Abstract

In 2015, Germany-based apparel and sportswear giant Adidas and Parley for the Oceans (Parley), a green non-profit organization, entered into a collaboration to combat plastic pollution in the oceans. The collaboration, known as Adidas x Parley, was committed to intercepting plastic debris from oceans and coastal areas, and preventing its entry into the marine ecosystem. The collected plastic was recycled and integrated into Adidas products, thereby promoting the principles of a circular economy. Parley's expertise in environmental conservation aligned seamlessly with Adidas's focus on innovation. Adidas had set itself the ambitious goal of becoming plastic free by 2024 by using 100 percent recycled polyester. It also wanted to make all production climate-neutral by 2050. However, industry experts believed that achieving this goal would require a multifaceted approach. Reducing plastic waste across the supply chain would be challenging as it would require long term collaboration with various stakeholders. Additionally, while transitioning to a circular economy, ensuring that the products were easily recyclable, and that there were effective recycling systems in place could be complex. How can Adidas address these challenges? Can it become plastic free by 2024? How can it achieve climate neutrality by 2050?

Learning Objectives

The case is structured to achieve the following Learning Objectives:

• Recognize the problem of plastic pollution in the oceans.
• Analyze the measures adopted by the sportswear industry to embrace sustainability.
• Design a strategy that sportswear companies can adopt to create a circular business model.

Keywords

Partnership; Sustainability; Circular Economy; Product Development; Product Design; Sustainability Goals; Competitive Advantage