Kasper Rorsted, president of Adidas AG, gestures while speaking throughout a Bloomberg Television interview in London, U.K., on Tuesday, Oct. 1, 2019.
Simon Dawson | Bloomberg | Getty Images
Social media has actually made it simpler for customers to hold business and CEOs liable for their actions, which’s a good idea, Adidas CEO Kasper Rorsted informed CNBC’s Sara Eisen at the CNBC Evolve Global Summit.
“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 stated. “It drives change, it drives responsibility, and it drives transparency.”
The analysis will require the fashion business, which produces 8% to 10% of worldwide carbon emissions, to end up being eco-friendly, Rorsted stated.
“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 stated. “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 actually made strides to develop sustainable items, consisting of utilizing ocean plastics in its shoes and pledging to make 9 out of every 10 items sustainable by 2025.
“I don’t mean this disrespectfully, but European companies — maybe due to regulation — have tended to be ahead,” Rorsted stated. “We see ourselves as a leader in sustainability, but we actually welcome everybody who has taken a step forward.”
The business partnered with Allbirds to develop shoes with a low carbon footprint, mainly due to the competing shoemaker’s success with developing sustainable items at a low expense, which has actually been an obstacle for Adidas. Allbirds utilizes products such as merino wool, recycled bottles and cardboard and castor bean oil to produce 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 stated. “Succeeding in sustainability is more important than, you know, competing with each other.”
Later this summertime, Adidas will be launching its traditional Stan Smith shoe utilizing a leather stemmed from mycelium, the fibrous root structure of mushrooms. The business expects it will be preferred.
“We have done a recent survey; 70% of our consumers prefer to buy sustainable products. So I think there’s going to be a great demand for this product,” Rorsted stated.
