Bangladesh Safety Accord signatory
This company has signed the 'Accord on Fire and Building Safety in Bangladesh', a program endorsed by Bangladeshi and international unions and labor rights organizations. The ground-breaking program includes independent safety inspections with public reports, mandatory factory building renovations, the obligation by brands and retailers to underwrite the cost of repairs, and a vital role for workers and their unions – all in a legally-binding, enforceable agreement.
Source: Bangladesh Accord (2019)
Social 58/100 in 2022 Ethical Fashion Report
Baptist World Aid Australia's '2022 Ethical Fashion Report' assessed 120 companies on their efforts to mitigate against the risks of forced labour, child labour and worker exploitation in their supply chains, as well as protect the environment from the harmful impacts of the fashion industry. Assessment criteria fall into five main categories: policy & governance, tracing & risk, auditing and supplier relationships, worker empowerment and environmental sustainability. This company received a score of 58/100.
Source: Baptist World Aid Australia (2022)
Social Turkmen Cotton Pledge signatory
This company has signed the Cotton Pledge with the Responsible Sourcing Network, signifying a public commitment to not knowingly source Turkmen cotton for the manufacturing of any of their products until the Government of Turkmenistan ends the practice of forced labor in its cotton sector. Each cotton season, Turkmen public sector workers are forced by the government to fulfill cotton picking quotas and private businesses are forced to contribute to the efforts financially or with labor. This places a huge burden on the health, education, and general well-being of Turkmen citizens.
Source: Responsible Sourcing Network (2021)
Social COVID Fashion Commitments
In 2020 Baptist World Aid Australia released The COVID Fashion Report, a special edition of their Ethical Fashion Report. The report is framed around six COVID Fashion Commitments that ask companies to demonstrate the steps and measures they are taking to protect and support the most vulnerable workers in their supply chains. This company showed evidence of actions that cover ALL areas of the COVID Fashion Commitments.
Source: Baptist World Aid Australia (2020)
Business Ethics Global 100
The 2022 Global 100 Most Sustainable Corporations in the World list is based on a rigorous assessment of nearly 7,000 public companies with revenue over US$1 billion. All companies are scored on environmental, social, governance and economic metrics relative to their peers, with 50% of the weight assigned to Clean Revenue and Clean Investment. This company ranked #82 in the Global 100.
Source: Corporate Knights (2022)
Business Ethics 60/100 S&P Global ESG Score
This company received an S&P Global ESG Score of 60/100 in the Textiles, Apparel & Luxury Goods category of the S&P Global Corporate Sustainability Assessment, an annual evaluation of companies' sustainability practices (last updated 18 Nov 2022). The rankings are based on an analysis of corporate economic, environmental and social performance, assessing issues such as corporate governance, risk management, environmental reporting, climate strategy, human rights and labour practices.
Source: S&P Global (2022)
Business Ethics Transparency Pledge
The Apparel and Footwear Supply Chain Transparency Pledge (Transparency Pledge) helps demonstrate apparel and footwear companies' commitment towards greater transparency in their manufacturing supply chain. Transparency of a company's manufacturing supply chain better enables a company to collaborate with civil society in identifying, assessing, and avoiding actual or potential adverse human rights impacts. This is a critical step that strengthens a company's human rights due diligence. This company is fully aligned with the Transparency Pledge, thereby committing to regularly publish on its website a list naming all sites that manufacture its products.
Source: Transparency Pledge (2019)
Business Ethics Materials sourcing
The Material Change Index (MCI) is a voluntary benchmark that tracks the apparel and textiles sector's progress toward more sustainable materials sourcing (cotton, polyester, nylon, manmade cellulosics, wool, down and leather), as well as alignment with global efforts like the Sustainable Development Goals and the transition to a circular economy. This company is identified as one of 36 "Leading" companies.
Source: Textile Exchange (2020)
Environment 17% in Forest 500 Rankings
Forest 500 identifies the 350 companies and 150 financial institutions with the greatest exposure to tropical deforestation risk, and annually assesses them on the strength and implementation of their deforestation and human rights commitments. This company received a score of 17%.
Source: Forest 500 (2022)
Social Workers rights in Cambodia
While conditions for garment workers in Cambodia have improved since 2014, rights violations are still rampant in the garment industry and the country as a whole. Despite this Nike, Adidas, H&M, Gap Inc, and other international brands continue to rely on Cambodia for the manufacture of a significant portion of their products.
Source: ASEAN (2019)
Social Efforts to pay a living wage
The Clean Clothes Campaign report, Tailored Wages 2019 analyses responses from 32 top clothing brands about their progress in implementing a living wage for the workers who produce their clothes. This company received the lowest possible grade in the report, meaning they produced no evidence that any worker making their clothes was paid a living wage anywhere in the world.
Source: Clean Clothes Campaign (2019)
Social Forced labour in China
The Chinese government has facilitated the mass transfer of Uyghur and other ethnic minority citizens from the far west region of Xinjiang to factories across the country. Under conditions that strongly suggest forced labour, Uyghurs are working in factories that are in the supply chains of at least 83 well-known global brands in the technology, clothing and automotive sectors, including brands owned by this company. The Australian Strategic Policy Institute's 2020 report estimates (somewhat conservatively) that more than 80,000 Uyghurs were transferred out of Xinjiang to work in factories across China between 2017 and 2019, and some of them were sent directly from detention camps.
Source: ASPI (2020)
Social Workers rights in Myanmar
This company is still sourcing garments from Myanmar, where there has been a significant increase in labour and human rights abuses of garment workers across the country since the military takeover in Feb 2021. Wage theft, inhumane work rates and mandatory overtime, and attacks on freedom of association are the most frequently recorded types of abuse.
Source: BHRRC (2022)
Environment Water pollution in Indonesia
According to Greenpeace's 2013 report "Toxic Threads: a story of big brands and water pollution in Indonesia", this company had a business relationship in the recent past with PT Gistex Group, the company responsible for discharging a wide range of hazardous substances directly into the Citarum River in Indonesia.
Source: Greenpeace (2013)
Social Sweatshops in Indonesia, Sri Lanka and the Philippines
This 2011 report by the International Textile Garment and Leather Workers' Federation (ITGLWF) examined working conditions in 83 factories in Indonesia, Sri Lanka and the Philippines. Investigations found that widespread violations and abuses of workers' rights continue to be the norm, such as underpaying workers, long hours, forced overtime, and repression of the freedom of association. This company's brands were found to be made in one or more of the 83 factories covered in the research. [Listed under Information due to age of report]
Source: ITGLWF (2011)
Social Child labour
New research (2010) into soccer ball stitching for sports giants Adidas, Umbro, and Nike has found alarming reports of illegally low pay, child labour, and temporary contracts leaving workers vulnerable. [Listed under Information due to age of report]
Source: Labour Behind the Label (2010)
Social Workers rights
Playfair 2012, a coalition of trade unions and campaigning organisations, says this company is not doing enough to: ensure all workers are paid a living wage; allow workers to bargain collectively; eliminate short term contracts; and build long-term relationships with supplier factories. [Listed under Information due to age of report]
Source: Playfair 2012 (2012)
Social Workers rights in Indonesia
A 2012 investigation by The Independent reveals workers at nine Indonesian factories contracted to produce Olympic shoes and clothing for Adidas are working up to 65-hour weeks and earning as little as 53 cents an hour. None of the nine factories pays its employees a living wage. [Listed under Information due to age of report]
Source: The Independent (2012)
Social Sweatshops in Bangladesh
This 2012 report by War on Want presents a detailed picture of the conditions faced by workers in Bangladesh, mostly women, who produce the sportswear sold by leading brands Adidas, Nike and Puma. Abuses include paying workers below the legal minimum wage in Bangladesh, excessive hours, sexual harassment and beatings. On average workers were paid just 16p an hour, with two thirds of the workers working over 60 hours a week, in clear breach of Bangladeshi law. [Listed under Information due to age of report]
Source: War on Want (2012)
Social Workers rights in China
This 2014 report by the Workers Rights Consortium investigates workers' rights violations at Yue Yuen, the manufacturing arm of the largest producer of branded athletic shoes in the world, and supplier to many major footwear brands, including brands owned by this company. Violations include illegal underpayment, unpaid overtime, restricting freedom to organise, and failure to provide valid employment contracts. [Listed under Information due to age of report]
Source: Workers Rights Consortium (2014)
Environment Climate action commitments
As listed on the We Mean Business website, this company has committed to the following climate action initiatives: adopt a science-based emissions reduction target.
Source: We Mean Business (2021)
Environment Ocean plastic sportswear
Adidas is working with Parley to turn ocean plastic pollution into sportswear such as Ultraboost running shoes and football jerseys. Adidas has committed to creating 1 million pairs of Ultraboost shoes by the end of 2017.
Source: company website (2016)
Environment Zero discharge of hazardous chemicals
In 2011, a group of major apparel and footwear brands and retailers, including this company, made a shared commitment to help lead the industry towards zero discharge of hazardous chemicals by 2020. It includes specific commitments and timelines to realize this shared goal.
Source: ZDHC (2019)
Environment Detox commitment
Greenpeace launched its "Detox My Fashion" campaign in 2011 to expose the direct links between global clothing brands, their suppliers and toxic water pollution around the world. As a result, many companies, including this one, committed to Greenpeace's Detox Program. The 2016 Detox Catwalk report focused on implementation, assessing the steps taken by fashion brands to fulfil their commitments using three criteria: Detox 2020 plan, PFC elimination and Transparency. This company is "committed to Detox and has made progress implementing its plans, but its actions need to evolve faster to achieve the 2020 Detox goal".
Source: Greenpeace (2016)
Social Uzbek Cotton Pledge signatory
This company signed the Uzbek Cotton Pledge with the Responsible Sourcing Network, signifying a public commitment to not knowingly source Uzbek cotton for the manufacturing of any of their products until the Government of Uzbekistan ends the practice of forced labor in its cotton sector. However the Pledge was lifted in March 2022 after the Uzbek Forum for Human Rights, who monitored the annual cotton harvest since 2010, found no state-imposed forced labor in the 2021 harvest.
Source: Cotton Campaign (2022)
Social Action on Darfur
Identified in 'The Big Chill: Too Scared to Speak' report which identified Chinese Olympic Sponsors response to Darfur crisis in Sudan. Received a B+ for writing the UN and allowing those letters to be made public, among other actions.
Source: Dream for Dafur (2008)
Social FLA Accredited
When joining the Fair Labor Association (FLA) this company committed to promoting and complying with international labor standards throughout their supply chain. The FLA does not accredit the company itself; rather, they accredit the company's labor compliance program. Being granted accreditation implies that their workplace standards program is substantially in compliance with the FLA Code.
Source: Fair Labor Association (2016)
Animals Angora ban
This company has taken angora items off the shelves and promised not to use angora again, following a PETA campaign launched in Dec 2013 which revealed the cruelty inflicted on angora rabbits in Chinese factory farms, where 90% of the world's angora is produced.
Source: PETA (2018)
Business Ethics Contract Factory Disclosure List
Adidas fully discloses its global factory lists and publishes detailed information including name and location of suppliers by country about its primary suppliers, subcontractors and licensees.
Source: company website (2018)
Business Ethics I:Collect partner
This company is a partner of I:Collect (aka I:CO), a global collection network to keep discarded clothing and shoes out of landfills. Customers deposit used textiles into recycling dropoff boxes at this company's stores, and I:CO arranges their environmentally-friendly removal, sorting and reuse.
Source: I:Collect (2014)
Business Ethics Better Cotton Initiative member
This company is a member of the Better Cotton Initiative, a voluntary initiative which encourages the adoption of better management practices in cotton cultivation to achieve measurable reductions in key environmental impacts, while improving social and economic benefits for cotton farmers, small and large, worldwide.
Source: Better Cotton Initiative (2022)
Business Ethics bluesign member
The bluesign Standard sets "best practices" for the use of chemicals and resources - including water and energy - in the textile industry. Textile manufacturers who are bluesign system partners agree to establish management systems to improve environmental performance in five key areas of the production process: resource productivity, consumer safety, water emissions, air emissions, and occupational health and safety. They regularly report their progress, are subject to on-site audits, and must meet improvement goals to maintain their status.
Source: bluesign (2021)
Business Ethics Make Fashion Circular participant
This company is a participant of Make Fashion Circular, a multi-stakeholder platform run by the Ellen MacArthur Foundation, which drives collaboration between industry leaders and other key stakeholders to create a textiles economy fit for the 21st century. Its ambition is to ensure clothes are made from safe and renewable materials, new business models increase their use, and old clothes are turned into new. This new textiles economy would benefit business, society, and the environment.
Source: Ellen MacArthur Foundation (2019)
Business Ethics Leather Working Group member
This company is a member of the Leather Working Group, a multi-stakeholder group who's objective is to develop and maintain a protocol that assesses the compliance and environmental performance of tanners and promotes sustainable and appropriate environmental business practices within the leather industry.
Source: Leather Working Group (2022)
Business Ethics Textile Exchange member
This company is a member of the Textile Exchange, a global non-profit that works closely with its members to drive textile industry transformation in preferred fibres, integrity and standards and responsible supply networks. They identify and share best practices regarding farming, materials, processing, traceability and product end-of-life in order to reduce the textile industry's impact on the world's water, soil and air, and the human population.
Source: Textile Exchange (2019)
Business Ethics Fashion Industry Charter for Climate Action signatory
This company is a signatory to the Fashion Industry Charter for Climate Action, a United Nations initiative which contains the vision to achieve net-zero emissions by 2050.
Source: UNFCCC (2020)
Business Ethics The Fashion Pact member
This company is a member of The Fashion Pact, a global initiative of companies in the fashion and textile industry (ready-to-wear, sport, lifestyle and luxury) including their suppliers and distributors, all committed to a common core of key environmental goals in three areas: stopping global warming, restoring biodiversity and protecting the oceans.
Source: The Fashion Pact (2022)
Environment CDP Forests Score of C
In 2022, the Carbon Disclosure Project (CDP) asked companies to provide data about their efforts towards removing commodity-driven deforestation and forest degradation from its direct operations and supply chains. Responding companies are scored across four key areas: disclosure; awareness; management; and leadership. This company received a CDP Forests Score of C.
Source: CDP (2022)
Social Modern Slavery statement
California, the UK and Australia have all enacted legislation requiring companies operating within their borders to disclose their efforts to eradicate modern slavery from their operations and supply chains. Follow the link to see this company's disclosure statement.
Source: company website (2016)
Social Workers rights improve in China
This 2010 investigative report by China Labour Watch reveals that conditions in factories supplying Adidas improved considerably in 2009. In one factory 26 out of the 28 issues CLW pointed out in 2008 saw improvement. The remaining issues are illegally long working hours and the problem of worker suicides. CLW says that while these improvements are satisfactory, it must be noted that the problems had existed for more than ten years. It is also noted that working conditions in factories not under NGO or media scrutiny are likely to still be poor.
Source: China Labor Watch (2010)
Social BHRRC company profile
Business & Human Rights Resource Centre digital platform presents news and allegations relating to the human rights impact of over 20,000 companies. Their enhanced Company Dashboards also include financial information, key data points based on corporate policies, and scores from prominent civil society benchmarks. Follow the link and use the search function to view this company's dashboard.
Source: BHRRC (2022)
Animals Kangaroo skin boots
Adidas was the target of a long running boycott call from animal rights campaigners Viva! for its use of kangaroo skin to make some types of football boots. However in September 2012 Adidas announced it would phase out the use of kangaroo leather by 98% over the following 12 months.
Source: Viva (2012)
Business Ethics Political boycott
Call to boycott by BDS due to involvement in Israel. [This assessment has not been used in calculation of ratings].
Source: BDS (2012)
Information Facing Finance profile
This company is listed on the Facing Finance website as a company that manufactures weapons or profits from violations of human rights, pollution, corruption, or international law. Follow link for further details.
Source: Facing Finance (2014)

> About the Icons

Company Details

Type Wholly-owned subsidiary
Revenue 441 million AUD (2018)
Employees 560 (2018)

Contact Details

Address 767 Springvale Rd, Mulgrave, VIC, 3170, Australia
Phone 03 9263 5299
Website www.adidas.com.au

Products / Brands

adidas Australia
Adidas Childrenswear
Adidas Sportswear
Adidas Youth Fashion
Adidas Sports Shoes
Adidas Activewear
Five Ten Sports Shoes
Taylor Made Sportswear


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