V-ECON Audit: Adidas

Supply Chain & Sourcing Relationships

Adidas maintains a global licensing agreement with Delta Galil Industries Ltd. (TASE: DELG), an Israeli textile manufacturer, for the production of underwear collections under the Adidas Badge of Sport and Originals labels. The agreement commenced in May 2022 ¹.
Delta Galil operates 7 factories across 6 countries, including 3 socks factories in Israel, Bulgaria, and Turkey; 2 underwear factories in Egypt and Thailand; and 2 seamless activewear factories in Israel and Jordan. The specific production location for Adidas underwear is not publicly disclosed ².
Adidas Israel Ltd. (company ID 513404244) is a wholly-owned subsidiary of Adidas AG, registered at 8 Hamelacha, Holon, Israel. It serves as the operational entity for Adidas operations in Israel ³.
No public evidence identified regarding Adidas sourcing products from West Bank, Jordan Valley, or Golan Heights settlements via third-party distributors or white-label arrangements.
Delta Galil Industries Ltd. and its subsidiary Delta Israel Brands Ltd. ARE listed in the UN OHCHR settlement database under category (g) “use of natural resources” ⁴⁵.
Delta Israel Brands (80%-owned by Delta Galil, TASE: DLTI) operates retail branches in Pisgat Zeev and Ramot (occupied East Jerusalem) and Maale Adumim (occupied West Bank). A warehouse in Barkan industrial zone (West Bank) was documented in 2011 ⁶⁷.

No public evidence identified specifically linking Adidas to products labeled as originating from West Bank, Jordan Valley, or Golan Heights settlements.
Adidas publishes a general human rights policy but does not specifically address sourcing or labeling of goods from occupied or contested territories ⁸.
No explicit occupied territory sourcing policy was found in public sustainability reports ⁸.

Adidas AG acquired the remaining 15% non-controlling interest in Adidas Israel Ltd. on January 31, 2024, achieving 100% ownership of the Israeli subsidiary ⁹.
No public evidence identified of Adidas operating research and development facilities, technology partnerships, or innovation labs within Israel.
Adidas AG (German parent) holds 100% of Adidas Israel Ltd. adidas Levant Limited, a Dubai-based entity, manages Levant region operations and is 100% owned by Adidas AG ¹⁰.
No public evidence identified of Adidas holding investments in Israeli-domiciled companies, Israeli sovereign bonds, or Israel-focused investment funds.
Nassef Sawiris, an Egyptian billionaire nominated as Adidas supervisory board chairman (May 2026), holds approximately 6-7% of Adidas via NNS Group investments. No evidence links him to Israeli defense or settlement investments ¹¹¹².

Adidas maintains retail operations in Israel through a franchise arrangement with Electra Consumer Products (ECP.TA), which acquired 18 Adidas stores in 2022. In May 2023, Electra received the master franchise for most Adidas stores in Israel ¹³¹⁴.
The 2024 sales in Israel increased over 40% compared to 2023 ¹³.
No specific workforce size or tax registration details for Adidas Israel Ltd. were identified in public filings.
No public evidence identified in annual reports, investor presentations, or press releases characterizing the Israeli market specifically.
An Adidas store in Israel was hit by a bomb in March 2026, according to the chief commercial officer ¹⁵.

Adidas Israel Ltd. is an Israeli-domiciled subsidiary of Adidas AG (German parent). The subsidiary was established to operate in the Israeli market ³.
Adidas AG is headquartered in Herzogenaurach, Germany. Adidas Israel Ltd. is registered in Holon, Israel ³.
No public evidence identified of Israeli state ownership stakes, government board appointees, government contracts, or PTE (Preferred Technology Enterprise) status for Adidas.
No governance mechanisms (golden shares, founder shares) tying Adidas operations to the Israeli state were identified.
Adidas AG is NOT listed in the UN OHCHR database of business enterprises involved in settlement activity ⁵.
Adidas ended its sponsorship of the Israel Football Association (IFA) in 2018 following a BDS campaign. The IFA includes six teams based in illegal settlements in the occupied West Bank ¹⁶¹⁷.

Adidas does not publicly disclose Israel-specific revenue or profit figures in its annual reports. The Israel market is not broken out as a separate reporting segment.
No public evidence identified regarding the direction of profit flows between Adidas Israel Ltd. and the German parent. Israeli corporate registry filings for Adidas Israel Ltd. would be required to trace financial flows.
No public assessments or government designations identifying Adidas as a key employer or sector anchor within the Israeli economy were identified.