Lasting relationships with supplier factories: Response from adidas

Summary: adidas has stated that it strives “to engage in long-term and stable relationships with manufacturing partners,” but makes no commitment on targets. The company needs a more systematic approach.

adidas stated that “Over the past 7 years the adidas Group has implemented a sourcing strategy that seeks to balance security with flexibility and growth. To this end, we strive to engage in long term and stable relationships with manufacturing partners.”

Play Fair’s view:

Adidas should take a more systematic approach to delivering its strategy. One useful step could be to incentivise shifts in labour rights improvements by increasing orders, committing to long-term relationships with suppliers who take steps towards this goal, thereby ensuring systemically that suppliers and brands work together to support transitions and changes. Progress on building these long-term relationships should be reported on publicly.