With a presence in more than 70 countries, and €16.2 billion in annual sales, Decathlon is an undisputed global powerhouse when it comes to sporting goods retail.
As it has expanded around the world, so the French-owned retailer has sought to embed sustainability into its operating model – it has reduced single-use plastics by 57% since 2020 and lowered absolute emissions by 13% since 2021. In May of this year, it joined The Fashion ReModel, a circular fashion initiative that also counts H&M, eBay, and Tapestry as members.
Heading up sustainability transformation and engagement at Decathlon is John Thomas, or ‘JT’ to his friends, who joined the retailer from Lululemon in 2024. SustainabilityOnline caught up with him on the sidelines of the recent Economist Impact Sustainability Week Europe summit in Amsterdam.
“At Decathlon, our sustainability agenda is built around three main material issues: human rights, climate change and decarbonisation, and the end-of-life management of products,” he says. “These areas not only guide our approach to sustainability but also connect to how we create business value from it too.”
Emissions reduction
At the Economist Impact summit, Thomas took part in a panel discussion on the topic of ‘Net-zero supply chains: who’s turning emissions into a competitive advantage?’, and as he explains, Decathlon is aligned with science-based targets, aiming for a 42% absolute emissions reduction by 2030 and net zero by 2050.
“To achieve that, we are reducing the impact of our products, reducing the impact of the energy we use, and adopting new business models that shift from linear to circular,” he says. “Some 99% of our emissions, more or less, come from our supply chain, so engaging with our suppliers is an absolutely critical part of what we do.”
Partnership approach
Decathlon takes a “partnership approach” with a cohort of strategic suppliers to set decarbonisation targets, measure carbon footprints, adopt renewable energy, and implement efficiency improvements. Performance is monitored, and the resulting data is incorporated into an annual supplier panel review.
“It’s a pretty high-touch approach,” says Thomas. “Every year, we’re looking at the holistic performance of our supplier, not just on sustainability, but on a range of other business metrics, and asking ourselves ‘Do we want to do more with this partner? Are they aligned with our values? Are they performing on what we’ve asked them to?'”
With this in mind, all suppliers must adhere to a code of conduct – “which has pretty specific expectations of what we expect,” says Thomas – to ensure that all parties are strategically coordinated, and to facilitate long-term relationships.
“We’re pretty clear on the direction we want to go on when it comes to climate,” says Thomas. “So that gives them a long-term signal, that if you want to be a long-term partner of ours, this is our vision, and this is the expectation.”
Pushing the agenda
Of the 1,200 suppliers Decathlon works with, it works closely with approximately 500 who represent 90% of its production emissions. Many have taken steps to reduce their environmental footprint, such as implementing on-site solar – “a no-brainer, both for them and us”, says Thomas.
Achieving deeper decarbonisation will require more complex changes, however.
“We’re making progress, but it’s challenging,” he says. “We’ve done the easy stuff, but the harder stuff is coming – achieving those extra efficiency improvements. Right now, we’re at about 65% renewable electricity across our production base. How do you go from 65% to 100%? Getting from zero to 65% and from 65% to 100% are very different tasks.”
On a geographical basis, he adds that China has provided the clearest policy signals on long-term energy direction, giving confidence to suppliers to invest in renewable solutions. “It has enabled a lot of certainty – if we make this investment, it will be incentivised,” says Thomas.
In Europe, however, the lack of a unified, coherent energy outlook – “in some places it’s renewables, in some places it’s nuclear, in some places it’s efficiency measures,” he adds – has made progress less predictable.
“There isn’t even as clear a signal in Europe about the future of renewables, compared to what you see in China,” he says. “You get the sense that China realises the importance of this, and are embracing this shift.”
As a result, Decathlon’s decarbonisation strategy varies from region to region, due to differences in energy markets and policy environments. Where possible, the retailer encourages its suppliers to sign up to renewable electricity contracts like green tariffs or power purchase agreements, but these are, in many cases, unavailable, or unreliable. Thomas highlights the Asia Clean Energy Coalition, a non-profit initiative led by the Climate Group, the Global Wind Energy Council (GWEC) and the World Resources Institute (WRI), that brings together companies to align industry demand and influence regional government policy.
“Multi-stakeholder collaborations like this are really high value, because companies face similar challenges in these regions, and governments want to know whether businesses will procure the electricity if certain measures are taken. Energy markets are dynamic, so alignment is essential.”
The importance of circularity
Circularity is another key element of Decathlon’s sustainability strategy, an approach that began with the introduction of ‘repair workshops’ in its stores, where customers could extend the product life of bikes, fitness equipment and some textiles.
“That was really the starting point with the customer – they want to extend the life of their product, so how can we support them in doing that?” says Thomas.
The company appointed a dedicated global head of circularity, Laurence Fontinoy – the former CEO of bicycle maker Woom – to formalise its circular strategy into an effective business model.
“We worked closely with BCG to determine that if we wanted to scale circularity as a company, how would we do that?” says Thomas. “We realised that some of the circular business models that we were piloting, particularly rental, subscription models, and second-hand, were growing much faster than our core business, like 20% or 30% faster. So, once we started realising that these are potential growth drivers for us, and we could devote some time and resources to them, our circularity team has really had the opportunity to pilot, test, and scale.”
Currently, circular offerings account for 3% of total sales.
“That sounds like a small number, but it’s around €500 million in sales,” says Thomas, who adds that the circularity model particularly appeals to Gen Z consumers, and those looking for high quality products at a lower cost.
“It’s a way for us to connect with new consumers, and turn them into loyal consumers,” he says. “Yes, part of it is probably driven by price sensitivity, but I also think that consumption habits are changing. There are a lot of reasons people want to buy second-hand or or rental – it’s more flexible than always buying a new product.”
Value and values
As Decathlon is a family-owned company, it isn’t as hamstrung by quarterly reporting or stakeholders expectations as its publicly-listed peers, and Thomas believes that the long-held values of the controlling Mulliez family are well aligned with its sustainability agenda.
“The values of the family are pretty clear, and it is around creating shared value – in fact, they used that terminology well before it was considered popular in the social discourse,” he says. “Also, if we think of the people that come to work at Decathlon – our teammates, as we call them – they’re sport lovers, they love the outdoors, they see what’s happening to the environment, and they care about it. In many cases, they’re the ones that are pushing this agenda the fastest.
“As a team, I think we have a mature approach to understanding that value is not always financial. Yes, we have to deliver results, but it doesn’t have to come at any cost.”
Learn more about Decathlon’s sustainability agenda at www.sustainability.decathlon.com
