Nike has released its 2014/2015 Sustainable Business Report, which shows significant progress toward the company's environmental and social targets while setting ambitious sustainability targets for the years to come.
Progress toward the 2015 goals include the reduction of carbon emissions during a period of continued growth for the company. Between 2011 and 2015 Nike shipped more than 1 billion units, with revenues increasing by 52 percent, while carbon emissions decreased by 18 percent per unit. Also, water efficiency was increased by 18 percent per unit in apparel materials dyeing and finishing and by 43 percent per unit in footwear manufacturing, exceeding the goal of 15 percent. Product sustainability was improved, with 98 percent of the new footwear scoring silver or better on the Nike Sustainable Manufacturing & Sourcing Index, 80 percent of new apparel scoring bronze or better, and a general increase in the use of environmentally-friendly preferred materials. Progress was also made with contract factories, as 86 percent of them showed an investment in workers and achieved a minimum bronze rating on the company's product sustainability indices, making progress toward the 100 percent goal by 2020. In 2015, footwear factories diverted 92 percent of their waste from landfill or incineration without energy recovery.
Looking ahead, Nike said its sustainability efforts will revolve around three core goals. First, it will focus on minimizing its environmental footprint by improving the product lifecycle and using more recycled materials. Second, it will work to transform manufacturing by using fewer, better factories that share its commitments. Nike is running pilot research programs to connect contract factories' workers to healthcare, education and finance networks, in order to improve the workers' quality of life inside and outside the workplace. Third, the company will invest to unleash the potential of its own human resources. This will be done, among other things, by recruiting talent who reflect the diversity of the consumers it serves and the communities where its employees live and work. Nike intends to accelerate these efforts by expanding the representation of women and people of color to start with, while increasing diversity of all dimensions across its business in the long term. The company is also expanding its paid Family Care program in the U.S., with parents now receiving an additional eight weeks paid leave. This benefit also applies to employees who need to care for family members.
Nike's goals for 2020, as described in the latest report, generally target 100 percent sustainability. The company wants to source 100 percent of products from contract factories meeting the company's definition of sustainable. Also, it expects to have no waste at all from contracted footwear manufacturing sent to landfill or incineration without energy recovery. As for product sustainability, the company seeks a 10 percent reduction by 2020 in the average environmental footprint, and an increased use of more sustainable materials overall.
By the end of 2025, Nike intends to reach 100 percent renewable energy in owned or operated facilities.
