Empowering multinational’s CO2 reduction for Global Supply Chain
adidas is one of the largest sportswear brands in the world. It designs, manufactures, and markets athletics apparel, footwear, and accessories. The company has publicly committed to achieving carbon neutrality across its entire supply chain by 2050, as well as achieving 15% GHG emissions reduction per product by 2025.
adidas is on track with its plans to tackle Scope 1 and 2 emissions in line with its commitments to reduce emissions, however, with more than 70% of emissions coming from its global supply chain, Scope 3 emissions remained a major challenge. To promote decarbonization across its supply chain, adidas needs to empower its global network on the topic of emission reduction.
In some countries, the opportunity to switch to renewables (on- or off-site) is a matter of regulations or resource/technology availability. For example, cap on the size of solar rooftops or the amount of renewable energy that can be claimed. Furthermore, many of the solutions available to reduce emissions are costly and require significant investment, such as changing machinery or installing rooftop solar.
To engage and enable suppliers, it was necessary to map out the potential for suppliers and demonstrate that there are competitive advantages to investing.
act renewable’s team was perfectly positioned to support adidas in conducting rooftop feasibility studies across its supply chain, leveraging our deep understanding of differing regulatory environments and actively collaborating with our sister companies for:
- Technical support on the system design of each system
- Access to country assessment and knowledge regarding solar rooftop installations
- In-country experts to support the onsite visits in China, Vietnam and Indonesia
Process & Roadmap
Based on the strategy identified for its supply chain, adidas focused on supporting its suppliers on their transition to renewable energy, prioritizing onsite solar, due to its availability and the potential for a positive business case for the supplier. For suppliers opting to proceed, they would benefit from a guided approach to contracting with a solar developer.
The approach supported adidas SEA team to gather accurate data and alignment with the supply chain factories. Using Helioscope modelling and local renewable energy insights, we compiled a feasibility assessment for over 130 supplier sites, assessing their potential for renewable energy implementation, including a business case for each.
HelioScope design of addidas Solar Rooftop
Tackling supply chain emissions: a corporate perspective
adidas Senior Director, Global Environment for the Supply Chain, Tracy Nilsson and act renewable Managing Director, Rasmus Nedergaard discuss how corporates can take the first steps to overcome the complexities faced when targeting emission reduction in the supply chain.