Climate Change Data

Environmental Metrics

ESG Focus Areas

• Working conditions in footwear, apparel, and equipment industries
• Innovative and sustainable products
• Sport as a tool for positive social change

Environmental Achievements

• Eliminated SF6 from most footwear, transitioning to nitrogen
• Reduced VOC use in footwear by 90%
• Increased use of organic cotton in apparel

Social Achievements

• Launched NikeGO program to promote youth physical activity
• Disclosed names and locations of all factories producing Nike-branded products
• Implemented a Balanced Scorecard to integrate CR compliance into purchasing decisions

Governance Achievements

• Established a Corporate Responsibility Business Leadership Team
• Established a Corporate Responsibility Board Committee
• Implemented a global employee survey on diversity and inclusion

Climate Goals & Targets

Environmental Challenges

• Improving working conditions in the supply chain
• Non-compliance issues (freedom of association, hours of work, wages, harassment)
• Environmental impacts across the product lifecycle
• Challenges in China (legal restrictions, information falsification)
• Impact of Multi-Fiber Arrangement (MFA) phase-out
• Extending CR activities to subsidiaries

Mitigation Strategies

• Disclosing the supply chain to encourage industry collaboration
• Implementing the M-Audit and SHAPE inspections
• Working with the Fair Labor Association (FLA)
• Developing a Balanced Scorecard to integrate CR into business decisions
• Investing in factory remediation and capacity building
• Participating in multi-stakeholder initiatives (Six Codes Initiative, GRI Sector Supplement, MFA Forum)
• Developing strategies for addressing the MFA phase-out
• Developing plans for extending CR programs to subsidiaries

Supply Chain Management

Supplier Audits: Over 1000 factories audited in FY04 (various methods)

Responsible Procurement

• Nike Code of Conduct
• New Source Approval Process (NSAP)
• Balanced Scorecard

Climate-Related Risks & Opportunities

Physical Risks

• Changing weather patterns affecting consumer buying, production, shipping, and insurance

Transition Risks

• Increasing costs of fossil fuels

Opportunities

• Energy efficiency measures reducing costs
• Transition to renewable energy sources
• Carbon trading

Reporting Standards

Frameworks Used: GRI Guidelines, UN Global Compact

Third-party Assurance: Report Review Committee (Ceres, AccountAbility, SustainAbility)

Sustainable Products & Innovation

• Nike Organics (100% organic cotton)
• Environmentally preferred rubber

Awards & Recognition

• 100% rating on Human Rights Campaign’s Corporate Equality Index (2002-2004)
• 2004 U.S. Western Region Employer of Choice (Minority Corporate Counsel Association)

Environmental Metrics

ESG Focus Areas

• Improving working conditions in contract factories
• Minimizing global environmental footprint
• Using the power of the brand to give excluded youth greater access to sport

Environmental Achievements

• Exceeded CO2 emissions reduction target through WWF's Climate Savers program
• Eliminated F-gases across all Nike products

Social Achievements

• Invested more than $100 million in product and cash donations over the past two years in community-based sport initiatives

Governance Achievements

• Redesigned corporate responsibility approach with deeper business integration and a more formalized governance structure

Climate Goals & Targets

Environmental Challenges

• Systemic issues affecting workers' rights in the supply chain
• Excessive overtime in contract factories
• Waste generation across the supply chain
• Climate change
• Youth unemployment and exclusion

Mitigation Strategies

• Implemented Generation III approach focusing on root cause identification and solutions
• Launched Excessive Overtime Taskforce
• Undertook waste mapping exercise to identify largest waste streams
• Joined WWF Climate Savers program and set CO2 reduction targets
• Aligned community investment portfolio with core business model and interests

Supply Chain Management

Supplier Audits: 810 M-audits in FY05-06

Responsible Procurement

• Code of Conduct
• New Source Approval Process
• Monitoring and remediation programs
• Lean manufacturing

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: GRI, UNGC, Ceres Principles

Sustainable Products & Innovation

• Considered product line
• Nike Grind
• Air Max 360

Awards & Recognition

• 2005 Industrial Designers Society of America Gold Industrial Design Excellence Award
• 2006 Cooper-Hewitt National Design Museum Corporate Achievement Award
• 2007 PR News Corporate Social Responsibility Award
• 2007 WWF Climate Savers Award
• Fortune Magazine's 100 Best Companies to Work For

Environmental Metrics

ESG Focus Areas

• Climate & Energy
• Labor
• Chemistry
• Water
• Waste
• Community

Environmental Achievements

• Reduced absolute greenhouse gas emissions by 2.8% while increasing revenues by 26% from FY11 to FY13.
• Reduced CO2 emissions per unit by 13% from FY11 levels by the end of FY13.
• Reduced water use in footwear manufacturing by 23% per pair compared with FY11.
• Reduced manufacturing waste in NIKE Brand footwear by 35% since 2005.
• Reduced CO2 emissions per unit in inbound transportation by 29% from FY11 to FY13.
• Flyknit technology reduced footwear waste in the upper by 80% compared with traditional production methods.

Social Achievements

• 68% of contract factories achieved a bronze or better rating on the Sourcing & Manufacturing Sustainability Index by the end of FY13.
• 93% of factories reported no incidents of excessive overtime in FY13.
• In FY13, violations were recorded in 16% of factories, a drop from 29% in FY12.
• Provided training to management at contract factories producing 91% of NIKE Brand footwear product and 44% of NIKE Brand apparel product by volume, covering 531,000 workers (61% of total workers in the supply chain).

Governance Achievements

• Established a Corporate Responsibility and Sustainability Committee in 2001.
• Updated the Committee's charter in 2013 to include sustainability and innovation.
• All NIKE, Inc. employees are required to verify that they have read and understand Inside the Lines, our employee Code of Ethics.

Climate Goals & Targets

Environmental Challenges

• Rising costs for energy, materials, and labor.
• Supply chain disruptions due to major weather events.
• Political unrest affecting markets and confidence in some areas.
• Difficulty in achieving zero discharge of hazardous chemicals by 2020.
• Challenges in reducing shoebox weight by 10% by FY15.

Mitigation Strategies

• Leveraging scale, operational capabilities, brand strength, and product innovation to mitigate risks.
• Industry collaboration through the ZDHC coalition.
• Development of the NIKE Materials Sustainability Index (NIKE MSI).
• Implementation of lean manufacturing.
• Development of innovative technologies like NIKE Flyknit and ColorDry.

Supply Chain Management

Supplier Audits: 94% of factories underwent a full assessment of labor, health, safety and environmental compliance in FY13.

Responsible Procurement

• NIKE Code of Conduct
• NIKE Materials Sustainability Index
• Sourcing & Manufacturing Sustainability Index

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products

Reporting Standards

Frameworks Used: GRI G3 (B level), UNGC

Certifications: LEED

Third-party Assurance: Not disclosed

Sustainable Products & Innovation

• NIKE Flyknit
• ColorDry

Awards & Recognition

• Dow Jones Sustainability Index
• FTSE4Good Index
• Climate Counts
• Corporate Responsibility Magazine’s 100 Best Corporate Citizens

Environmental Metrics

ESG Focus Areas

• Climate Change
• Waste Reduction
• Water Conservation
• Chemistry
• Labor Practices
• Community Impact
• Diversity & Inclusion

Environmental Achievements

• Reduced per-unit carbon emissions by 19% since 2008 while increasing revenue by 64%
• Nike Grind used in 71% of Nike footwear and apparel products
• Reduced energy use per unit in footwear manufacturing by 50% since 2008
• Achieved 92% diversion rate of total solid waste from landfill and incineration without energy recovery in footwear manufacturing in FY15

Social Achievements

• Percentage of NIKE employees who identify as non-white in the U.S. rose above 50% in FY15
• Launched a new Family Care benefit in the U.S. to support new parents and caregivers
• Increased employee giving through a new 2x sport match and volunteer rewards program, resulting in a 10% increase in donations and a 400% increase in volunteer hours in September and October 2015
• Ran several pilot research programs focused on improving worker engagement, compensation, and benefits in contract factories, resulting in significant improvements in productivity, quality, and worker well-being

Governance Achievements

• Established a Corporate Responsibility/Sustainability Performance & Disclosure Committee
• Embedded sustainability into business strategies through 2020 targets
• Increased transparency by disclosing factory locations and implementing the Sustainable Manufacturing and Sourcing Index (SMSI)

Climate Goals & Targets

Environmental Challenges

• Increased absolute emissions due to a spike in emissions from inbound logistics (FY15)
• Challenges in reducing emissions in inbound logistics due to airfreight use
• Challenges in achieving 100% compliance with sustainability targets across all products and factories
• Inconsistent approaches to chemicals management across the industry
• Excessive overtime in some contract factories

Mitigation Strategies

• Partnering with Washington State University to develop an energy-efficiency resource toolkit for dyeing and finishing facilities
• Working with contract factories to identify ways to reduce energy use and emissions
• Setting a target to reach 100% renewable energy in owned or operated facilities by the end of FY25
• Collaborating with industry associations (ZDHC, SAC) to develop and implement industry-wide standards for chemicals management
• Implementing pilot programs to address excessive overtime and improve worker engagement and compensation

Supply Chain Management

Supplier Audits: 654 audits conducted in FY15

Responsible Procurement

• NIKE Code of Conduct
• Sustainable Manufacturing and Sourcing Index (SMSI)
• Environmental Safety Assessment Tool (ESAT)

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Supply chain disruptions

Transition Risks

• Regulatory changes
• Market shifts

Opportunities

• Development of energy-efficient products
• Increased use of renewable energy

Reporting Standards

Frameworks Used: GRI

Sustainable Products & Innovation

• Nike Flyknit
• Products using recycled polyester and Nike Grind

Environmental Metrics

ESG Focus Areas

• People
• Planet
• Play

Environmental Achievements

• Reduced owned or operated facility GHG emissions by 43%
• Reached 78% renewable electricity in owned or operated facilities
• Reduced manufacturing and transportation GHG emissions by 22%
• Increased environmentally preferred materials to 32%
• Reduced freshwater usage per kg textile dyeing and finishing by 6%
• Restored 2.06 billion liters of water in extended cotton supply chain

Social Achievements

• Increased representation of women in global corporate workforce to 50.4% and in leadership positions to 43%
• Increased representation of U.S. racial and ethnic minorities at Director level and above to 30.3%
• Increased representation of U.S. racial and ethnic minorities in U.S. corporate workforce to 34.3%
• Invested $450,000 in HBCUs and HSIs
• Maintained 100% pay equity across all employee levels
• Reached top quartile in benchmarked companies for employee engagement (65th percentile) and inclusion (63rd percentile)
• Invested $36.6 million to support organizations working to level the playing field and address racial inequality
• Increased employee engagement in communities to 35%

Governance Achievements

• Connected executive compensation to progress against 2025 targets
• Leveraged annual milestones to improve performance management
• Extended accountability of targets deeper into the value chain

Climate Goals & Targets

Environmental Challenges

• Climate change impacts on supply chain
• Gender inequality in the workplace and supply chain
• Racial inequality in the workplace and communities
• Maintaining high engagement and inclusion during a pandemic and organizational change
• Achieving ambitious carbon reduction targets
• Reducing waste in manufacturing and distribution
• Achieving full compliance with ZDHC Wastewater Guidelines
• Addressing forced labor risks in supply chain
• Increasing use of environmentally preferred materials

Mitigation Strategies

• Developed Supplier Climate Action Program
• Developed Gender Equity Self-Diagnostic Tool
• Invested in HBCUs and HSIs, mentorship programs, and diversity initiatives
• Invested in employee well-being programs and initiatives
• Implemented energy efficiency measures and renewable energy solutions
• Implemented waste reduction programs and closed-loop recycling initiatives
• Provided training and support to suppliers on ZDHC Wastewater Guidelines
• Implemented responsible recruitment due diligence toolkit and other initiatives to address forced labor
• Focused on key materials with scalable low-impact alternatives

Supply Chain Management

Supplier Audits: 1164 audits in FY21

Responsible Procurement

• Code of Conduct
• Code Leadership Standards
• Supplier Sustainability Council
• Supplier Climate Action Program
• Gender Equity Self-Diagnostic Tool
• Culture of Safety Maturity Assessment

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather events
• Flooding
• Droughts

Transition Risks

• Regulatory changes
• Market shifts
• Increased cost of energy

Opportunities

• Development of energy-efficient products
• Renewable energy solutions
• Circular economy initiatives

Reporting Standards

Frameworks Used: GRI Standards, SASB

Certifications: LEED

Third-party Assurance: PricewaterhouseCoopers LLP

UN Sustainable Development Goals

• Goal 5: Gender equality
• Goal 8: Decent work and economic growth
• Goal 12: Responsible consumption and production
• Goal 13: Climate action

Initiatives contribute to these goals through various programs and targets

Sustainable Products & Innovation

• Flyleather
• Recycled materials
• Energy-efficient products

Awards & Recognition

• Gartner’s 2021 Power of the Professions Award for Social Impact

Environmental Metrics

ESG Focus Areas

• People
• Planet
• Play

Environmental Achievements

• 69% absolute reduction of greenhouse gas (GHG) emissions in owned and operated facilities
• 100% waste diverted from landfill in Tier 1 manufacturing
• 10% waste reduction per unit in manufacturing, distribution centers (DCs) and headquarters (HQs)

Social Achievements

• Achieved 41% representation of U.S. racial and ethnic minorities in our corporate workforce
• Maintained 51% representation of women in global corporate workforce
• Launched Body Confident Sport, a coaching tool to boost body confidence in girls

Governance Achievements

• Executive compensation linked to progress against 2025 targets
• Established anti-corruption training for all employees (implied through NIKE Fair Play)

Climate Goals & Targets

Environmental Challenges

• Supply chain disruptions (implied)
• Decoupling total emissions footprint from unit growth
• Transitioning textile dyeing suppliers to cleaner energy alternatives
• Aesthetic impacts of recycled materials on lifestyle and Jordan Brand products
• High costs for sustainable fuels
• Limited availability of sustainable aviation fuel (SAF)

Mitigation Strategies

• Developed alternative sourcing strategies (implied)
• Adoption of renewable energy by suppliers
• Transition to recycled materials
• Reduction in waste sent to landfill
• Decreases in inbound air freight
• Participating in collaborative procurement initiatives (e.g., Zero Emission Maritime Buyers Alliance)
• Investing in regional service centers and "no rush" shipping options
• Developing new formulations of regrind rubber for sub-$100 products
• Scaling sustainable fuels program through investments in alternative fuels and new vessels

Supply Chain Management

Supplier Audits: Number not specified, but using industry tools like SLCP, Higg FEM, and ZDHC

Responsible Procurement

• Code of Conduct
• Code Leadership Standards
• Supplier Climate Action Program (SCAP)
• Business Diversity and Inclusion (BDI) program

Climate-Related Risks & Opportunities

Physical Risks

• Extreme weather
• Flooding
• Droughts

Transition Risks

• Regulatory changes
• Market shifts
• Higher costs for sustainable fuels

Opportunities

• Development of energy-efficient products
• Growth of renewable energy markets

Reporting Standards

Frameworks Used: GRI Standards, SASB

Certifications: LEED

Third-party Assurance: PwC (limited assurance on select metrics)

UN Sustainable Development Goals

• Goal 7 (Affordable and Clean Energy)
• Goal 12 (Responsible Consumption and Production)
• Goal 13 (Climate Action)
• Goal 5 (Gender Equality)
• Goal 10 (Reduced Inequalities)

Initiatives contribute to these goals through various programs and targets

Sustainable Products & Innovation

• Nike Forward collection
• EasyOn footwear
• ReactX foam

Awards & Recognition

• National Equal Justice Award from NAACP Legal Defense Fund