Adidas Profitable Energy Fund

Photo: Adidas

Photo: Adidas

Adidas has established a greenENERGY Fund that has committed USD 2M to energy efficiency projects within the group in 2013.

The apparels company did seven pilot projects in 2012 where they invested USD 690k. 1,401 tons of CO2 were saved as a result and the projects delivered 37% return on investment.

Portfolio
The fund has been set up on a portfolio basis. Each project is evaluated based on their impact on the portfolio.

The fund targets a 20% Internal Rate of Return (IRR) across the portfolio, but allows flexibility at individual project level.

This way, energy efficiency projects with great financial returns can be combined with high impact carbon projects that have a lower IRR. 

If an individual carbon reduction project falls below the 20% return threshold, it competes with other projects on the basis of tons C02 reduced per dollar invested. The higher the MT CO2/$, the higher priority it becomes to finance.

In this way, the fund is engineered to maximize Net Present Value and carbon reduction.

Environmental Defense Fund
Adidas is working with Environmental Defense Fund’s Climate Corps program, which brings in graduates on internships, to identify energy and money-saving opportunities across its portfolio.

Adidas is investing in retail LED upgrades, building automation, lighting controls, process improvements and much more. And working diligently to track the impacts.

The fund contributes to Adidas Green Company 2015 targets for reductions in energy (20 percent) and carbon (30 percent).

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