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Transcript of Integrating Sustainability throughout the Value · PDF fileIntegrating Sustainability...
Integrating Sustainability throughout the Value Chain
Lyn IpRegional Manager (EHS) – Asia PacificSocial and Environmental Affairs (SEA) Department
2
Environmental Sustainability at the adidas Group - a holistic approach
Overview
Introduction
Product: Better Place Program and sustainable materials
Supply Chain
Own Operations
Conclusion
Sustainability in the value chain – our approach
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Environmental Sustainability at the adidas Group - a holistic approach
Introduction
The adidas Group
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Environmental Sustainability at the adidas Group - a holistic approach
The Business Model
• Global sourcing and distribution• Local market production by sales subsidiaries• Cooperation with licensees
Introduction
Subcontractor
Subcontractor
Suppliers
Suppliers
Suppliers
Suppliers
Central FunctionsMarketing
Design
Operations
Human Resources
Legal
Finance
Wholesale
Own Retail
Consumers
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Environmental Sustainability at the adidas Group - a holistic approach
Introduction
Corporate Sustainability Mission
The adidas Group strives to be the global leader in the sporting goods industry.
Leadership means that we are dedicated to socially responsible, safe and environmentally sound practices in the company and its supply chain to enhance the value of our brands.
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Environmental Sustainability at the adidas Group - a holistic approach
Recognition
• Dow Jones Sustainability Index: listed since 2000
- Super Sector Leader (2008 and 2009)- Best Performer: Industry leader in the apparel and footwear sector- Gold Class: Highest average performance- Best Mover: Best development performance
• FTSE4Good Europe Index: Listed since 2000
• Ethibel Index: Listed since 2003
• Global 100 Most Sustainable Corporations (since 2005)
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Environmental Sustainability at the adidas Group - a holistic approach
Sustainability in the Value Chain - Our approach
Sustainable resource use - Energy efficiency and climate change- Water conservation
- Materials - Efficiency
Emissions - Water discharge- Waste- Air emissions- Noise- Soil and groundwater contamination
Risks and hazards - Chemicals
Env
iron
men
tal A
spec
ts
Design Marketing DevelopmentOwn
operationsSourcing/
ManufacturingUse &End of
Life
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Environmental Sustainability at the adidas Group - a holistic approach
Product Creation and the development of sustainable products
Encompasses for us:• Design• Marketing• Development
Sustainability in the Value Chain – Product creation
Design Marketing DevelopmentOwn
operationsSourcing/
ManufacturingUse &End of
Life
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Environmental Sustainability at the adidas Group - a holistic approach
adidas Better Place
Concept
• Launched SS09• Holistic, Life-Cycle approach on
sustainable product creation• Better Place Guidelines
- Design - Materials - Construction (pattern efficiency)
Products meeting this criteria are labeled as Better Place to the consumer
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Environmental Sustainability at the adidas Group - a holistic approach
Sustainable Materials
Our approach:
• Innovate new sustainable materials through close collaboration with suppliers
• Further improve our internal material assessment tool
• Implement new sourcing models
• Collaboration with external organisations and brands
- Organic Exchange- Sustainable Roadmap of DEFRA (UK)- European Outdoor Working Group
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Environmental Sustainability at the adidas Group - a holistic approach
Sustainable Materials
LCA for rPES:
• Results have been compared with other commodity fibers
• The LCA results of the study show that recycled polyester fibres offer important environmental benefits over virgin polyester.
� non-renewable energy use (NREU) savings of 40-85%� global warming potential (GWP) savings of 25-75%
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Environmental Sustainability at the adidas Group - a holistic approach
Managing impacts and risks in the supply chain• Sourcing regions• Workplace aspects• Environmental aspects
Sustainability in the Value Chain – Sourcing
Design Marketing DevelopmentOwn
operationsSourcing/
ManufacturingUse &End of
Life
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Environmental Sustainability at the adidas Group - a holistic approach
Improving our Environmental Footprint• Restricted substances
0
20
40
60
80
100
120
140
grs/
pair
99 F A J A O D F A J A O D F A J A O D F A J A O D F A J A O D F A J A O D F A J A O D F A J A O D
1999 - 2007
VOC Consumption in grs/pair
Environmental aspects
• Footwear factories:- VOC management- Reporting- Environmental management systems
Supplier engagement• Raising environmental awareness and
promoting best practices• Stakeholder meetings with suppliers
• Energy workshops for suppliers since 2007• Auditing schemes for focus suppliers• Improvement program and targets for apparel
suppliers
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Environmental Sustainability at the adidas Group - a holistic approach
Managing impacts in our own Operations- Offices- Own manufacturing- Warehouses
Sustainability in the Value Chain – Our own operations
Design Marketing DevelopmentOwn
operationsSourcing/
ManufacturingUse &End of
Life
15
Environmental Sustainability at the adidas Group - a holistic approach
• Development of Group-wide targets- Energy consumption- Carbon emissions- Water consumption- Waste
Managing impacts in our own operations
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Environmental Sustainability at the adidas Group - a holistic approach
Annual Social and Environmental Report
Reporting
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Environmental Sustainability at the adidas Group - a holistic approach
Thank you