Adidas’ Strategy for Procurement Traceability

How Adidas is increasing its procurement traceability strategy in its drive to increase sustainable and recycled sourcing

Sportswear giant Adidas is following a strategy to reach 100% recycled polyester sourcing in its supply chain, and implementing sustainability-centric technology, materials, design and manufacturing across 90% of the products by 2025. To reach these ambitious targets the company is following a programme of developing its technology to trace supplies within its supply chain. 

It has adopted technology from SaaS company TrusTrace, which provides real-time traceability to capture data from procurement transactions as products and materials move through the value chain and manufacture. It makes sure finished goods are delivered with a full traceability history, rather than a ‘top-down’ traceability model which is less reliable because of a reliance on estimations rather than accurate and traceable data. 

Spotting waste in Adidas’ supply chains 

The Certified Material Compliance solution can also assist manufacturers spot waste within their procurement networks by intelligently calculating gaps between inputs and outputs of materials.

“As part of its commitment to sustainability, Adidas has worked with TrustTrace to gain more visibility into our complete supply chain, down to the material level,” says Katja Schreiber, Senior Vice President of Sustainability at Adidas. “The information gleaned from this will help us create even more transparency of our sustainability efforts.”

The strategy is helping Adidas secure increased transparency in its supply chain by streamlining supplier data and certification collection to mapping the entire chain of procurement and production.  

In 2023 Adidas announced they had achieved 96% recycled polyester usage in their products, which leaves it in line to achieve their objectives earlier than initially expected.  

“At Adidas, we constantly strive to take innovation to the next level, and we are proud of the substantial steps we are taking in the right direction. In 2017 adidas made a commitment to replace virgin polyester with recycled wherever possible by 2024, and we know that it is important that we continue to share our progress and deliver against that commitment," says Viviane Gut, Senior Director of Sustainability.

"But while we are proud, this is a step, not a solution. There is still much more that we want, and need, to achieve so we can become a bigger part of the solution than the problem. We are as motivated as ever to keep innovating and collaborating to create new possibilities”.

TrusTrace investment and growth strategy  

It comes after a recent investment of $24 million growth funds in TrusTrace led by Circularity Capital, a specialist investor in businesses that enable the circular economy, with participation from existing investors Industrifonden and Fairpoint Capital.

The added investment will help the company increase its global expansion ambitions by strengthening its presence in key markets, continuing product innovation and expanding collaborations. 

“A growing number of fashion and textile brands are adopting traceability to support their sustainability goals and ensure competitiveness in the face of mounting regulations and consumer pressure,” says Shameek Ghosh, CEO and Co-Founder of TrusTrace. 

“The completion of this new growth investment is proof that traceability lies at the core of sustainable transformation. Backed by the new funding, TrusTrace will continue to be the fashion industry’s trusted partner for discovering and managing supply chain risk, ensuring compliance and driving true sustainability across all value chains.”

“We are delighted to be partnering with Circularity Capital for the next phase of our growth, the combination of their specialist expertise in the circular economy and powerful international network makes them a strong value-added investor for us.” 

Trustrace Completes (U.s.) $24 Million Growth Investment Led By Circularity Capital To Drive Global Expansion (Credit: TrusTrace)

Read more about how Adidas manages its supplier relationships.  

 

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