Nike has released the 11th edition of its Impact Report. The document addresses and assesses the company’s 2020 (financial year ended in May, 2020) targets, which were set in 2015, and sets new corporate targets for 2025. Nike has been releasing Impact Reports for two decades and shifted to an annual cadence three years ago.
In 2020, the company launched its Supplier Climate Action Program, with the objective of developing pathways for carbon reduction for its material and finished goods manufacturers. In the area of water management, the company exceeded its FY2020 targets by achieving a 30 percent reduction in textile dyeing and finishing supplier freshwater use per kilogram of material. This progress translates into a cumulative 40 billion liters of freshwater avoided by its suppliers since 2016.
In terms of energy consumption, the company is currently using 100 percent renewable energy in the U.S. and Canada in its owned or operated facilities. Globally, Nike was powered by 48 percent renewable energy in FY20. Since FY15, Nike’s footwear suppliers have achieved a reduction of nearly 10 percent in energy consumption per pair produced. Meanwhile, in the area of waste management, 99.9 percent of Nike’s manufacturing scraps at its Tier 1 finished goods footwear suppliers were diverted from landfills last year.
Focusing on an inclusive team and corporate culture, women have risen to 49.5 percent of the company’s total employee base globally. Racial and ethnic minorities now account for 29 percent of Nike’s vice-president leadership team in the U.S., thanks to an 8 percent increase in 2020.
In 2020, as part of the Made to Play employee engagement program, and through the Nike Community Ambassador program, the company trained more than 6,700 retail athletes from over 560 stores across 29 countries to help children get moving through play and sport.
In addition to these and other achievements, the new FY20 NIKE, Inc. Impact Report also outlines 29 targets for 2025. Among other goals, Nike is aiming to a 50 percent representation of women in its global corporate workforce, and a 35 percent representation of racial and ethnic minorities in its U.S. corporate staff. In terms of environmental commitments, the company intends to reduce the greenhouse gas (GHG) emissions in owned or operated facilities by 70 percent by 2025. It also targets a 10 percent waste reduction per unit in manufacturing, distribution, headquarters, and packaging through improved design and operational efficiency, and to divert 100 percent of its waste from landfill, with at least 80 percent recycled back into Nike products and other goods. Finally, in the area of water management, the company aims for a 25 percent cut in freshwater usage per kg in textile dyeing and finishing by 2025.