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adidas Group
2011 Annual Report
GROUP MANAGEMENT REPORT – OUR GROUP
108
2011
02.8 Sustainability
02.8
Training to achieve sustainable compliance
Our SEA team offers specific training courses and workshops for
factory supervisors and managers to help them apply our Standards
and implement best practices. These workshops include, for
example, introductory training on our Workplace Standards and
SEA operating guidelines and detailed training on effective health,
safety and environmental practices. Furthermore, we promote
the establishment of structures that actively involve workers and
management of our suppliers, as well as local employee associations
and non-governmental organisations (NGOs). In order to strengthen
personnel capacities throughout our company, our SEA team
also organises workshops for licensees, agents and adidas Group
business entities. In this way, the consideration of acceptable working
conditions becomes a routine part of business activities. In 2011, the
SEA team conducted 170 training sessions and workshops (2010: 193)
DIAGRAM 01 .
Monitoring through factory inspections
The SEA team assesses compliance with our Workplace Standards
by means of factory inspections. Our auditors check performance
against a customised risk list for each factory that is monitored. The
methodology is linked to a factory rating which measures the effec-
tiveness of compliance systems and the work of their administrators.
This enables us to precisely determine training needs at our suppliers’
factories. During 2011, we conducted 1,591 factory visits (2010: 1,451
visits) involving management and worker interviews, document
reviews, facility inspections and training sessions at different levels in
our supply chain DIAGRAM 02 .
In addition to our own monitoring activities, we value independent
and unannounced assessment by third parties to demonstrate the
credibility of and provide verified information about our programme
to stakeholders. As a member of the Fair Labor Association (FLA),
the adidas Group is subject to external assessment by independent
monitors, participation in the FLA third-party complaint system and
public reporting. In 2008, the monitoring programme of the adidas
Group was re-accredited by the FLA. This decision was based on
independent factory monitoring and verification reports of supplier
facilities, and a thorough audit of monitoring protocols, training
programmes and auditing systems. The next review and accredi-
tation cycle is scheduled for 2012. Since joining the FLA, more than
280 Independent External Monitoring (IEM) audits and verification
visits have been conducted at adidas Group suppliers.
Warning-letter system to enforce compliance
Where a manufacturing supplier is performing poorly in terms of
Workplace Standards compliance, we will work closely with them to
find solutions. However, when we find ongoing and serious instances
of non-compliance and a lack of commitment from factory management
to address the issues, we send out a formal warning letter including
a notification to factory management that their business relationship
with the adidas Group is in jeopardy. Three warning letters result in
a termination. In 2011, we terminated our business relationship with
13 suppliers for compliance reasons (2010: 0 terminations).
Strategic approach to driving environmental progress and
tackling climate change
Tackling climate change poses a number of challenges for our
company and our manufacturing partners. As a result of an analysis of
our environmental impacts, we have put the Environmental Strategy
2015 in place. The Strategy is targeted to substantially improve our
environmental footprint. This will enable us to offer more sustainable
products to our consumers. The Strategy follows a vision and mission
and sets clear targets to be reached by 2015. These targets cover
our whole value chain across all management processes, reaching
from product design and creation to sourcing and manufacturing to
our stores and all other points of sale. The focus is on energy, water
conservation and discharge, waste and chemicals, and on becoming
more thoughtful and efficient in using resources as well as helping
reduce operational costs. More details on our Environmental Strategy
can be found on our website at : WWW.ADIDAS-GROUP.COM/SUSTAINABILITY .
01 Number of trainings
2011 170
2010 193
2009 216
2008 251
2007 267
02 Number of factory visits
2011 1,591
2010 1,451
2009 1,592
2008 1,323
2007 1,007