Nike has released its Impact Report for the fiscal year ended on May 31, 2018. The report focuses on the company's 2020 targets and priorities across its value chain and for its stakeholders. Last year, among its priority issues, the company identified “Diversity and Equal Opportunity” and “Climate Change Risks” as key issues, with a strong increase in relevance for both internal and external stakeholders.
The number of women in the company at vice-president level increased by 4 percent in the last fiscal year, bringing the total to 36 percent. The number of vice-presidents from under-represented groups in the U.S. rose by 3 percent, bringing the total to 19 percent. The pay ratio for men to women globally and white to under-represented groups in the U.S. was 1:1, according to the report.
To minimize the company's environmental footprint, the use of recycled polyester in Nike apparel increased by 13 percent in fiscal year 2018 as compared to the previous fiscal year. Polyester is the number one material used in Nike products by volume, and represents about 32 percent of the company's overall carbon footprint. Leather, which is featured across many Nike footwear styles, has the second-highest environmental impact on the company's carbon emissions. Last year, Nike introduced Flyleather, a new material made with at least 50 percent leather fiber. During a typical leather manufacturing process, up to 15 percent of a cow's hide falls to the tannery floor, eventually going to landfill. To create Flyleather, Nike fuses those leather fibers with synthetic ones into one material, which is said to be lighter and more durable than traditional leather.
During fiscal year 2018, Nike opened a new reverse logistics distribution center in North America, which received U.S. Green Building Council LEED (Leadership in Energy and Environmental Design) Gold certification for commercial interiors. Also in last fiscal year, Nike began pursuing options to procure renewable energy for all of its European operations.
In the area of community engagement, Nike's Made to Play community programs, which provide opportunities for young people to access sport and play, reached 16.5 million children worldwide.
The letter of Mark Parker, Nike's chairman and chief executive, commenting on the latest Impact Report as well as a link to the report itself in its entirety are available at https://news.nike.com/news/nike-impact-report-ceo-letter
Meanwhile, Nike got more flak on its policy toward women from an article in The New York Times last month reporting that the brand reduced or terminated payments to some sponsored female athletes during pregnancy because they didn't compete for six months. Nike responded by admitting that its female athletes got “performance-related reductions” related to pregnancy in the past, but then changed its policy in 2018, standardizing its approach across all sports to eliminate inconsistencies. The company said it has added language in its endorsement contracts that it will continue to pay female athletes during pregnancy.
