Statement by Adidas Group in Response to Human Rights Concerns Re London Olympics

Statement by adidas Group in response to human rights concerns re London Olympics March 2012 adidas Group provided the following response in March 2012 to human rights concerns raised with adidas and other sponsors of the London Olympics by a coalition of socially responsible investors.

As a company we recognize the importance of promoting and protecting human rights globally. We also believe that the private sector can play a constructive role in advancing this goal. We recognize, however, our own limitations and ability to influence change on the world stage. We therefore focus our efforts on those areas which are within our own sphere of influence. We do so firstly by striving to operate responsibly, and in a sustainable way, and secondly by safeguarding the rights of our own employees and those of the workers who manufacture our products. In our previous communications to you we have made references to our global policies and standards. We would like to answer to your questions as follows.

1. Develop and implement a policy stating the company’s commitment to respect human rights and repudiation of human trafficking (Does the company have a human rights policy? Does it incorporate human trafficking?);

We would like to direct you to our global Human Rights Charta, the adidas Group position on Human Rights and responsible business practices and the adidas Group Policy on Human Rights and Human Trafficking. The policies and positions are posted on our corporate website under the following links: Error: Reference source not found

 Human Rights Charta: http://www.adidas- group.com/en/sustainability/assets/employees/adidas_Group_Labour_Rights_Charta_May_2 011.pdf

 adidas Group position on Human Rights and responsible business practices: http://www.adidas- group.com/en/sustainability/assets/governance/Human_Rights_Responsible_Business_Pract ices_QA_July_2011.pdf

 adidas Group Policy on Human Rights and Human Trafficking http://www.adidas- group.com/en/sustainability/assets/governance/2011_Oct_Policy_on_forced_labour_and_hu man_trafficking.pdf

2. Conduct an assessment of actual and potential human rights impacts, including human trafficking and modern day slavery (Has the company conducted human rights impact assessments and identified risks from human trafficking?); Systematic analysis about human rights issues is conducted in the process of the development and regular update of our country risk profiles that form the basis for supplier monitoring program and help us to focus on systemic issues in a certain country. Furthermore, we operate confidential worker hotlines in key sourcing countries that give workers the opportunity raise concerns directly. These hotlines are operated by local NGOs and their feedback help us to identify issues to be addressed to factory management.

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3. Integrate policies and assessments into internal oversight systems and monitoring programs (Can the company demonstrate implementation and monitoring of its human rights program?); Here we would like to refer to information as provided in the adidas Group Policy on Human Rights and Human Trafficking (please see answer 1)

4. Training (Does training extend to employees, contractors and vendors? Which topics have been addressed? How often is training conducted?); and Here we would like to refer to information as provided in the adidas Group Policy on Human Rights and Human Trafficking (please see answer 1)

5. Publicly report progress annually (Does the company issue a public report that details programs, policies and practices related to human trafficking?). We regularly report about progress against our annual targets through annual sustainability report that also covers the type and relative frequency of findings from our supplier monitoring as well as the performance of our suppliers. These findings refer to the entire set of standards we expect our suppliers to meet. Please see information we had disclosed in our 2010 sustainability report: http://www.adidas-group.com/en/SER2010/Default.aspx

As a partner of the 2012 London Olympic Games the adidas Group has committed to fully adhere to London Olympics Sourcing Code, in particular with the principle of Responsible Sourcing Practices, including compliance with the ‘Complaints and Dispute Resolution Process’ as specified in the code. Error: Reference source not found

All direct suppliers and sewing subcontractors selected to manufacture LOCOG licensed products are required • to meet the Workplace Standards, the adidas Group Code of Conduct, which is consistent with the elements of the ETI base code the LOCOG code refers to; • are fully disclosed in the SEDEX system; • are subject to regular labour, health and safety compliance inspections by adidas Group SEA compliance staff; • meet a defined Key Performance Indicator (KPI) rating for factories’ compliance performance; • have a management plan in place that details the factory’s compliance program.

Frank Henke Global Director Social & Environmental Affairs adidas Group