Adidas (OTCMKTS: ADDDF) CEO Kasper Rorsted reiterated the company’s pledge on Wednesday to prioritize sustainability as a key factor in its business model. According to Rorsted, social media has greatly contributed to this goal as consumers are easily able to keep companies and CEOs accountable for their actions.
“I think that the scrutiny on companies and CEOs are much greater today. I think that part of the reason is social media is bringing a transparency and also a news flow out that was never there before,” Rorsted said. “It drives change, it drives responsibility, and it drives transparency.”
Currently the fashion industry produces 8% to 10% of global carbon emissions, however the backlash will push it to transition and become environmentally friendly. Adidas is committed to make at least nine out of ten of its products sustainable by 2025. Rorsted revealed that Adidas views itself as a leader in sustainability within the retail industry. According to its 2020 annual report, the company hopes to reach climate neutrality by 2050.
“This is only the beginning, but the impact plastic has on our global environment is so negative. And as a company that stands for something positive … we really want to make sure that that problem is tackled,” Rorsted said. “It’s so fundamental for companies to really help innovate and find solutions that address the environment, not to be disrupted for the future.”
Adidas has partnered with Allbirds, another shoemaker, to develop shoes with a reduced carbon footprint. Allbirds is known to create sustainable products at a low cost, which has not come easily to Adidas. Allbirds uses materials like merino wool, recycled bottles and cardboard and castor bean oil to manufacture its shoes.
“They’ve done, been doing a great job on certain elements of innovation. We can bring the footwear expertise into it, which they probably had to a lesser extent,” Rorsted said. “Succeeding in sustainability is more important than, you know, competing with each other.”