Nike scores 8 out of 16 at Rank a Brand: Compare how transparent, green and fair your favorite brands are

Nike Info

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8 out of 16
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Brand Owner: NIKE, Inc.
Head Office: Beaverton, Oregon USA
Sector: Fashion, Clothing & Shoes
Categories: Sportswear, Footwear
Free Tags: Multi-Sports

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Last Updated: 28 September 2011
Last Verified: 28 September 2011

Nike Score Report

Questions about Climate Change/ Carbon Emissions

2 out of 4


1. Is there a policy for the brand (company) to minimize, reduce or compensate carbon emissions?	Nike reduced own operations CO2 emissions by 18 percent between 1998 and 2005, and together with a few other brands has formed the BICEP (Business for Innovative Climate and Energy Policy ) and laid out plans for further reductions of carbon emissions in the next years.	SOURCE
2. Has the brand (company) disclosed the annual carbon footprint of its 'own operations' and has the brand already reduced or compensated 10% of these emissions in the last 5 years?	Nike has published a report on its footprint, but the data show that between 2006 and 2008 figures have been steadily rising. Only in 2009 there was a slight decrease in carbon emissions, but not as significant as 10 %.	SOURCE
3. Has the brand (company) set a target to reduce the carbon footprint of its 'own operations' by at least 20% within the next 5 years?	Nike has set a goal to deliver 30 percent absolute reduction in CO2 emissions from 2003 by 2020.Current figures show that emissions rose by 14 % during 2009 (although it has to be acknowledged that business increased by 70 % between 2003 and 2009)(see page 29 and 109 of CR report).	SOURCE
4. Does the brand (company) also have a policy to reduce/compensate carbon emissions generated from the product supply chain that is beyond own operations?	Nike has set up an energy efficiency program in their footwear manufacturing with a result of 6% CO2 footprint decrease in 2008. (page 110 - 115 )	SOURCE

Questions about Environmental Policy

1 out of 4


1. Does the brand (company) use environmentally 'preferred' raw materials for more than 5% of its volume?	In 2009, 86 % of Nike's cotton-apparel contained at least 5 % organic cotton and the goal for 2011 is to apply this percentage to all cotton-containing apparel. 2.74 % of the polyester garments contains recycled polyester. However, the exact % white leather and environmentally preferred rubber used in production is not clear (see pages 92 to 94 of CR report).	SOURCE
2. Does the brand (company) use environmentally 'preferred' raw materials for more than 10% of its volume?	See remark for environmental policy question 1.	SOURCE
3. Does the brand (company) use environmentally 'preferred' raw materials for more than 25% of its volume?	See remark for environmental policy question 1.	SOURCE
4. Does the brand (company) have an environmental policy related to the ‘wet processes’ within the production cycle, like bleaching and dying of fabrics?	Yes, Nike has an environmental policy related to water use (see pages 121-123) and chemicals (see pages 100-101).	SOURCE

Questions about Labour Conditions/ Fair Trade

5 out of 8


1. Does the brand (company) have a supplier Code of Conduct (CoC) which includes the following standards: No forced or slave labour, no child labour, no discrimination of any kind and a safe and hygienic workplace?	All standards are mentioned in Nike Code of Conduct.	SOURCE
2. Does this CoC include at least two of the following workers rights: 1. to have a formally registered employment relationship 2. to have a maximum working week of 48 hours with voluntary paid overtime of 12 hours maximum 3. to have a sufficient living wage?	1. Yes, Nike says that work is performed on the basis of a recognized employment relationship established through country law and practice. 2.No, maximum working week is 60 hours, but hours of overtime is not specified and overtime may be mandatory. 3. No, mentioning of minimum and industry wage, not living wage.	SOURCE
3. Does this Code of Conduct include the right for workers to form and join trade unions and bargain collectively; and in those situations where these rights are restricted under law, the right to facilitate parallel means of independent and free association and bargaining?	Nike's Code of Conduct only includes the right to form and join trade unions and bargain collectively when this is allowed by law.	SOURCE
4. Does the brand (company) have a published list of direct suppliers, that have collectively contributed to more than 90% of the purchase volume?	This list covers all active suppliers (see link).	SOURCE
5. Is the brand (company) a member of a collective initiative that aims to improve labour conditions, or does the brand (company) purchase its supplies from accredited factories with improved labour conditions?	Nike cooperates with various organizations like the Fair Labor Association (FLA) (see page 36).	SOURCE
6. Do independent civil society organizations like NGO's and labour unions have a decisive voice in this collective initiative or in these certification schemes?	Nike is a member of FLA, which means that Labour Unions and/or business-independent NGO’s have a formal and co-decisive voice within the initiative and are co-responsible for its integrity and credibility.	SOURCE
7. Does the brand (company) annually report on the results of its labour conditions policy?	Nike includes information on auditing in its CSR report (pages 43-47), and there are detailed per factory audit reports available on the FLA website (see link). However, the specifics of the auditing processes used are not discussed in the CSR report in detail, nor is it clear what percentage of the total workplaces are audited by the FLA.	SOURCE
8. Has the brand's labour conditions policy resulted in a 'compliance level' of at least 30% of the purchase volume, or a 'monitored level' of at least 80%?	Although the total percentage of workplaces audited by FLA is not clear, according to the Fair Labor Organisation website Nike is in compliance with the FLA code.	SOURCE