DATA

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THE PROS:

The Adidas Group, Reebok’s parent company, shares a list of primary factory names and addresses, subcontractor factory names and addresses, and licensee factory names and addresses.

Reebok is a founding member of the Fair Factories Clearinghouse and currently holds a board seat.

The Adidas Group is piloting in-store product take-back programs with the goal to bring this approach to markets where established recycling collection facilities do not exist. In 2014, Adidas America, Adidas Originals Iberia and Reebok all piloted seasonal product take-back campaigns in partnership with not-for-profit organizations.

THE CONS:

Rank-a-Brand gave Reebok a D rating.

In September 2011, the Guardian reported that thousands of people who bought Reebok “toning shoes” to strengthen and tone their bodies could get a refund after the brand agreed to pay out $25m (£16m) to settle false advertising charges. The settlement came after US consumer watchdog the Federal Trade Commission ruled that Reebok’s claim that its EasyTone or RunTone shoes could strengthen hamstrings, calves and buttocks “just by walking” was unsubstantiated.

Reebok sources some of its cotton from the Better Cotton Initiative, however we don’t have any other information about where the rest of the materials the brand uses in its products are sourced from.

/ The Adidas Group owns Adidas, Reebok, Adidas Golf, TaylorMade, Adams Golf, Ashworth, Rockport, Reebok-CCM Hockey and Five Ten.

/ The Adidas Group reports that more than 1 million workers produced goods for the Adidas Group in 2014.

/ At the end of 2014, the Adidas Group worked with 67 licensees whose suppliers manufactured products in 448 factories across 49 countries.

/ At the end of 2014, theAdidas Group worked with 1,133 independent factories (excluding own factories and factories of its licensees), which manufacture Adidas Group products in 61 countries.

/ In 2014, the Adidas Group reported net sales of €14.534 billion.

/ As of December 31, 2014, the Adidas Group operated 2,913 stores. Of the total number of stores 1,616 were Adidas.

/ In 2014, the Adidas, Adidas Golf and Reebok brands produced 309 million units of apparel, 258 million pairs of shoes and 99 million units of hardware (balls, bags, etc.).

/ The Adidas Group, Reebok’s parent company, shares a list of primary factory names and addresses.

/ The Adidas Group, Reebok’s parent company, shares a list of its subcontractor factory names and addresses.

/ The Adidas Group, Reebok’s parent company, shares a list of licensee factory names and addresses.

/ Reebok does not share audit reports and corrective action plans publicly.

/ The Adidas Group, Reebok’s parent company, shares the top 10 labour and the top 10 health and safety non-compliance findings and the relative percentages uncovered during initial assessments of potential future Adidas suppliers.

/ Reebok is a founding member of the Fair Factories Clearinghouse and currently holds a board seat.

/ The Adidas Group has developed a program to support fair wages and wage progression when workers achieve proficiency, performance and competencies in their jobs. The brand has deployed wage assessment tools and guidance to two dozen suppliers to progressively pay fair wages. In the next years, the Adidas Group reports that it will align with the Fair Labor Association’s activities to promote supply chain fair wages. More information on the program is available here.

/ Social compliance ratings show that in 2014, 64% of the Adidas Group’s direct suppliers were assessed as ‘good’ (3C) or better, and environmental compliance ratings present a total of 73% of factories rated ‘good’ (3E) or better.

/ GoodGuide gave Reebok an overall score of 6.5 out of 10. The brands received 5.9 for the society category and the brands’ social policies, practices and performance place it among the best 25% of companies rated by GoodGuide.

/ In March 2015, the Business of Fashion reported that thousands of workers at a major factory in southern Vietnam, that manufactures for Adidas and Reebok, went on strike in protest over social insurance cover.

/ Adidas is a founding member of the Better Cotton Initiative. In 2014, the brand sourced more than 30% of all its cotton as Better Cotton. Adidas aims to source 40% Better Cotton by 2015. By 2018 Adidas has committed to source 100% of cotton in its products as sustainable cotton.

/ In 2011, the Adidas Group, Reebok’s parent company, committed to zero discharge of hazardous chemicals in its supply chain by 2020. The brand was one of the founding members of the Zero Discharge of Hazardous Chemicals Group and has been following the initiative’s roadmap to achieve this target.

/ The brand is piloting in-store product take-back programs with the goal to bring this approach to markets where established recycling collection facilities do not exist. In 2014, Adidas America, Adidas Originals Iberia and Reebok all piloted seasonal product take-back campaigns in partnership with not-for-profit organizations.

/ The Adidas Group, Reebok’s parent company monitors the practices and environmental impact of its suppliers. In the brand’s Environmental Guidelines the brand sets out minimum requirements and requires suppliers to implement environmental management systems that are appropriate to the size and environmental impact of their operations.

/ Reebok states that it is working to incorporate recycled polyester in certain product ranges.

/ The brand is piloting in-store product take-back programs with the goal to bring this approach to markets where established recycling collection facilities do not exist.

/ The Adidas Group, Reebok’s parent company, aims to become a zero emissions company.

/ In 2015, the Adidas Group, Reebok’s parent company, reported that it planned to roll out its SMS hotline service to 20 supplier factories in Cambodia, four more supplier factories in Indonesia and a further eight in Vietnam.

/ The Adidas Group, Reebok’s parent company, is currently reviewing goals and targets for the next planning and execution cycle (2016-2020).

/ Reebok introduced the BOKS Program in 2009 a before-school physical activity program with a mission to bring access to fitness to children between the ages of 5 and 12. In select underserved areas, Reebok provides staff and funding for the program. The program typically runs two to three mornings a week, before the start of the school day, with class sizes that range from 40 to 100 children. By the end of 2014, there were BOKS programs established in more than 1,200 schools in six countries (the US, Japan, South Korea, Canada, Panama, and India).

/ Reebok International sponsors the Avon Walk for Breast Cancer. In addition to supporting Avon Walk with Reebok merchandise, Reebok supports its commitment to the fight against breast cancer through its line of Pink Ribbon footwear and apparel to benefit the Avon Breast Cancer Crusade. Reebok reports that it donates a minimum of $300,000 up to $750,000 to the Avon Foundation for Women through the sale of this Pink Ribbon line.

/ The Reebok Foundation focuses its philanthropy on the BOKS program and also on charitable programs in communities where Reebok offices are located, with special emphasis on the Greater Boston area. Since 1986, the brand reports that the Reebok Foundation has supported hundreds of nonprofit organizations.

/ Reebok partners with a local non-profit organization called The Furniture Trust. The brand has repurposed or recycled approximately 175 tons of furniture, much of it donated to Boston Public Schools.

 

/ In 2014, the Adidas Group CEO, Herbert Hainer made €4,679,313 in overall compensation.

/ In October 2015, the Guardian reported that Reebok removed a controversial T-shirt from its online store after harsh criticism from fans, who decried it as insensitive and offensive.The ‘UFC Ireland Map Tee’, made available this week in advance of Saturday’s Fight Night 76 card in Dublin, features a map of Ireland with Northern Ireland omitted, leaving only the Republic of Ireland pictured. “Show your UFC territorial allegiance with this UFC Ireland map tee,” read the unfortunately worded description for the shirt.

/ In September 2011, the Guardian reported that thousands of people who bought Reebok “toning shoes” to strengthen and tone their bodies could get a refund after the brand agreed to pay out $25m (£16m) to settle false advertising charges. The settlement came after US consumer watchdog the Federal Trade Commission ruled that Reebok’s claim that its EasyTone or RunTone shoes could strengthen hamstrings, calves and buttocks “just by walking” was unsubstantiated.

/ In June 2014, Reuters reported that Skechers USA Inc said it filed a lawsuit against Reebok International Ltd, alleging infringement of patents related to the company’s Go Walk shoes.

/ In March 2014, the Huffington Post reported that one of Reebok’s new ad campaigns’ slogans was “Cheat on your girlfriend, not on your workout.” The ad was pulled after complaints.

/ In 2015, the Adidas Group hosted The Human Rights Impacts of Major Sporting Events – the Role of Sponsors, an event that promoted stakeholder dialogue. The London Stakeholder Dialogue focused on exploring the role of corporate sponsors in major sporting events with respect to upholding human rights and addressing the challenge of moving from principles to practice. The dialogue identified both immediate short-term actions, as well as long term opportunities, for sponsors to engage with sporting bodies and other stakeholders over the human rights impacts of mega sporting events.

/ In 2004 virtualisation became a strategic initiative for the Adidas Group, Reebok’s parent company. It allowed for a reduction in the quantity of physical samples required to design and sell new products. This reduced the use of resources and money and reduced carbon emissions. Since the program was given the full green light in 2010, it has saved the need for over 1 million physical samples.

/ The brand is piloting in-store product take-back programs with the goal to bring this approach to markets where established recycling collection facilities do not exist. In 2014, Adidas America, Adidas Originals Iberia and Reebok all piloted seasonal product take-back campaigns in partnership with not-for-profit organizations.

/ Reebok does not communicate any other brand-specific supply chain innovations, for a full list of the Adidas Group’s innovations visit the Adidas page.

 

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VOICES

GreenpeaceGREENPEACE | DETOX CATWALK

“Adidas’ rapid progress on transparency is particularly encouraging and needs to be maintained to ensure that supply chain facilities beyond China begin full public disclosure of their data on hazardous chemical discharges. If it keeps up its winning streak, adidas will only further secure its place on the podium as a Detox leader.” – 06/2014


LaborBehindTheLabelLABOUR BEHIND THE LABEL | TAILORED WAGES

It is disappointing that a company as large as Adidas has yet to commit to a living-wage strategy, and continues to monitor across its suppliers only that factories pay a minimum wage. Although Adidas says it is “examining the question of fair wages” through membership of the Fair Wage Network, this does not commit it to real action to increase wages on the ground in supplier factories. Gathering data and learning more about the problem is not what is needed now.”

Unfortunately, Adidas’s management seem to be heading in the opposite direction: Adidas CEO Herbert Hainer said in a recent article that because the minimum wage had increased so significantly in China, the company plans to grow production elsewhere. This kind of international corporate bullying sends signals to Asian governments that if wages go up; buyers will flee, and drives the race to the bottom on wages in the industry. Adidas needs a change of tack if its commitment to ‘fair wage’ practice is going to become more than CSR rhetoric.” – 03/2014


TriplePundit

ANDREW BERGER | TRIPLE PUNDIT

Fundamentally, enhancing the overall sustainability of a business enterprise is about corporate culture — about instilling a set of social and environmental values and attitudes that fosters and encourages awareness, innovation and responsibility among employees, suppliers, customers, and in the communities where a company represents itself. Adidas recognizes this.” – 05/06/2021

HERBERT HAINER, CEO 

We face constantly new, industry-wide challenges due to changes in society, key sourcing and sales markets or new technologies and manufacturing trends. But we tackle these challenges and try to improve. And while we will always acknowledge appropriate criticism, we value positive external recognition for our work. 

Sustainability Progress Report 2014

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