Performance and Disclosure Statement 4
Our Ambition 5
a Low-Carbon Growth Economy 6
the Innovation Imperative 7
the Future Will Be Circular 8
When to Compete and When
to Collaborate 10
Business Overview 12
Our Impacts 14
Our Aims 17
Minimize Environmental Footprint 21
Product Design and Materials 24
Carbon and Energy 32
Transform Manufacturing 50
Innovating the Role of the Worker 54
Innovating the Role of Technology 57
Transparency and Compliance 58
Unleash Human Potential 66
Our Workforce 68
Community Impact 73
Governance and Policy
Governance, Integration and
Strategic Partnerships 78
Public Policy 81
About This Report
Reporting at Nike 84
Stakeholder Engagement 87
Validity of Data 89
Additional Data 91
Additional Fy15 Targets Performance 102
Gri Index 104
The connection between the digital and physical worlds is closer than ever. The design process is faster and more personal. And the challenge of climate change demands everyone’s ingenuity.
At NIKE, we unite these forces through sustainable innovation – a powerful strategy that drives us to dream bigger and get better. But to achieve the impossible, we have to rethink the fundamentals.
Every day I challenge my team to do just that, guided by a single, moonshot question: “Can we double our business, while halving our environmental impact?”
Getting there means strengthening every aspect of our business. It means inventing closed-loop products; moving to 100% renewable energy; pioneering a manufacturing revolution that puts workers’ voices at the heart of the business model; and fostering a diverse workplace and an inclusive culture that unleashes innovation.
Incremental change won’t get us there fast enough.
We have embraced sustainable innovation as a powerful engine for growth and a catalyst for change – not only for our own business, but across industries.
That’s why we’re partnering with innovators who help us accelerate systemic change at scale. With Flex, we’re taking a fresh approach to footwear manufacturing.
With DreamWorks and their technology company NOVA, we’re building a 3D digital design system to transform our product creation process.
And with the Ellen MacArthur Foundation we’re exploring new business models that keep materials in play through reuse and regeneration.
These partnerships help us realize our own potential – because if we dare to design the future, we must do it together.
The NIKE, Inc. FY14/15 Sustainable Business Report, which details NIKE’s progress in multiple areas, shows where we exceeded expectations, and where we came up short.
There is much to be proud of.
We’ve worked for over 15 years to understand, track and decrease carbon across our value chain.
Since 2008, our revenues have increased by 64% and we’ve limited our absolute emissions to only 20% growth across product manufacturing, logistics and our owned facilities. This represents a decrease of our per-unit carbon emissions by 19%.
We continue to work with fewer and better factories that are committed to moving beyond compliance.
We’re investing in green, equitable and empowered workplaces – even as our business grows. And we’re sharing the lessons we’ve learned across the industry, so everyone can work together to advance change.
We have continued our focus on decreasing waste dramatically. Today, Nike Grind – a palette of premium recycled materials – is used in 71% of NIKE footwear and apparel products, in everything from yarns and trims, to soccer kits and basketball shoes.
This work is challenging and we don’t have all of the answers. But, it starts with focusing on where we can drive change.
From an impact standpoint, materials matter the most. In fact, in one pair of NIKE shoes, 60% of the environmental impact comes from materials.
One of the keys to our success will be to develop a new palette of sustainable materials. To do that, we’re innovating with others, such as the Sustainable Apparel Coalition and LAUNCH – a partnership with NASA, the U.S. Agency for International Development and the U.S. Department of State.
By creating low-impact and regenerative materials, we can continue to move toward a high-performance, closed- loop model that uses reclaimed materials from the start.
Coupled with smarter designs, we can create products that maximize performance, lighten our environmental impact and can be disassembled and easily reused.
We plan to take the next step in our closed-loop vision with a bold target for FY2020: zero waste from contract footwear manufacturing going to landfill or incineration without energy recovery.
But that’s just the start. We know that the transition to a low-carbon growth economy will be driven by a mix of business innovation, industry collaboration and government policies.
That’s why we are reducing carbon emissions through increased efficiency and renewable energy. To support smart policies, we signed onto the American Business Act on Climate Pledge and co-founded We Mean Business – representing the voice of businesses at the global climate negotiations.
Over time, an impressive story has unfolded: as we reduce our carbon footprint, we continue to drive amazing growth.
Looking ahead, we’re setting a target to reach 100% renewable energy in owned or operated facilities by the end of FY25.
Over the past 10 years, NIKE has provided multiple open-source sustainable innovation tools to our industry and the public.
In 2012, we shared our Materials Sustainability Index (MSI) to the Sustainable Apparel Coalition, where the data has fueled development of their Higg Index.
We also used the MSI to launch our MAKING app. It has enabled the industry to measure the sustainability performance of materials and products in a consistent way for the first time, and helped designers – both inside and outside of NIKE – to make informed decisions about the materials they choose.
We have shared our restricted substance list to help create an industry-wide manufacturing restricted substances list (MRSL) and shared a water-based solvent formula to enable the industry to eliminate the use of toxic chemicals in a key footwear process.
We were also the first brand to disclose our factory locations on our Manufacturing Map, in an effort to accelerate collaboration on labor rights in the supply chain.
In 2010, NIKE put 400 of our utility patents under a Creative Commons license to enable others to leverage them for sustainable innovation in multiple industries.
We are founding members of LAUNCH, an open innovation platform designed to uncover breakthrough ideas in sustainable innovation, developed through a strategic partnership with NASA, the U.S. Agency for International Development and the U.S. Department of State.