Who Owns Adidas?

• Parent Company: adidas AG
• Ownership Type: Wholly owned
• Company Type: Publicly Traded
• Stock Ticker: Frankfurt Stock Exchange: ADS

• Founded: 1949
• Founders: Adolf Dassler

• Founded: 1949
• Headquarters: Herzogenaurach, Germany
• Company Type: Publicly Traded
• Stock: Frankfurt Stock Exchange: ADS
• Revenue: EUR 24.81B (FY2025)
• Employees: ~59,000

Visit adidas AG website

• Headquarters: Herzogenaurach, Germany
• Manufacturing / Operations: China, Vietnam, Indonesia, India, Cambodia, Turkey

Adidas has made sustainability a core pillar of its long-term strategy under the "Own the Game" plan through 2025 and its successor framework. The company committed to using only recycled polyester in all product lines by 2024, a target it largely achieved, replacing virgin polyester across running, training, and lifestyle collections. Recycled materials accounted for approximately 96% of polyester usage in Adidas products in 2024.

The partnership with Parley for the Oceans, established in 2015, has produced over 40 million pairs of shoes from intercepted marine plastic waste as of early 2026. The Parley collection extends across footwear, apparel, and accessories, and has become one of the most recognized sustainability collaborations in the sporting goods industry.

Adidas is a signatory to the Science-Based Targets initiative (SBTi) and has committed to reducing absolute scope 1 and 2 greenhouse gas emissions by 90% by 2025 against a 2017 baseline, and to reducing scope 3 emissions by 30% per product by 2030. The company uses renewable electricity at its own sites and is working with key suppliers in its Tier 1 and Tier 2 manufacturing base to transition to renewable energy sources.

The Adidas "Three Loop Strategy" framework categorizes products into Made to Be Remade (circular design for recycling), Made with Nature (bio-based materials), and Made to Last (durable products). The Stan Smith Mylo shoe, created using mushroom-based leather substitute, is a flagship example of the Made with Nature approach. In 2025, adidas published its first full product-level carbon footprint report, allowing consumers to compare the carbon impact of specific footwear models.

On supply chain ethics, Adidas publishes its full supplier list, conducts regular independent audits through its Social and Environmental Affairs team, and is a member of the Fair Labor Association. The company has faced past criticism for labour conditions at contract factories, particularly in Southeast Asia, and has established grievance mechanisms for workers in its supply chain. Adidas does not hold a Leaping Bunny or PETA cruelty-free certification as some product categories involve animal-derived materials.

Adidas has implemented comprehensive sustainability initiatives through its "Three Loop Strategy" focusing on recycled loop, remade loop, and regenerative loop approaches. The company achieved its ambitious target to replace all virgin polyester with recycled polyester in all products one year ahead of its 2024 target, with 96% of polyester now sourced from recycled materials. Adidas defines "sustainable" products as those made mainly from environmentally preferred materials: at least 70% of article weight for apparel, 50% for accessories, and 20% for footwear.

Environmental Sustainability: Adidas has committed to ensuring nine out of ten articles are "sustainable by 2025," and by the end of 2022, seven out of ten articles already carried more sustainable materials, designs, or manufacturing methods. The company sources 96.2% of cotton from certified organic cotton or Better Cotton, and 99.9% of leather is third-party certified. Adidas has committed to Canopy's CanopyStyle and Pack4Good initiatives to eliminate fiber sourced from climate-critical forests in textiles and packaging.

Recycling Innovation: Through its partnership with Parley for the Oceans, Adidas has produced over 40 million pairs of shoes containing recycled ocean plastic since 2015. The FUTURECRAFT.LOOP initiative represents the first performance footwear concept with an upper made entirely from yarns and filaments reclaimed from marine plastic waste and illegal deep-sea gillnets. In 2019 alone, Adidas produced 11 million pairs of shoes containing recycled ocean plastic by intercepting plastic waste on beaches, remote islands, and coastal communities.

Supply Chain Labor Practices: Adidas employs a team of approximately 50 experts worldwide to ensure workplace standards are applied and met, conducting over 1,200 factory audits of suppliers in 2022. The company scored 55/100 in KnowTheChain's 2024 benchmark for addressing forced labor risks in supply chains, ranking third among 65 companies evaluated. However, Adidas faced criticism in 2025-2026 for withdrawing from sectoral collective bargaining agreements in Germany, prompting trade unions from key supplier countries to coordinate action and establish international oversight mechanisms.

Greenwashing Legal Challenge: In March 2025, Adidas lost a landmark greenwashing case in German court when the Nuremberg-Fürth Regional Court found the company guilty of making vague "climate neutrality" claims without defining pathways or offset disclosures. The ruling highlighted growing scrutiny of sustainability marketing in the apparel industry, though no fine was imposed.

Adidas has received significant recognition for sustainability initiatives and brand strength, though some awards have been tempered by recent controversies. The company consistently ranks among Interbrand's Best Global Brands, maintaining its position as the world's second-largest sportswear company behind Nike.

Adidas's partnership with Parley for the Oceans has earned environmental innovation awards for converting ocean plastic into footwear and apparel. The company's sustainability reporting has received recognition from CDP for climate change disclosure and water security management.

The brand's marketing campaigns have received Effie Awards for effectiveness, particularly campaigns highlighting sustainability initiatives and social justice messaging. However, the 2025 greenwashing court ruling has impacted the company's credibility in sustainability communications, potentially affecting future award considerations in environmental categories.

Adidas has faced several significant controversies and regulatory challenges that are part of the public record and relevant to any comprehensive assessment of the brand.

Yeezy Partnership Termination (2022): The most significant recent controversy involved adidas's partnership with Kanye West (Ye). After West made a series of antisemitic and racist public statements in October 2022, adidas terminated the Yeezy collaboration, which had generated approximately EUR 1.5 billion in annual revenue. The termination resulted in a write-down of approximately EUR 500 million and was one of the factors contributing to a net loss in 2022. Adidas subsequently sold remaining Yeezy inventory through 2024 and donated a portion of proceeds to organisations combating antisemitism and racism.

Greenwashing Lawsuit (March 2025): Adidas lost a landmark greenwashing case in German court for making vague "climate neutrality" claims without defining pathways or offset disclosures. The Nuremberg-Fürth Regional Court found that Adidas failed to detail how it would achieve climate neutrality by 2050, ruling that such broad claims without substantiation constituted misleading environmental marketing. The company adjusted its website language in August 2024 but faced continued scrutiny over sustainability communications.

Supply Chain Labor Practices: Adidas has faced criticism from labour rights organisations including the Worker Rights Consortium and the Clean Clothes Campaign regarding working conditions at contract manufacturing facilities. A 2020 complaint from Cambodian workers alleged unpaid wages during factory closures related to the pandemic. Adidas acknowledged the issue and committed to ensuring suppliers paid owed wages.

Labor Rights and Collective Bargaining Withdrawal (September 2025-January 2026): Adidas faced international criticism for withdrawing from sectoral collective bargaining agreements in Germany, breaking with long-standing social partnerships. Trade unions from key supplier countries coordinated action in response, with around 30 union representatives from Cambodia, Indonesia, Pakistan, India, and Myanmar meeting to establish oversight mechanisms for labor rights and standards.

Supply Chain Forced Labor Concerns (February 2024): A KnowTheChain benchmark report found that while Adidas ranked third among 65 companies with a score of 55/100 for addressing forced labor risks in supply chains, the company still faces significant challenges. The report highlighted that major fashion brands are failing to eradicate forced labor risk in their supply chains. US lawmakers have also queried Adidas along with other fashion brands over alleged forced labor in China's Xinjiang region.

Myanmar Sourcing Concerns: Unions and labor advocates have raised concerns about Adidas's continued sourcing from Myanmar following the military coup and ongoing human rights concerns. The company's supply chain decisions in the region have drawn criticism from international labor organizations and human rights groups.