Suppliers’ of adidas Changing the Game with SBTi Program
Supporting: adidas suppliers
Sustainability and the shifting apparel and footwear landscape
The fashion industry is estimated to be responsible for 10% of global carbon emissions – more than international flights and maritime shipping combined – and is under the sustainability spotlight for good reason. Supply chains contribute heavily to the total emissions, accounting for nearly 90% of total absolute GHG emissions.
A step change is aligned with consumer demand; increasingly, the use of sustainable materials and a brand’s sustainability commitments are important purchasing factors. Accordingly, apparel and footwear brands are taking action and setting ambitious carbon reduction targets across their entire value chain. UN’s Fashion Industry Charter for Climate Action require companies to set up science-based emissions reduction targets across scope 1, 2 and 3. The charter is signed by over 80 signatories including adidas, Decathlon, CHANEL, GAP Inc. and Nike. So, what are companies doing to ensure their supply chains meet their targets? A case study of adidas’ Strategic Suppliers’ SBTi Program offers insight into an innovative approach.
The Objective
adidas has committed to achieving carbon neutrality across its own operations by 2050 and reducing absolute GHG emissions across its entire value chain by 30% by 2030.
To support suppliers on their path to sustainability, act renewable partnered with adidas and developed its Strategic Suppliers’ SBTi Program.
The objectives of this program are to help key suppliers take full ownership and responsibility of their decarbonization journey and provide support every step of the way. act renewable drives the program end-to-end, engaging top management and operational teams, compiling Scope 1-3 emissions data, preparing SBT and application documents, and most importantly, helping suppliers develop and implement a roadmap to achieve their Science Based Targets (SBT).
Set an SBT, which must be approved by SBTi
Map and quantify all emissions along the supplier’s value chain
Develop low-carbon roadmap
Identify and implement carbon reduction opportunities
Publicly report SBT and progress through CDP
Environmental stewardship:
adidas suppliers takes the lead and validate their targets
Note: SBTi commitment and target approval status can be checked here: https://sciencebasedtargets.org/companies-taking-action
These suppliers have developed Near-term SBT and Net zero target to be achieved by 2030, and by 2050 respectively. SBTi recommends companies must set near-term science-based targets to roughly halve emission before 2030 and set long-term science-based targets /net zero target to achieve more than 90% of emissions before 2050. Suppliers’ collective scope 1 and 2 emissions covered under the target is ~395,000 tCO2e. These suppliers will make an emissions reduction of ~1,72,000 tCO2e to achieve near-term SBT by 2030, roughly 44% of emission reduction as compared to the base year emissions. This is in line with the level of decarbonization required as stated by SBTi.
~395,000 tCO2e
Collective Scope 1 and 2 Emissions Covered by the 11 Suppliers
~30%
Share of Total Scope 3 Emission of the 11 Suppliers
The Low-Carbon Roadmap
A detailed low-carbon roadmap – Scope 1 and 2 emissions has been developed for suppliers. It covered gap-to-target analysis, identification and quantification of carbon reduction opportunities across suppliers operations (e.g., energy efficiency, onsite renewable electricity, offsite renewable electricity, and coal phase-out) and fianancial implications of emisison reduction initiatives.
Transparency through CDP reporting:
Carbon Disclosure Project (CDP)
is a not-for-profit charity that runs the global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts. Over 23,000 companies reported their environmental performance through CDP in 2023.
act renewbale supported suppliers in establishing system for reporting to the Carbon Disclosure Project (CDP) using its Climate Change questionnaire on an annual basis. Most of these suppliers have made their first disclosure in 2023. Some suppliers will be reporting to CDP for the first time in 2024.
The success of adidas’ Strategic Suppliers SBTi Program speaks for itself: it is proof of what can be achieved when brands take the lead, set the standard, and enable their supply chain to meet that standard. In aligning with adidas’ vision, suppliers are stepping up and helping to revolutionize the apparel and footwear industry.
act renewable is immensely proud of the part we played in helping adidas’ suppliers to set science-based targets, gain SBTi approval, enable first-time CDP disclosure and develop a low carbon roadmap. If your organization needs support in guiding your suppliers toward SBTi ambition, get in touch with our team here.
To read more on adidas’ commitment to manage the environmental impacts on their sites and across the entire value chain read more here