QUEENSLAND UNIVERSITY OF TECHNOLOGY Johnson, 2016 The Sustainability of adidas Parley Prepared for: DEB100 Prepared by: Suzanne Wootton April 24, 2017 Student Number: n9180567 Word Count: 1566 QUEENSLAND UNIVERSITY OF TECHNOLOGY Introduction 3 Up-cycle, Down-cycle, Danger-cycle 4 WHAT IS UP-CYCLING, DOWN-CYCLING, AND DANGER-CYCLING? 4 STRENGTHS 4 WEAKNESSES AND THREATS 4 OPPORTUNITIES 5 Nature as culture 6 WHAT IS NATURE AS CULTURE? 6 STRENGTHS 6 WEAKNESSES AND THREATS 6 OPPORTUNITIES 7 Public, Private, Non-Profit 8 WHAT ARE PUBLIC, PRIVATE, AND NON-PROFIT COMPANIES? 8 STRENGTHS 8 WEAKNESSES AND THREATS 8 OPPORTUNITIES 8 Conclusion 9 Bibliography 10 QUEENSLAND UNIVERSITY OF TECHNOLOGY INTRODUCTION The Three Stripes are an iconic symbol of Adolf Dassler himself. A symbol of social acceptance to the Superstar clad teenagers, or perhaps a symbol of childhood to the Gazelle aficionados. Above all of these, though, one shoe has triumphed as a symbol of sustainability. Laced through the pages of magazines, the adidas Parley collaboration has been making waves around the world since 2015. adidas, 2015 It was a heart warming moment when adidas announced the birth of a collaboration with Parley, saviours of the sea. adidas, since then, has vowed to continue their ongoing work with Parley, using recycled plastic from Maldivian waters to create up cycled sportswear. In the age of disposable products, plastic can seem inescapable. With some plastic items only having a life span of a few seconds, it is not hard to believe that 8.8 million tonnes of plastic gets dumped into global waters annually (Sifferlin, 2015). adidas’ collaboration with Parley to combat these world issues is “GARBAGE IN, DOESN’T admirable and innovative. The company has pledged to turn ‘threat HAVE TO BE GARBAGE into thread’ (adidas 2017), with each shoe containing [on average] eleven plastic bottles (Sneaker Freaker, 2016). Without closer OUT,” ADIDAS, 2017. scrutinization, however, it is impossible to perceive from an outsider standpoint just how sustainable the Parley collaboration really is. Within this report, adidas’ approach to sustainability will be unravelled and closely interrogated. The approach will be scrutinized and analyzed in relation to three main factors of sustainability - social, ecological, and economical. It appears through up cycling and encouraging nature in our everyday culture, not only is adidas encouraging admirable ethics, but simultaneously increasing their own profit and global awareness. QUEENSLAND UNIVERSITY OF TECHNOLOGY UP-CYCLE, DOWN-CYCLE, DANGER-CYCLE WHAT IS UP-CYCLING, DOWN-CYCLING, AND DANGER-CYCLING? Thorpe states “almost anything can be recycled if there is someone to collect it, sort it, and reprocess it,” (Thorpe, 2007 40). But what is the difference between up-cycling and re-cycling? Recycling often degrades the original material due to loss of structure and concentration, whereas the art of up cycling does quite the opposite. Up- cycling can be referred to as the transformation of waste materials, into new materials of better quality, or environmental value (Williams, 2016). Up-cycling encourages the reconsideration of the need for new materials, a consideration adidas has grasped and welcomed. STRENGTHS Having launched the first shoe in 2015, adidas has since vowed to produce a million Parley runners by the end of 2017, ensuring that over 10 million bottles will be up cycled, and that is just the beginning. Obviously, the biggest advantage is clearing the oceans of thousands of tonnes of plastic, and perhaps, even more waste. WEAKNESSES AND THREATS From up-cycling, can also come danger-cycling - the dangerous reuse of materials due to carless use of chemicals in the recycling process (Thorpe, 2007 40). Hipcycle, 2016 adidas has successfully combatted this by setting standards for their reproduced materials, such as Econyl in their Parley swim range (Sportsister, 2017). Additionally, we can hope that one day we will live in a world free of plastic waste, threatening the future of the adidas Parley running shoes. QUEENSLAND UNIVERSITY OF TECHNOLOGY OPPORTUNITIES While these threats may seem daunting, they also provide fantastic opportunities for the world renowned company. The hope that one day we might run out of reusable plastics in our ocean opens the door to the possibility of reusing other items of waste, continuing their crusade for environmental sustainability. As a leader in change, it can be hoped that other companies will follow in suit. With adidas owning large scale companies like Reebok and Tailormade, it also grants the company more sway and influence in the world of sustainable textile production (adidas Group, 2017). adidas Group, 2017 QUEENSLAND UNIVERSITY OF TECHNOLOGY NATURE AS CULTURE WHAT IS NATURE AS CULTURE? In this day and age, large emphasis is placed on our own image or success as opposed to the environmental effects they might have. Ecological awareness, the respect of other living organisms and their surroundings, are lacking. We have gotten to the point of destruction where having respect for the environment is no longer a nice idea, it is an essential element for human survival. (Thorpe, 2007 170). Humans lack ecological sympathy because they are afraid to expose their own ignorance. Ignorance is bliss, and many are happy to live by it (Thorpe, 2007 171). Societal pressure and appearances are yet another aspect playing on people’s minds. Do we want to be yet another ‘annoying’ vegans, do we really want to risk being shunned for speaking out? Expressing concerns and fears contrasts with the societal expectation of happiness and success, and that alone represses the want to know more (Thorpe, 2007 171). STRENGTHS adidas, as the world’s second largest sporting company, has great responsibility. With great responsibility comes even greater influence. Along with other sustainability and charity initiatives, such as Aktiv and Dry Dye, adidas has the ability to influence wide audiences (adidas Group, 2017). Education in the early years of life are paramount to forming ethics, morals, and standards (State of Victoria, 2010) . With the company’s vast consumer market and coverage, the brand has the power to penetrate the younger generations and form positive thinking towards sustainability. This not only generates profit, or raises money for their charities, but aides in raising awareness and changing perceptions from the ground up. WEAKNESSES AND THREATS As stated, it is unnerving to some to consider and address the negative impact of their actions. Any company that positions them self far left or right wing poses the possibility of losing customers. adidas took a risk when they released their female only Pureboost X with a mildly controversial Instagram post, but to their luck had positive outcomes. On the other hand, when New Balance hyper polarized the American election, a boycott was called and a large customer basis depreciated instantly (Surowiecki, 2017). “The love you take is equal to the love you make,” Adidas, 2017. QUEENSLAND UNIVERSITY OF TECHNOLOGY OPPORTUNITIES On the other hand, this risk could provide great outcomes or the grand downfall of a sporting company. Environmental sustainability resinates with a larger following than perceived, outweighing the negative risk. The chance to be publicly environmentally sustainable could grant adidas enormous advantages against competition, and ultimately lead the sportswear market in the same positive direction. QUEENSLAND UNIVERSITY OF TECHNOLOGY PUBLIC, PRIVATE, NON-PROFIT WHAT ARE PUBLIC, PRIVATE, AND NON-PROFIT COMPANIES? Public, private, and non profit sectors are used to describe the profit type of a company, and in total, their aim. adidas falls under the public sector, meaning it is owned by shareholders and gains money from sales profits (adidas Group, 2017). A large part of design is often seen as for profit, and in the case of adidas that rings true (Thorpe, 2007 86). That being said, it is becoming more and more common to find large associations taking sustainability into their hands, and in turn generating higher profit. STRENGTHS Sustainability, while sometimes a more costly exercise, can actually be portrayed as a competitive advantage in the market place (Thorpe, 2007 92). adidas as a whole allows workers to have paid leave to do volunteer work, and in turn makes employees happier (Thorpe, 2007 91). Another factor in gaining employee moral advantage is encouraging them to sell a feel good item, or in other words a product without guilt (Thorpe, 2007 93). When worker moral is boosted, it is assumed that customer service is in turn better. Thus, ultimately producing more profit while making for a happy worker, happy customer, and positive environmental impact. More and more of the population is demanding ‘greener’, and by leading the way in doing so creates profit with minimal competition. WEAKNESSES AND THREATS For a company the size of adidas, the cost of sustainability is not a large weakness. In general, the pressure to create something sustainable in a customers price range can be difficult. The items go through an arduous process and many extra hands are employed to ensure quality and safety. For a small business this may pose a threat to their financial gain, however fortunately for adidas the risk of this is extremely low. OPPORTUNITIES Ultimately, as the second biggest sporting company in the world, the profitable gains of having an environmentally sustainable appearance well outweighs the risk of profit loss. The increased initiatives from adidas are already proving to be successful, with their first 7000 pairs of Parley runners selling out nearly instantly. At a price of $200AUD each, it is evident the cost is no issue. QUEENSLAND UNIVERSITY OF TECHNOLOGY CONCLUSION It is clear that adidas has taken a step in the right direction in their collaboration with Parley. The company, only two years into their collaboration, have made a positive ecological footprint by clearing the Maldivian waters of thousands of tonnes of plastic waste.