DATA

THE PROS:

The brand has a Materials Sustainability Index (MSI) which gives its designers product information on  57,000 different materials, supplied by 741 vendors. Nike used its MSI to launch the MAKING app which enables the sustainability performance of materials and products to be measured in a consistent way, helping designers – both inside and outside of Nike – to make informed decisions about the materials they choose.

In 2015 approximately 20 of the brand’s contract factories in both finished goods manufacturing and materials dyeing and finishing used 500,000 MWh of renewable energy. Nike has committed to working with contract factories to scale renewable energy use. The brand aims to reach 100% renewable energy in owned or operated facilities by the end of 2025.

In 2015, 27,000 tonnes of Nike factory scraps were recycled into materials and used in Nike footwear and apparel.

As part of Nike’s ReUse a Shoe initiative, consumers can return their footwear at end of life and they will be recycled into running tracks.

THE CONS:

In 2015, Nike shipped more than 1 billion units through its supply chain.

It is unclear if the brand can trace its entire supply chain.

In July 2016, Greenpeace Detox Catwalk Report gave Nike a ‘Faux Pas’ rating, stating that the brand was failing to take individual responsibility for its supply chain´s hazardous chemical pollution. The report failed Nike on all 3 areas assessed and noted that the brand does not require its suppliers to report their hazardous chemical discharge data, and has not eliminated PFC’s completely from its supply chain.

/ Nike Inc. includes the brands Nike, Hurley, Converse and Jordan.

/ In 2016, the Nike brand had a total revenue of $30.5 billion, up 13%.

/ As of May 31, 2016, the Nike brand had 890 stores in operation, Converse had 126, and Hurley had 29.

/ As of July 2016, Nike products were manufactured in 42 countries, by 1,066,041 million contract workers, in 663 factories.

/ In 2015, Nike used 692 contract factories, down from 785 in 2013.

/ In 2015 Nike shipped more than 1 billion units through its supply chain.

/ Nike has published a bi-annual sustainability report since 2001.

/ Nike shares the names and locations of its independant contract factories on a manufacturing map on its website, including types of product made and information about the gender composition, average age and percentage of migrants working in the factory.

/ The brand breaks down how it measures each product group’s environmental impact in its sustainability report.

/ Fashion Revolution’s 2016 Fashion Transparency Index gave Nike a 57% rating, commending the brand on publishing quantifiable targets towards improving standards and performance across the supply chain over time. However, Fashion Revolution noted that they do not appear to communicate any specific targets on transparency.

/ It is unclear if the brand can trace its entire supply chain.

/ At the end of 2015, 589 (86%) of the brand’s contract factories were rated bronze or better (factories that exceed baseline requirements in health, safety and environmental management, and labor best practices). 4 of the brand’s factories were rated silver.

/ The brand has partnered with the International Finance Corporation (IFC) and established a pilot project where certain Nike contract factories will be able to leverage tools available in the financial markets to obtain short-term financing with a progressively lower cost of capital tied to a higher sustainability rating, as assessed by Nike’s Sustainable Manufacturing and Sourcing Index.

/ At Indonesian factories a digital grievance mechanism was piloted, data shared anonymously with management and progress communicated back to workers. The results showed:

  • 69% of users reported an increase in specific knowledge
  • After one year, contract factories reported a 33% decrease in turnover
  • Workers at one factory reported a 25% improvement in the quality of the worker– management relationship over the course of the pilot
  • Turnover among users at one apparel factory was 4% lower than among non-users
  • Workers began to practice preventative self-care for health and home issues using knowledge and coaching from the service
  • When measuring reductions in turnover and unplanned absenteeism, the wellness programs had a $4 return for every $1 spent

/ In 2015, 654 audits were conducted on Nike contract finished goods factories; of this Nike undertook 615, Fair Labor Association conducted 14 and Better Work conducted 25. Excessive hours was the top issue found, followed by wages. In 2015, Nike reported 96% of contract factories had no incidents of excessive overtime violations, as defined in Nike’s Code of Conduct.

/ In May 2016, in a report by BASIC (Bureau for the Appraisal of Social Impacts and Costs) for Collectif Ethique Sur L’etiquette the relationship between the sportswear brand’s business model and working conditions in their supply chains was explored. The report outlined that Nike was one of three big brands that claimed they were dedicated to implementing a living wage but were resolutely orienting themselves toward countries where workers don’t earn enough to cover their families’ basic needs and decreasing sourcing from countries where the average worker wage is closer to a living wage.

/ Nike designers have access to more than 29 high-performance materials made from its manufacturing waste. The range of recycled materials – Nike Grind – is used in 71% of Nike footwear and apparel products.

/ In 2015, of Nike’s total cotton use, 10% was organic, down slightly from 11% in 2011. 39% of the brand’s garments contained polyester with recycled content, and 17% of the polyester Nike purchased in 2015 for apparel was recycled.

/ In 2015 approximately 20 contract factories in both finished goods manufacturing and materials dyeing and finishing used 500,000 MWh of renewable energy. Nike has committed to working with contract factories to scale renewable energy use. Nike’s greenhouse gas emissions, excluding biogenic carbon, for 2015 were 14 million metric tonnes. Nike’s total energy use from renewable and nonrenewable sources for 2015 was 143 million gigajoules. The brand aims to reach 100% renewable energy in owned or operated facilities by the end of 2025.

/ Nike’s 2020 environmental targets include a 20% reduction in freshwater use in textile dyeing and finishing per kg of material from key suppliers. This will be measured through supplier water risk mitigation plans with key materials processors and factories. Nike’s total use of freshwater resources across its value chain for 2015 was 163 billion gallons.

/ In July 2016, Greenpeace Detox Catwalk Report gave Nike a ‘Faux Pas’ rating, stating that the brand was failing to take individual responsibility for its supply chain´s hazardous chemical pollution. The report failed Nike on all 3 areas assessed and noted that the brand does not require its suppliers to report their hazardous chemical discharge data, and has not eliminated PFC’s completely from its supply chain.

/ Nike has a range of goals it wants to achieve by 2020 including:

  • Zero discharge of hazardous chemicals (ZDHC) by ensuring 100% compliance with Nike’s restricted substance list (RSL) and 100% compliance with the ZDHC manufacturing restricted substances list (MRSL).
  • Eliminate excessive overtime at manufacturing facilities
  • Source 100% of its cotton more sustainably (certified organic, BCI)
  • Reach 100% renewable energy in owned or operated facilities by the end of 2025
  • A 20% reduction in freshwater use in textile dyeing and finishing (l/kg) per unit of production
  • Source 100% from factories that meet its definition of sustainable (exceed the brand’s bronze baseline requirements in health, safety and environmental management, show a commitment to lean manufacturing and labor best practices)

 

/ Nike invests a minimum of 1.5% of its pre-tax income annually in community impact programs focused on getting kids active. In 2015 the brand invested 1.9%.

/ In 2015, Nike employees, as part of its global Community Ambassador Program, volunteered nearly 48,000 hours to the schools and charitable causes of their choice. $6.2 million in donations were also given, made up of employee contributions and Nike matching funds. For every hour an employee volunteers, Nike donates $10 to the cause of their choice, up to $1,000 per calendar year.

/ In 2014, Nike launched Designed to Move in China, building on its program running in Brazil, to bring football training and capacity building to physical education teachers. In China, the program has reached 2,925 physical education teachers in more than 1,000 schools.

/ The Nike Foundation, in partnership with NoVo Foundation, United Nations Foundation and multiple partners, works with girls in the developing world to help them develop solutions to poverty, with the ambition of reaching 250 million girls globally. Girl Effect was successfully launched as its own independent organization in 2015, with continued support from the Nike Foundation and multiple partners.

/ The Nike Community Impact Fund (NCIF) is administered by a committee of employee volunteers to local programs that promote sports and physical activity for youth and address pressing community needs. In 2016, Nike employees will award nearly $800,000 in grants to nonprofit organizations and schools across communities in the U.S.

/ In July 2016, Sourcing Journal Online reported that CEO Mark Parker’s base salary of $1.55 million remained the same in the year ended May 31, 2016 but his total pay packet for the year amounted to $47.6 million, up from $16.8 million in fiscal 2015, and mostly due to stock awards.

/ Nike is a publicly owned company.

/ In February 2016 The Guardian reported that following homophobic slurs from boxer Manny Pacquiao, Nike had terminated its contract with the athlete.

/ In February 2016 The Guardian reported that video directors from Australia and the UK have accused Nike of “shamelessly” plagiarizing their works in Nike’s new ad.

/ In July 2016, Fortune reported that in a letter to his 32,000 employees Nike Chairman and CEO Mark Parker spoke directly to the recent, troubling issues of race, violence and policing. He indicated that a series of meetings in key Nike offices were being planned for the future, to hold listening and dialog sessions.

/ Nike launched its ColourDry technology in 2012, a process that dyes fabric without water. In 2015 the brand produced 600,000 yards of fabric using its colordry process, saving 20 million litres of water.

/ In 2015, 27,000 tonnes of Nike factory scraps were recycled into materials and used in Nike footwear and apparel.

/ Nike Flyknit recycled polyester used in its Flyknit shoes reduces waste by about 60% on average compared to cut and sew footwear – nearly 1,000 tonnes since 2012.

/ The brand has a Materials Sustainability Index which gives its designers product information on 57,000 different materials, supplied by 741 vendors. The brand used its Manufacturing Sustainability Index to launch the MAKING app which enables the sustainability performance of materials and products to be measured in a consistent way, helping designers – both inside and outside of Nike – to make informed decisions about the materials they choose.

/ In 2015 Nike helped establish the We Mean Business Coalition, consisting of business climate groups around the world urging policymakers to adopt an ambitious climate agreement at COP21 in Paris. In the lead-up to COP21, Nike signed on to the White House American Business Act on Climate Pledge.

VOICES

GreenpeaceGREENPEACE DETOX CAMPAIGN 2015

The company is unwilling to embrace a transparency revolution across its global supply chain and still has not given a clear timeline to eliminate all PFCs in all its products. What does Nike have to hide?” – 2015


Basic

BASIC + COLLECTIF ETHIQUE SUR L’ETIQUETTE

The same factors that have allowed Nike to grow at an impressive rate by taking advantage of bargain sourcing in Asia – and investing those savings in innovation and marketing – have also led to major problems in terms of social impact.” – May 2016

 


GuardianROB HARRISON |THE GUARDIAN

For a company which 20 years ago was denying that workers’ rights at supplier factories were any of its concern, Nike has come a long way.” – 07/06/2012

NIKE | AS IN TRIPLE PUNDIT

We are making progress in assessing and understanding our overall water footprint, which helps us identify opportunities for conservation across our value chain. Though we have targeted water efficiency improvements for manufacturing and materials processing, we recognize that efficiency is not the only relevant measure.” – 06/19/2015

 

HANNAH JONES, CHIEF SUSTAINABILITY OFFICER | AS QUOTED IN ECOUTERRE

For more than a decade, we’ve worked hard to understand where our greatest impacts lie. We know materials make up about 60 percent of the environmental impact in a pair of Nike shoes. This knowledge has focused us on the need to bring new low-impact performance materials to scale through innovative solutions.” – 09/28/2015

 

MARK PARKER, CEO | NIKE SUSTAINABLE BUSINESS REPORT, FY 14/15

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?” – 2014/15