INTRODUCTION

Adidas AG is a German-based company involved in the

manufacture of sports apparel. Other than sports footwear, Adidas AG
is also involved in the manufacture of shirts, bags, eyewear, watches,
and other clothing-and sports-related products. The company is the
leading manufacturer of sportswear in Europe. Globally, it comes
second after Nie, the American-based rival company !"loomberg,
#$$%&.
The Sports equipment industry
'ports e(uipment is a general term for any ob)ects for sport or
e*ercise+ it includes balls, e*ercise e(uipments, flying discs, footwear,
clothing, protective e(uipment, goals, nets, vehicles...
The sports e(uipment industry shows fast growing in past decade
or so, the reasons behind that can be either of these,
- -ommercialisation of sport and massive mareting campaigns
with top sportsmen as advertising models+
- .igh-speed everyday routine of people in the developed
countries and the /healthy life style0 urge which brings more and more
people to sport+
- The new technologies and materials used in sports shoes,
clothes and accessories turn it more into a fashion, than necessity.
AIMS AND OBJECTIES
This paper analyses the maret environment and the strategic
position of Adidas AG in the world of the sports e(uipment industry.
A /Mar!et En"ironment Ana#ysis0 is evaluation
of the conditions in the maret environment of the sports e(uipment
industry in their wider macro environment in which Adidas AG
operates.
The /Adidas Strate$i% Ana#ysis0 is the evaluation
of the resource capability of Adidas+ it highlights its threshold and
uni(ue resources, and its core competences.
The /Strate$i% &it Ana#ysis0 is an evaluation of the strategies
Adidas AG uses to highlight its strengths or weanesses to perform
better in the maret.
1E2 TE34' 5N 'T3ATEG5- 4ANAGE4ENT
The strategic management process is based on the belief that
organi6ation should continuously monitor internal and e*ternal events
and trends so that timely change can be made as needed. The rate
and magnitude of changes that affect the organi6ation are increasing
dramatically. To survive all organi6ations must be capable of identifying
and adapting to change.
Strate$ists are the individuals who are most responsible
for the success or failure of an organi6ation+ they are the individuals
who form the company0s strategies and they have various )ob titles,
such as chief e*ecutive officer, president, and owner, chair of the
board, e*ecutive director, chancellor, dean, or entrepreneur. 'trategists
help an organi6ation gather, analyse, and organi6e information+
evaluating the corporate and divisional performance, identifying
emerging maret opportunities, business threats, and are developing
creative action plans.
ision Statements 4any organi6ations nowadays are
developing a 7vision statement7 which answers the (uestion, /what do
we want to become80. 9eveloping a vision statement is often
considered the first step in strategic planning, preceding even
development of a mission statement.
Mission Statements are enduring statements of
purpose that distinguish one business from other similar firms. A
mission statement identifies the scope of a firm:s operations in product
and maret terms. 5t is addressing the basic (uestion that faces all
strategists, /;hat is our business80.
E'terna# Opportunities and Threats refer
to any changes in economic, social, cultural, demographic,
environmental, political, legal, governmental, technological, and
competitive trends and events that could significantly benefit or harm
an organi6ation in the future.
DENTIFYING AND DETERMINING IMPACT AREAS
Our strategy is built on the achievements and learning from previous years. It takes into account changes in
the societal landscape, global trends and goes hand-in-hand with our overall business strategy. Our
approach to sustainability refects the feedback we have captured from our stakeholders and sets clear
targets we are striving to achieve.
WHY WE DO WHAT WE DO
There are many sustainability issues a multinational company might face. To identify the most relevant
issues, we look at our business through diferent lenses. The following aspects guide us in determining
topics and issues of concern in our programmes and reporting:
Our mission and values:issues that are rooted in the adidas Groups mission to be a
global leader in the sporting goods industry and the corresponding business strategy.
Reputational impacts/risks:issues that may have a reputational impact or may pose a risk
to the company in the short, medium or long term.
Legal and regulatory drivers:issues that are being shaped by existing, emerging or
evolving government policies and regulations.
Peer-based and industry-wide norms:sustainability issues or standards that are developed
by other companies or are addressed industry-wide and are used as benchmarks for our
performance.
Stakeholder concerns and societal trends:issues that are of high importance to our
stakeholders including communities, non-governmental organisations (NGs! and the general
public, or re"ect societal and consumer trends. #e regularly consult stakeholders on various
topics to better understand their views, concerns and expectations.
Opportunity for innovation:areas where we can explore innovative solutions that bene$t
the environment, our supply chain, customers and other stakeholders to demonstrate sector
leadership and create competitive advantage.
Based on the aforementioned, we have developed a sustainability programme that allows us to focus on
those topics and areas identifed as most material for the Group. The programme covers fve areas:
%mbedding environmental sustainabilityin all products, processes and services to
signi$cantly improve our environmental impact across our value chain and to positively
contribute to our business performance.
%&ectively managing business risks and social compliance in our supply chain, which is
expanding and becoming more complex with multiple relationships and stretched lines of
communication and control.
%xtending our engagementinternally and externally ' partnering with others to embed
new thinking and better ways of collaboration within our business and along our supply chain.
#orking together to make a di&erence.
(reating the best and most productive workplacein the industry by becoming a champion
in talent and succession management and a world-class recruiter.
)aking a di&erence in the communitieswhere we operate by supporting programmes
that truly meet local needs.
SUSTAINABILITY TEAM
GROUP SOCIAL AND ENVIRONMENTAL AFFAIRS
*he +ocial and %nvironmental ,&airs (+%,! team is a diverse group of -. people ' engineers,
lawyers, /0 managers, environmental auditors and former members of non-governmental
organisations (NGs!. *he team is organised into three regional teams covering ,sia, the
,mericas and %urope, )iddle %ast and ,frica (%)%,!, as well as the Group-wide functions of
%nvironmental +ervices and (ommunity ,&airs.
*he +%, team is responsible for1
%nsuring compliance with the #orkplace +tandards within the adidas Groups supply
chain
2acilitating, promoting and managing the development and implementation of
environmental initiatives across the Groups own facilities
%xtending and maturing the engagement and collaboration with others to drive
changes in the industry
)anaging the Groups community engagement programme.
SOCIAL AND ENVIRONMENTAL TEAM - ORGANISATIONAL CHART

The SEA team works closely with other global Group functions such as Sourcing, Legal, Facility
Management, Human Resources, Sales and Corporate Communication, as well as the brands Marketing
and Product Development teams.
The collaboration between SEA and Sourcing has been particularly important to improve workplace and
environmental conditions in our supply chain. Over the years, SEA has established systems and processes
to ensure Sourcing fully considers compliance with the Workplace Standards.
By engaging directly with suppliers, government and other external stakeholders, SEA is informed about any
human rights, social and environmental issues at an early stage. This allows SEA to proactively address any
potential risks as well as health, safety and environmental liabilities directly with the Executive Board and the
Sourcing management team as needed.
The team is directly involved in developing and updating corporate policies and operating procedures related
to social accountability, product safety and compliance with environmental laws and regulations. The SEA
team plays a critical role in leading and counselling the brands and Group functions to deliver the Group-
wide Environmental Strategy 2015.
GROUP HUMAN RESOURCES
Group Human Resources is a core function within the adidas Groups global organisation. It is led by the
Chief Human Resources Ofcer who reports directly to the CEO. The Global HR organisation consists of:
/0 3usiness 4artner teams who support functions, brands, sales channels and other
departments across the adidas Group organisation in all relevant /0 matters
/0 (entre of %xcellence for *alent who drive *alent ,c5uisition, 4erformance and
+uccession, 6eadership and 6earning
/0 (entre of %xcellence for 0ewards who drive (ompensation and 3ene$ts, )obility, e-
/0 and /0 +ervices.
2ocus teams who manage our (ompany +ports programme and 78iversity and
9nclusion7 initiatives at ma:or Group locations.
AWARDS AND RECOGNITION
We value feedback from our stakeholders about our programme and we appreciate positive recognition from
international institutions and rating agencies, non-governmental organisations (NGOs) and socially
responsible investment (SRI) analysts. These organisations evaluate our work through in-depth analysis of
the companys social and environmental programme, including document review and interviews with
employees and management.
The following awards demonstrate external recognition and acknowledgement of the adidas Groups
sustainability initiatives worldwide:
;<=> ' adidas Group among the 7Global =<< )ost +ustainable (orporations in the
#orld7 for the =<th time in a row? $rst time in top =< - ranked @th
;<=A - adidas ,G included in 8ow Bones +ustainability 9ndices for =>th time - 9ndustry
6eader for =<th time
;<=A - adidas ,G again included in the +*CCD Global %+G 6eaders indices
;<=A ' (ontinued inclusion in the 2*+%>Good 9ndex
;<=A - 0econ$rmed inclusion in the %thibel 49N%%0 and %thibel %C(%66%N(%
9nvestment 0egisters
;<=; - 9nclusion in the (arbon 8isclosure 6eadership 9ndex for Germany, ,ustria and
+witEerland
9nclusion in the Figeo Group 9ndexes
9nclusion in the %(49 %thical 9ndex %)G
;<== ' +ilver medal for adidas ,G as H+ustainable 0etail (ompany ;<==H
;<<I - 3est rating by %uropean consumer organisations
;<<@ ' 0e-accreditation by the 2air 6abor ,ssociation
;<<J ' 3.,.G.). %nvironmental ,ward
;<<- ' 4roduct rated best for 5uality and (+0 by +tiftung #arentest
;<<- ' adidas Group among *op %mployers of the Kear
;<<. ' %nvironmental )anager of the year
;<<;L;<<> ' 3est +ustainability 0eporting
2014 ADIDAS GROUP AMONG THE "GLOBAL 100 MOST SUSTAINABLE
CORPPORATIONS IN THE WORLD" FOR 10TH TIME IN A ROW; FIRST TIME IN
TOP 10 - RANKED 8TH
9n Banuary ;<=>, the adidas Group made it for the tenth consecutive time into the ranking of
the Global 100 Most Sustainable Corporations in the World. 2or the $rst time ever, the company
made it into the top =< of the list - it is ranked @th.
*he Global 100 is an annual pro:ect initiated by (orporate Mnights, a *oronto-based media and
investment advisory company. *he media arm publishes Corporate Knights Magazine, the worlds
largest circulating magaEine focused on responsible business. *he investment advisory
arm, Corporate Knights Capital, builds indexing solutions and market-beating portfolios for
institutional clients.
6aunched in ;<<., the Global 100is announced each year at the #orld %conomic 2orum in
8avos.
)ore information about the Global 100 Most Sustainable Corporations in the World.
2013 - ADIDAS AG INCLUDED IN DOW JONES SUSTAINABILITY INDICES FOR 14TH
TIME - INDUSTRY LEADER FOR 10TH TIME
2or the =>th consecutive time, adidas ,G has been selected to :oin the 8ow Bones
+ustainability 9ndices (8B+9!, the worldHs $rst global sustainability index family tracking the
performance of the leading sustainability-driven companies worldwide. 9n the N*extiles, ,pparel
O 6uxury Goods 9ndustryP, adidas ,G was rated as industry leader in sustainability issues and
corporate responsibility for the tenth time.
*he indices serve as benchmarks for investors who integrate sustainability considerations into
their portfolios, and provide an e&ective engagement platform for companies who want to
adopt sustainable best practices.
*he annual review of the 8B+9 family is based on a thorough analysis of corporate economic,
environmental and social performance, assessing issues such as corporate governance, risk
management, branding, climate change mitigation, supply chain standards and labour
practices.
)ore information can be found at Dow Jones Sustainability Indexes.
2013 - ADIDAS AG AGAIN INCLUDED IN THE STOXX GLOBAL ESG LEADERS
INDEXES
,s of +eptember ;<=A, adidas ,G is once again included in the +*CCD Global %+G 6eaders
indexes. *he index family is made up of three specialised indices for the categories
environmental, social and governance, and one broad index which sums up the specialised
indexes. *hese indexes are1 +*CCD Global %+G %nvironmental 6eaders, +*CCD Global %+G
+ocial 6eaders, +*CCD Global %+G Governance 6eaders and +*CCD Global %+G 6eaders.
*he index family is based on relevant key performance indicators (M49s! provided by the index
partner +ustainalytics, a leading global provider of %+G research and analysis.
)ore information about STOXX.

2013 - CONTINUED INCLUSION IN THE FTSE4GOOD INDEX
9n ;<=A, the adidas Group was again included in the 2*+%>Good 9ndex, which selects
companies that demonstrate ongoing commitment to environmental sustainability, strong
$nancial performance, a positive relationship with stakeholders and dedication to upholding
and supporting human rights.
2*+% Group con$rms that adidas ,G has been independently assessed according to the
2*+%>Good criteria, and has satis$ed the re5uirements to become a constituent of the
2*+%>Good 9ndex +eries. (reated by the global index company 2*+% Group, 2*+%>Good is an
e5uity index series that is designed to facilitate investment in companies that meet globally
recognised corporate responsibility standards. (ompanies in the 2*+%>Good 9ndex +eries have
met stringent environmental, social and governance criteria, and are positioned to capitalise
on the bene$ts of responsible business practice.
)ore information on FTSE4Good.
2013 RECONFIRMED INCLUSION IN THE ETHIBEL PIONEER AND ETHIBEL
EXCELLENCE INVESTMENT REGISTERS
adidas ,G has been selected for inclusion in the %thibel 49N%%0 and %thibel %C(%66%N(%
9nvestment 0egisters since Bune ;<, ;<=A. *his selection by 2orum %*/93%6
(www.forumethibel.org! indicates that the company can be rated as a sector leader in terms of
(orporate +ocial 0esponsibility ((+0!.

2012 - INCLUSION IN THE CARBON DISCLOSURE LEADERSHIP INDEX FOR
GERMANY, AUSTRIA AND SWITZERLAND
%very year, we report our (; emissions, our reduction targets and strategies to achieve these
targets, via (84, which is an independent not-for-pro$t organisation that holds the largest
collection globally of self-reported climate change data. 9n ;<=;, we improved our scores
considerably from ->( to I=3, and are therefore listed in the (arbon 8isclosure 6eadership
9ndex for Germany, ,ustria and +witEerland for ;<=;.
n a voluntary basis, (84 re5uests information on (;emissions, reduction targets, risks and
opportunities of climate change from the worlds largest companies on behalf of J;;
institutional investor signatories. *he information provided is evaluated and published by (84
to increase transparency around climate-related investment risk and commercial opportunity,
and to drive investments towards a low-carbon economy.
)ore information can be found at CDP.
INCLUSION IN THE VIGEO GROUP INDEXES
adidas ,G is included in the Figeo Group 9ndexes ' the %uronext Figeo 9ndexes (%uronext Figeo
%uroEone =;<, %uronext Figeo %urope =;< and %uronext Figeo #orld =;<! as well as the
%thibel +ustainability 9ndexes %xcellence %urope O Global. *he %uronext 9ndexes are released
in partnership with %uronext and are composed of companies with the most advanced
performance in corporate responsibility. *he %thibel indexes consist of companies that meet
$nancial and sustainability criteria established by the independent organisation forum %thibel.
*he Figeo Group measures companiesH performance in the $eld of sustainable development
and social responsibility to supply this information to asset managers.
)ore information on the Vigeo Group.
INCLUSION IN THE ECPI INDICES
+ince 8ecember ;<<I, adidas ,G has been included in the %(49D 9ndices.
%(49 is dedicated to environmental, social and governance (%+G! research and index
development, calculation and publication. %(49 o&ers a wide range of %+G indices built using
its proprietary %+G
0ating )ethodology (positive screening! and controversial sector exclusion (negative
screening!.
)ore information about ECPI.
2011 SILVER MEDAL FOR ADIDAS AG AS 'SUSTAINABLE RETAIL COMPANY 2011'
,s part of a pro:ect called 7+ustainable 0etail (ompany ;<==7, the F%030,G(/%0 9N9*9,*9F%
e.F. (a federal consumer association! awarded the adidas Group the silver medal.
*he pro:ect, which was supported by the 2ederal %nvironment )inistry and the 2ederal
%nvironment ,gency, assessed the social and environmental activities of the retail business in
a comprehensive and cross-sectoral way. *he survey (developed by Qko-9nstitut e.F.! included
industry-speci$c 5uestions related to the sustainable engagement of companies along their
supply chain, from the production of raw materials to transport and waste disposal.
2urther information is available at www.nachhaltig-einkaufen.de(in German only!.
2009 - BEST RATING BY EUROPEAN CONSUMER ORGANISATIONS
9n a running shoe test by nine leading %uropean consumer organisations, the adidas Group was
rated $rst for managing corporate responsibility issues. Gnder the leadership of the
9nternational (onsumer 0esearch O *esting (9(0*! organisation, nine %uropean consumer
organisations ' including the German consumer organisation +*92*GNG #,0%N*%+* ' carried
out a comprehensive research pro:ect into the social and environmental production context of
running shoes from di&erent brands, including adidas and 0eebok.
*he excellent rating of the adidas Group related to labour, health, safety and environmental
conditions in the manufacturing process is the result of an in-depth evaluation by 9(0* and the
independent monitoring organisation %NG,G%8 which reveals the consistent performance of
the adidas Group and its suppliers.
2008 RE-ACCREDITATION OF THE ADIDAS GROUP'S MONITORING PROGRAMME BY
THE FAIR LABOR ASSOCIATION
9n =III, the adidas Group :oined the 2air 6abor ,ssociation (26,!, a non-pro$t multi-
stakeholder coalition of private corporations, non-governmental organisations and universities.
,s a member, the adidas Group is sub:ect to external monitoring by independent monitors,
participation in the 26, third-party complaint system and public reporting.
9n ;<<., our monitoring programme was among the $rst to receive 26, accreditation. *he
accreditation signi$es that we are in substantial compliance with 26, re5uirements to
implement a rigorous workplace code of conduct in factories making our products. 0e-
accredited in ctober ;<<@, the Groups next accreditation is planned for ;<=A.
)ore information about the FLA.
2007 B.A.U.M. ENVIRONMENTAL AWARD 2007 FOR FRANK HENKE, SOCIAL &
ENVIRONMENTAL AFFAIRS, ADIDAS GROUP
9n Bune ;<<J, 2rank /enke received a 3.,.G.). %nvironmental ,ward on behalf of the adidas
Group. /is personal contribution and adidas commitment to improve the social and
environmental conditions in its international supply chain were given special mention. *he
award is granted only to citiEens who have been working extensively towards better
environmental protection and who deal with social issues and sustainable development.
3.,.G.). was founded in =I@> by a group of German entrepreneurs who wanted to support
each other in implementing environmental management within their companies. +ince then,
more than .<< companies as well as non-pro$t organisations, institutions and individuals have
become members of 3.,.G.). *oday 3.,.G.). is the %uropean business communityHs largest
environmental initiative.
2or further information visit www.baum-umweltpreis.de.
2006 PRODUCT RATED BEST FOR QUALITY AND CSR BY STIFTUNG WARENTEST
3efore the ;<<- 292, #orld (upR in Germany, the adidas S*eamgeist match ball obtained the
best rating of all ball products tested by the German consumer organisation +*92*GNG
#,0%N*%+*. ur S*eamgeist match ball was chosen not only for its functionality, 5uality and
material safety but also for the suppliers working conditions and the overall (+0 ((orporate
+ocial 0esponsibility! performance of the adidas Group.
+*92*GNG #,0%N*%+* has been assessing the social and environmental performance of
companies in product manufacturing since ;<<>. 8uring the evaluation process we provided
detailed (+0 information about the Groups social and environmental programmes and
initiatives, the products and the supplier sites. 4art of the rating approach was the external
validation and veri$cation of information we submitted. Feri$cation audits were conducted at
the two supplier sites in *hailand and 4akistan, following a veri$cation visit to our
/ead5uarters in /erEogenaurach, Germany.
)ore information about STIFTUNG WARENTEST.
2006 ADIDAS GROUP AMONG TOP EMPLOYERS OF THE YEAR
*he adidas Group is voted one of the *op %mployers in Germany by 7karriere7 magaEine. *he
overall ranking, which was conducted by the (orporate 0esearch 2oundation, listed adidas ,G
as number six in the list of *op %mployers in Germany. 9n the category 7Bob +ecurity7, adidas
,G came a close second? in the category 7)arket 6eader7, adidas ranked third.
,lso in ;<<-, we ranked second in a list of the =<< most attractive employers for business
students according to N*he %uropean +tudent 3arometerP, a survey of university students
across => %uropean countries.

2005 ENVIRONMENTAL MANAGER OF THE YEAR
*he #orld #ide 2und for Nature Germany (##2! and German business magaEine (apital
named adidas Groups (% /erbert /ainer 7Qkomanager des Bahres7 (%nvironmental )anager
of the Kear!. *he :ury valued the companys e&orts in improving the ecological and social
conditions in the factories producing its products.

2002/2004 BEST SUSTAINABILITY REPORTING
*he German (hamber of 4ublic ,ccountants awarded the 73est sustainability reporting7 priEe
to the adidas Group for its ;<<; and ;<<> social and environmental reports. *he :ury especially
emphasised the consistently high 5uality of the sustainability reports and the proactive
management of speci$c issues.