Here’s How Adidas Is Driving a Sustainable Circular Economy
Sustainability is on the lips of every industry these days. With many experts now stating that mankind has foolishly missed the deadline and that climate change is now an inevitability, the mission switches from prevention to mitigation.
This means brands wanting to succeed in the future are going to need to put their green credentials front and center and promote sustainable thinking throughout their operation.
60% of customers have said sustainability of products is an important criterion for making a purchase decision and brands which invest in ESG initiatives enjoy 10-20% faster growth and higher valuations than their less sustainable peers. Strong ESG credentials are also good for the bottom line, driving down costs by 5-10%.
In short, sustainability is good for the planet and good for business – something sportswear brand Adidas understands all too well.
Adidas
When it came to the carbon footprint of producing its world-famous athletic shoes, Adidas knew it could do better and wanted to incorporate sustainability into every aspect of its operation – including the returns department.
This led the storied brand to launch its innovative Choose to Give Back initiative in October 2021 – a new policy which would help its customers extend the life of their footwear and create a circular economy where as little product is wasted as is possible.
"We believe that great performance shouldn’t come at the cost of the environment," said Adidas’ Senior Vice President of Sustainability, Katja Schreiber. "That’s why we’re committed to establishing a circular future for sportswear, and with the Choose to Give Back program are helping people to see new possibilities to give old gear new life."
With the program, members of Adidas’ loyalty scheme Creator’s Club can use their bespoke app to send used clothing from any brand in to be recycled into new products. Returned items are then processed by thredUP’s Resale-as-a-Service (RaaS) platform to ensure they are resold where possible or recycled into new products. Customers print out a prepaid shipping label via the app and send the items off. They then have additional rewards credited to their Creator’s Club account for participating in the scheme – up to 200 membership points and up to $40 in vouchers.
"Adidas has a reputation for driving innovative, sustainable solutions globally, and thredUP is thrilled to support their latest initiative to encourage more circular habits among consumers," said thredUP Senior Vice President, Pooja Sethi. "By enabling resale at scale with customizable solutions for leading brands and retailers, we’re keeping high-quality clothes in use longer and fighting fashion waste."
The most interesting part of the initiative is that it accepts clothing from any brand, not just Adidas products. This encourages customers to finally get around to sorting out their wardrobe and putting those items which don’t see regular wear – or indeed have maybe see a little too much – back into the fashion economy.
Baked-in Sustainability
The Choose to Give Back program is just one facet of a commitment by Adidas to make its business more sustainable and builds towards its ambition to use 100% recycled polyester in its products by 2024 as well as a 30% reduction in its carbon footprint by 2030 and achieving carbon neutrality by 2050.
Adidas recently produced its first pair of running shoes which had a total carbon footprint of less than 3kg, which fell far below the industry average of 13.6kg. With carbon emissions of just 2.94kg of CO2e, Adidas believes the shoe – produced in collaboration with Allbirds – is as close to zero carbon emissions as it is possible to achieve.
The fashion industry is one of the biggest contributors to landfill waste with nearly three in five items purchased ending up in the trash. Non-sustainable manufacturing processes also lead to illegal wastewater dumping and microplastic pollution. The industry also consumes nearly 79 billion cubic meters of water annually.
"Over time, greenhouse gas emissions raise Earth’s temperature, creating a ripple effect of ecological degradation," writes Environment. "The fast fashion industry is responsible for nearly 10% of global emissions, powering significant climate change impacts. If the industry continues generating large quantities of air pollutants, our planet will suffer from extreme droughts, agricultural limitations, forced migration and other ecosystem stability challenges."
Final Thoughts
Allowing customers to send in their used clothes to be recycled into new products, and earn rewards for doing so, is a great way to reduce the impact of the fashion industry on our planet. Let’s hope Adidas inspires other brands in the industry to follow suite and help create a greener environment for all.
You can hear Adidas Senior Manager Supply Chain Development, Frank Jaeger speak at Consumer Returns 2022, taking place in October at the Hyatt Regency Austin, TX.
Download the agenda today for more information and insights.