NIKE, Inc. Sets Bold Vision and Targets for 2020
May 11 2016 - 9:18AM
Business Wire
Demonstrating Sustainable Innovation is a
Powerful Engine for Growth and a Catalyst for Change
NIKE, Inc. (NYSE:NKE) today released its FY14/15 Sustainable
Business Report, which details strong progress against the
company’s environmental and social targets and sets a vision for a
low-carbon, closed-loop future as part of the company’s growth
strategy.
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NIKE, Inc.'s FY14/15 Sustainable Business
Report details strong progress against the company’s environmental
and social targets and sets a vision for a low-carbon, closed-loop
future as part of the company’s growth strategy. (Photo: Business
Wire)
“At Nike, we believe it is not enough to adapt to what the
future may bring – we’re creating the future we want to see through
sustainable innovation,” said NIKE, Inc. President and CEO, Mark
Parker. “Today our teams are advancing ambitious new business
models and partnerships that can scale unprecedented change across
our business and the industry.”
The report highlights how Nike has embedded sustainability
across its business and signals Nike’s continued commitment to set
aggressive sustainability targets and invest in disruptive
innovation – all in service of driving company growth, delivering
performance innovation for athletes and acting as a catalyst for
change in the world.
“We’ve set a moonshot challenge to double our business with half
the impact. It’s a bold ambition that’s going to take much more
than incremental efficiency – it’s going to take innovation on a
scale we’ve never seen before. It’s a challenge we are setting for
ourselves, our collaborators and our partners as we move toward a
circular economy future,” said Hannah Jones, NIKE, Inc. Chief
Sustainability Officer and VP, Innovation Accelerator.
The company shared strong progress toward reported FY15
goals, including:
- Reduced carbon
emissions during a period of continued growth: Shipped more
than 1 billion units in FY15 and revenue increased 52% from FY11
through FY15, while carbon emissions decreased by 18% per
unit.
- Delivered
substantial water reductions: Increased water efficiency by
18% per unit in apparel materials dyeing and finishing and 43% per
unit in footwear manufacturing, exceeding the goal of 15%.
- Worked with
fewer, better contract factories: 86% of contract factories
demonstrated an investment in workers by achieving a minimum bronze
rating on the Nike Sustainable Manufacturing & Sourcing Index,
making progress toward 100% by FY20.
- Improved product
sustainability: Designed products that provide superior
performance with a lower environmental impact – 98% of new footwear
scored silver or better on our product sustainability indices, 80%
of new apparel scored bronze or better and the use of
environmentally preferred materials increased overall.
- Drove down
waste: In FY15, contract footwear factories diverted 92% of
footwear factory waste from landfill or incineration without energy
recovery.
As the next step on that journey Nike has set three strategic
aims: minimize its environmental footprint, transform its
manufacturing and unleash human potential.
Minimize Environmental Footprint
Nike aims to minimize its environmental footprint throughout the
product lifecycle, looking at carbon and energy, chemistry, water
and waste to identify strategies to use less, use better, innovate
new solutions and, where possible, close the loop and reuse. For
example, about 60% of the environmental impact in a pair of Nike
shoes is embedded in the materials used. Knowing materials matter
most, Nike is investing in creating a new palette of sustainable
materials in a move toward closed-loop products, and has already
incorporated recycled materials into 71% of its footwear and
apparel products, in everything from apparel trims to soccer kits
to Flyknit yarns.
Transform Manufacturing
Nike’s Manufacturing Revolution initiative is not only
transforming what products Nike makes, but also how it makes them
through technology, labor and sustainable innovation. In order to
deliver new product innovation to consumers Nike is focused on
creating technology-driven manufacturing, through more sustainable
factories that place highly skilled, engaged and valued workers at
the center. Nike is working with fewer, better contract factories
that are committed to taking this journey.
Nike is also running pilot research programs dedicated to
engaging and connecting workers to healthcare, education and
finance networks to make positive changes inside and outside the
workplace.
Unleash Human Potential
In addition to the commitments to workers through Manufacturing
Revolution, Nike is also looking to unleash the potential of its
own teams. Guided by the belief that diversity fosters creativity
and accelerates innovation, Nike is strengthening its recruitment,
promotion and retention of diverse talent throughout the world with
the goal of reflecting the diversity of the consumers it serves and
the communities where its employees live and work. Nike will
accelerate its efforts by expanding representation of women and
people of color to start, while continuing to increase diversity of
all dimensions across its business long term.
The company is also introducing a new Family Care benefit in the
U.S. that will support all new parents as well as employees caring
for sick family members. Now mothers and fathers will receive an
additional eight weeks paid time off and employees who need to care
for family members also receive eight weeks paid time off.
On the field of play, Nike is serving the next generation of
athletes by raising awareness of the physical inactivity epidemic
and working with others to get kids moving. For example, Nike’s
engagement with Let’s Move Active Schools in the U.S. has reached
more than 10 million kids since 2013.
FY20 Targets
To achieve these three aims, Nike set new targets for
FY20 spanning environmental impact areas and its entire supply
chain, including:
- To have zero
waste from contracted footwear manufacturing sent to
landfill or incineration without energy recovery.
- To source 100% of
products from contract factories meeting the company’s definition
of sustainable.
- To create products that deliver maximum performance with minimum
impact, seeking a 10% reduction in the average environmental
footprint and an increased use of more sustainable materials
overall.
- By the end of FY25, to reach 100% renewable energy in owned or operated
facilities and to encourage broader adoption of renewable energy as
part of an effort to control absolute emissions.
Nike believes these efforts – from materials innovation, to
transforming its manufacturing models, to visionary 2020 targets –
will deliver on Nike’s long-term strategy to leverage sustainable
innovation as a powerful engine for growth and catalyst for
change.
About Nike, Inc.
NIKE, Inc., based near Beaverton, Oregon, is the world's leading
designer, marketer and distributor of authentic athletic footwear,
apparel, equipment and accessories for a wide variety of sports and
fitness activities. Wholly owned NIKE, Inc. subsidiary brands
include Converse, which designs, distributes and licenses casual
sneakers, apparel and accessories; and Hurley, which designs and
distributes a line of action sports and youth lifestyle apparel and
accessories. For more information
visit http://news.nike.com/ and follow @Nike.
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NikeKate Meyers(503) 532-1402kate.meyers@nike.com
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