Fifteen years in, On frames growth and environmental impact as a tension it is learning to manage rather than resolve — releasing data it acknowledges falls short of its own ambitions on wages, emissions and circularity.
Swiss sportswear brand On has released its2025 Impact Progress Report, a document that is notable as much for what it concedes as for what it claims. Published to mark the brand’s 15th anniversary, the 117-page report covers three strategic pillars — decarbonization, circularity and social impact — and is structured in two parts: a narrative section told through employee and supplier voices, and a data-disclosure section aligned with the Swiss Code of Obligations and prepared in anticipation of the European Sustainability Reporting Standards (ESRS).
Absolute emissions up, intensity down, and the clock is ticking
The headline tension in the report is one familiar across the industry: On’s absolute emissions rose 14 percent year on year across Scope 1 and 2, driven primarily by retail expansion. At the same time, its Scope 3 physical intensity — the carbon footprint per unit produced — fell 2 percent compared to 2024 and 7 percent compared to its 2023 baseline. To achieve its science-based target of a 51.6 percent reduction in Scope 3 intensity by 2030, On acknowledges the current rate of progress must accelerate substantially. Renewable energy adoption across Tier 1 and 2 supply chain partners is identified as the primary lever.
On | 2025 GHG Emissions by Category
| Emissions category | 2025 (t CO₂eq) | Share | In SBT boundary |
|---|---|---|---|
| Scope 1 & 2 | |||
| Scope 1 & 2 (market-based) | 1,408 | 0.25% | YES |
| Scope 3 — included in SBT boundary | |||
| Component manufacturing | 145,479 | 25.43% | YES |
| Product manufacturing | 91,204 | 15.93% | YES |
| Raw materials | 90,863 | 15.87% | YES |
| Transportation (upstream & downstream) | 63,552 | 11.10% | YES |
| Non-product goods & services | 55,919 | 9.77% | YES |
| Manufacturing waste | 38,070 | 6.65% | YES |
| Product packaging | 19,003 | 3.32% | YES |
| Scope 3 — outside SBT boundary | |||
| End-of-life treatment of sold products | 29,958 | 5.23% | NO |
| Business travel | 15,306 | 2.67% | NO |
| Other Scope 3¹ | 14,195 | 2.48% | NO |
| Use of sold products | 7,426 | 1.30% | NO |
| Total Scope 3 | 570,974 | ||
| Total (all scopes) | 572,382 | ||
¹ Includes fuel- and energy-related activities, capital goods, waste generated in operations, employee commuting and franchises. Categories 2, 3, 5, 7 and 10–15 are excluded from On’s science-based target (SBT) due to low significance or limited influence, and account for 16% of 2025 emissions.
Source: On Impact Progress Report 2025, p. 54. Data covers On Holding AG and consolidated subsidiaries, reporting period Jan. 1–Dec. 31, 2025.
On also shifted how it measures emissions this year, moving from an economic intensity metric to a physical intensity metric. The change aligns carbon accounting with production cycles rather than revenue cycles, removing the distortion caused by the time lag between when goods are manufactured and when they are sold.
On | Emissions Targets & Progress — 2025 Status
| Target | Commitment | Status | 2025 progress |
|---|---|---|---|
| 2024 | 100% renewable electricity in all offices & stores | ACHIEVED | All On-operated offices and stores powered by 100% renewable electricity since 2023, via power purchase contracts and Energy Attribute Certificates (EACs). |
| 2025 | 100% of Tier 1 suppliers to eliminate coal as direct energy source | ACHIEVED | Target met in 2024 and extended to Strategic Tier 2 upstream partners in 2025. Coal elimination is now a zero-tolerance condition for new supplier onboarding. |
| 2027 | 100% of Tier 1 suppliers to hold science-based targets (SBTs) or be SBT-aligned | ON TRACK | Of 33 Tier 1 partners surveyed voluntarily in 2025, ten have established verified or validated decarbonization targets through the Science Based Targets initiative (SBTi) or equivalent third-party frameworks. |
| 2028 | 100% of Strategic Tier 2 suppliers to eliminate coal as direct energy source | ON TRACK | One Strategic Tier 2 upstream partner still uses coal as a direct energy source as of 2025; that partner has committed to phasing it out by 2027, ahead of the 2028 deadline. |
| 2030 | 100% of Tier 1 suppliers to use renewable electricity | ON TRACK | As of 2024 verified data, 8 of 35 active Tier 1 suppliers (22.8%) use renewable electricity from solar or purchased RE sources, excluding EACs. Overall renewable energy consumption remains low at 8.5% of Tier 1 consumption, making supply chain RE adoption the brand’s stated priority. |
| 2030 | 51.6% reduction in Scope 3 emissions per unit produced vs. 2023 baseline¹ | ON TRACK | Scope 3 physical intensity fell from 10.62 kg CO₂eq/unit (2023) to 9.92 kg CO₂eq/unit (2025) — a 7% reduction vs. baseline, and 2% improvement year on year. Target requires a reduction to approximately 5.14 kg CO₂eq/unit by 2030. Current rate of progress needs to accelerate significantly. |
| 2030 | 42% absolute reduction in Scope 1 & 2 emissions vs. 2023 baseline² | AT RISK | Absolute Scope 1 & 2 emissions rose 14% vs. 2024 and 33% vs. the 2023 baseline, driven by the opening of 43 new retail stores. Vehicle fleet emissions fell 4% vs. 2023, but facility emissions continue to grow. On acknowledges this target is currently at risk. |
¹ SBTi-validated target. Revised in 2025 from previous metric of 55% economic intensity (Scope 3 per dollar value added, 2019 base) to 51.6% physical intensity (Scope 3 per unit produced, 2023 base).
² SBTi-validated target. Revised in 2025 from 46% (2019 base) to 42% (2023 base) to maintain 1.5°C alignment over the updated timeframe.
Source: On Impact Progress Report 2025, pp. 55–56. Higg FEM data referenced at Tier 1/2 level; 2025 Higg FEM verification was unavailable before On’s reporting deadline.
A subscription model retired, replaced by a broader circular programme
The most structurally significant announcement in the report is the discontinuation of the Cyclon subscription service, On’s first attempt at a closed-loop circular economy model. Launched in 2022, the service let subscribers use Cyclon products and return them at end of life in exchange for a new pair. While it demonstrated that high-performance materials could technically be kept in circulation — the Cloudrise Cyclon 1.1, launched in 2025, uses a Speedboard component made from 99.5 percent recycled content derived from post-consumer returns and manufacturing offcuts — the subscription model exposed significant operational constraints.
“The Cyclon subscription taught us some valuable lessons,” said Serena Bonomi, Head of Circularity at On. “Dedicated products require complex, manual take-back systems and high volumes before recycling can even begin, so delays between collecting and processing items are unavoidable.”
In place of the subscription, On has been transitioning to a brand-wide resale, donation and recycling ecosystem, which we have previously reported on in SGIE. Products returned in good condition are prepared for resale; those not suitable for resale are donated through partner organisations; and the remainder is directed to regional recyclers. The programme extends On’s circular services framework, which also includes Onward (a resale and trade-in programme in the US) and CarryOn (a repair initiative in China).
The brand also published a set of product circularity design criteria — covering durability, repairability, recyclability and manufacturing efficiency — to guide future product development.
Living wage target was missed; new data points were added.
On had set a 2025 target to achieve living wage compliance across all Tier 1 suppliers, benchmarked against the Global Living Wage Coalition (GLWC). The report confirms the target was not met. As of 2025, 80.9 percent of assessed Tier 1 factories meet the benchmark, covering 77 percent of the brand’s total production volumes. The target has been extended to 2026.
The shortfall reflects both genuine complexity in global wage systems and a previously limited scope of measurement. In 2025, On expanded its verified factory count from 10 footwear facilities in Vietnam to 21 factories spanning footwear, apparel and accessories across Vietnam, China, Indonesia and Turkey — covering 96 percent of production volumes. It also introduced data from the independent non-profit WageIndicator Foundation to supplement missing GLWC benchmarks in markets where the latter does not publish figures.
On | Living Wage Assessment — Scope Expansion
| 2024 | 2025 | |
|---|---|---|
| Factories verified | 10 | 21 |
| Product categories assessed | Footwear only | Footwear, apparel & accessories |
| Countries covered | Vietnam | Vietnam, China, Indonesia, Turkey |
| Share of production volumes covered | — | 96% |
| Wage benchmark sources | GLWC only | GLWC + WageIndicator Foundation¹ |
| Factories meeting living wage benchmark | — | 17 of 21 (80.9%) |
| Production volumes at compliant factories | — | 77% |
| Factories falling short of benchmark | — | 4 (3 footwear, 1 accessories) |
| Average monthly net wage across assessed factories (USD) | ||
| 2023 | $291 | |
| 2024 | $311 | |
| 2025 | $326 | |
¹ The WageIndicator Foundation (WIF) benchmark was introduced in 2025 to supplement the Global Living Wage Coalition (GLWC) benchmark in geographies where the GLWC does not publish figures. All assessed factories pay above the national minimum wage. Two additional factories were excluded from the 2025 assessment due to late wage data submission, representing 3% of total volumes. Average monthly wage figures cover assessed factories only and are not weighted by production volume.
Source: On Impact Progress Report 2025, p. 78. Reporting period Jan. 1–Dec. 31, 2025.
Living wage compliance has been made a condition for new supplier onboarding, and the brand states it will not partner with suppliers unable to demonstrate compliance or a credible path to it.
On | Supply Chain Audit Findings — FY 2025
Tier 1 factories and Strategic Tier 2 upstream partners
| Audit category | Findings (FY 2025) | Share |
|---|---|---|
| Working conditions | 186 | 49.87% |
| Working hours | 80 | 21.45% |
| Wages and benefits | 48 | 12.87% |
| Subtotal: working conditions, hours & wages — 314 findings (84.2%) | ||
| Compliance with laws and codes | 43 | 11.53% |
| Recognized employment | 7 | 1.88% |
| Environmental impacts & preferred materials sourcing | 4 | 1.07% |
| Discrimination, harassment & inhumane treatment | 2 | 0.54% |
| Freedom of association & collective bargaining | 2 | 0.54% |
| Grievance systems | 1 | 0.27% |
| Anti-corruption & bribery | 0 | — |
| Total findings | 373 | 100% |
Findings cover On’s full Workplace Standards Monitoring Program audit cycle for FY 2025, encompassing all Tier 1 factories and Strategic Tier 2 upstream partners. Audit categories follow On’s internal checklist, which was expanded in 2025 to include additional criteria on foreign migrant workers and building safety; the updated checklist takes effect for the 2026 cycle. In 2025, 100% of Tier 1 factories completed the program. A finding does not equate to a zero-tolerance violation: On operates a graded response system (A–E) with corrective action plans and follow-up audits.
Source: On Impact Progress Report 2025, p. 77. Reporting period Jan. 1–Dec. 31, 2025.
Manufacturing technology and material traceability advance in parallel
On’s LightSpray technology — a robotic manufacturing process in which a seamless filament is precision-sprayed onto a midsole, replacing around 200 traditional assembly steps in roughly three minutes — continues to expand. As of July 2025, every pair of the LightSpray Cloudboom Strike is produced at On Labs in Zurich.
A second LightSpray facility opened near Busan, South Korea in 2026, housing 32 dedicated robots and producing the LightSpray Cloudmonster 3 Hyper. An independent lifecycle assessment (LCA) found a potential 75 percent reduction in carbon emissions for LightSpray-produced uppers compared with conventional On racing shoes, though the assessment excludes the shoe’s bottom unit, packaging and use phase.
On the materials side, the brand has surpassed its 2027 target for recycled or renewable midsole content ahead of schedule, reaching 23 percent across all styles in 2025 against a target of 20 percent.
Product-level carbon data is now embedded in the design process through a partnership with Carbonfact, which provides real-time emissions calculations during development rather than retrospectively. Traceability has also expanded considerably: 447 unique styles were traced to their preferred material sources in 2025, compared with five styles in a 2024 pilot.
On | Preferred Materials Progress — 2024 vs. 2025
| Material category | 2024 | 2025 | Target | Deadline | Status |
|---|---|---|---|---|---|
| Recycled or renewable content in midsole compounds (by weight, all footwear styles) | 12% | 23% | >20% | 2027 | ACHIEVED EARLY |
| Preferred cotton & cellulosics in apparel & accessories (share from preferred sources) | ~80%¹ | 96% | >95% | 2026 | ACHIEVED EARLY |
| Recycled or renewable PET polyester fibers in products manufactured | 84% | 94% | >95% | 2027 | ON TRACK |
| Recycled or renewable polyamide fibers in products manufactured² | 92% | 85% | >95% | 2027 | ON TRACK |
¹ 2023 figure as reported; a 2024 datapoint is not disclosed separately in the report.
² The year-on-year decline in polyamide reflects a methodology change in 2025 — scope was expanded to include polyamide used in footwear in addition to apparel and accessories, alongside improvements in data quality. On classifies the target as on track.
Source: On Impact Progress Report 2025, pp. 60 & 64. Figures refer to products sourced or manufactured in the reporting year (Jan. 1–Dec. 31, 2025).
Source: On, Impact Progress Report 2025. Download the full report (PDF)
Several non-profit and/or independent organizations have been engaged by On to support and audit its sustainability work. Here are their profiles:
Carbonfact is a Paris-based climate technology company that provides product-level carbon footprint software for fashion and footwear brands. Its platform integrates with product development workflows to generate emissions calculations during the design phase, rather than retrospectively. On uses Carbonfact to give its creation teams real-time carbon data alongside performance and weight parameters.
Vaayu is a Berlin-based sustainability data platform specializing in carbon accounting and lifecycle assessment (LCA) for retail and consumer goods companies. The company conducted the independent LCA referenced in the report, which assessed the carbon footprint of On’s LightSpray technology relative to conventional upper manufacturing.
The Science Based Targets initiative (SBTi) is an independent body that validates corporate greenhouse gas emissions reduction targets in line with the goals of the Paris Agreement. Established jointly by CDP, the UN Global Compact, the World Resources Institute and WWF, SBTi provides the methodology and verification against which companies set and report decarbonization commitments. On’s updated Scope 1, 2 and 3 targets were validated by SBTi in the fourth quarter of 2025.
The Global Living Wage Coalition (GLWC) is an alliance of organizations that researches and promotes living wage standards globally. It publishes location-specific benchmarks defining the minimum net income needed to cover basic needs — including food, housing, healthcare, education and transport — for a worker and their family in a given geography. The GLWC benchmark is the primary standard against which On measures wage compliance across its Tier 1 supply chain.
The WageIndicator Foundation is an Amsterdam-based independent non-profit that collects and publishes wage data across more than 130 countries, including living wage estimates for regions and markets where benchmarks from bodies such as the GLWC are not available. On introduced WageIndicator data into its living wage methodology in 2025 to extend coverage beyond its existing Vietnam-focused assessment.
TextileGenesis is a traceability platform purpose-built for fashion and apparel supply chains, enabling brands to track fiber and material provenance across multiple upstream tiers using a blockchain-based chain-of-custody system. On uses the platform to verify that preferred materials — including recycled polyester and preferred cotton — reach the finished product from their declared sources. In 2025, On tracked 447 unique styles through the platform, covering 14.5 million units across 5,000 purchase orders.
Fashion for Good is an Amsterdam-based innovation platform backed by brands and philanthropic investors, focused on accelerating the adoption of sustainable technologies across the fashion and apparel industry. It operates through funding programs, industry pilots and cross-brand working groups. On participates in Fashion for Good initiatives on microfiber research and circular design, alongside other member brands.
