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How sustainable is Nike ?

Nike & sustainability


Nike

13 out of 21

Sustainability summary

Based on our sustainability criteria, Nike has achieved the B-label. This means that the brand scores quite well compared to other brands in the shoe sector. Nike has taken several policies to reduce the CO2 emission in the supply chain. Nike also works closely with the Fair Labor Association to improve the labor conditions. The company can still improve its climate change policy, by for example publishing the figures on the use of sustainable cotton.

Brand owner: NIKE, Inc.
Head office: Beaverton, Oregon USA
Sector: Sport & outdoor - clothing & shoes
Categories : Male, Female, Kids, Baby
Free Tags: Nike, Bags, Caps, Shirts, Pullover, Jackets, Dress, Shoes, Boots

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Nike sustainability score report

Last edited: 6 May 2013 by Mario
Last reviewed: 6 May 2013 by Mario

Questions about Climate Change/ Carbon Emissions

2 out of 4
1. Is there a policy for the brand to minimize, reduce or compensate carbon emissions? Nike has taken several policy measures to reduce carbon emissions, such as aiming to design all new buildings to LEED standards. Also Nike aims to 'achieve 20% reduction in CO2 emissions per unit from FY11 levels through FY15' (See link / 'Targets & Performance'). Source
2. Has the brand (company) disclosed the annual absolute carbon footprint of its 'own operations' (Scope 1 & 2) and has the brand already reduced or compensated 10% of these emissions in the last 5 years? Nike has reduced its carbon footprint (which includes all 3 Scopes) from 1.687.900 metric tons of CO2 in 2009 to 1.640.700 metric tons of CO2 in 2011, which represents a reduction of only 2.8% (See link / 'Progress and Performance'). Source
3. Has the brand (company) set a target to reduce its absolute ‘own operations’ carbon emissions by at least 20% within the next 5 years? Nike aims to achieve a 20% reduction in CO2 emissions per unit by 2015. However this only accounts for footwear. Nike does not publish its goals for its overal CO2 reduction (See 'Looking Ahead'). 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 (Scope 3)? In 2008 Nike launched 'the Nike Energy and Carbon program' with contract footwear manufacturers to help reduce these emissions. In 2010 Nike expanded this program to include apparel and equipment manufacturing (See link / 'Contract Manufacturers'). Source

Questions about Environmental Policy

5 out of 8
1. Does the brand (company) have a policy to substitute raw materials such as leather and synthetic rubber with environmentally friendlier materials? Nike has signed the Better Cotton's Inititative 'Fast Track Program' with the commitment to source 100% sustainable cotton by the end of 2020. Nike uses environmentally preferred materials such as organic cotton, recycled polyester and new rubber formulations with lower toxic chemical (See link / The materials we use). Source
2. Does the brand (company) use these environmentally friendlier alternatives for raw materials such as leather and synthetic rubber for more than 25% of the total use of materials? Nike mentions environmentally 'preferred' alternatives, but does not give clear percentages on the total use of materials used. Source
3. Does the brand (company) use these environmentally friendlier alternatives for raw materials such as leather and synthetic rubber for more than 50% of the total use of materials? See remark for environmental policy question 2. Source
4. Does the brand have a clear and effective policy to avoid the use of leather that originates from cattle farms in deforestated Amazone areas? Nike mentions that in 2009 established an Amazon leather policy, in which it commits not to use leather produced from cattle raised in the Amazon and requires its Brazilian leather suppliers to certify in writing that the leather they supply for Nike products complies with this policy. However, there is no report or outcome of this policy. Source
5. Does the brand (company) have a clear and effective policy to minimize environmental pollution of chromium and other harmful substances from leather tanning processes, e.g. by waste water treatment or by vegetable tanning? Nike mentions that chromium IV and other 8 chemicals are currently restricted in all its products. But, no information are found about the prohibition of chromium III. However, all active Nike Brand leather supplier facilities achieved a Leather Working Group (LWG) certification in 2011. Source
6. Is there a policy for the brand (company) to eliminate all hazardous chemicals from the whole lifecycle and all production procedures to make the clothing and footwear? Nike has signed the Zero-Discharge Commitment. Companies that signed this document promise to "eliminate all hazardous chemicals from the whole lifecycle and all production procedures that are associated with the making and using of company's products, by 2020". Source
7. Does the brand (company) have a clear target to phase out PVC in their products, and has the brand already achieved a PVC phase out level of more than 90%? According to its Restricted Substances List, Nike has banned the PVC out of its products and materials and it is allowed to be used in apparel screen prints only (See link, page 12). Source
8. Has the brand (company) a clear and effective policy to minimize the use of solvents based chemicals in their shoe production, and has the brand already achieved a level of average max. 40 grams of Volatile Organic Compounds (VOC) emissions per pair of shoes? Nike states it has replaced solvent-based chemistry in all NIKE Brand footwear with water-based chemistry, which has reduced the use of petroleum-derived solvents by 96 percent per pair since 1995. According to Nike's FY05-06 CR Report the level was 340 gr VOC per pair, in 2006 the level was 15 gr/ pair, in 2011 the level must be around 14 gr VOC per pair. Source

Questions about Labour Conditions/ Fair Trade

6 out of 9
1. Does the brand (company) have a supplier Code of Conduct (CoC) which includes the following standards: No forced or slave labor, no child labor, no discrimination of any kind and a safe and hygienic workplace? All standards are mentioned in Nike Code of Conduct (click '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 and 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 (click 'Nike Code of Conduct'). 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, but nothing found about situations in which this right is restricted by law (See link / 'Nike Code of Conduct'). Source
4. Does this labour conditions policy also apply further down the production chains, at least covering the leather production or the animal farms? Nike mentions that this labour conditions policy applies further down the supply chain, but does not make clear if it covers also the leather production or the animal farms (See link, click 'Nike Code of Conduct'). Source
5. Does the brand (company) have a published list of direct suppliers, that have collectively contributed to more than 90% of the purchase volume? Nike publishes an interactive map covering all active suppliers (see link). Source
6. Is the brand (company) a member of a collective initiative that aims to improve labor conditions, or does the brand (company) purchase its supplies from accredited factories with improved labor conditions? Nike cooperates with various organizations like the Fair Labor Association (FLA). Source
7. Do independent civil society organizations like NGO's and labor 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
8. Does the brand (company) annually report on the results of its labor conditions policy? According to the Fair Labor Organisation website Nike is in compliance with the FLA code. FLA publishes detailed per factory audit reports available on the FLA website. Source
9. Has the brand’s labor conditions policy resulted in a ‘compliance level’ of at least 30% of the purchase volume, or a ‘monitored level' of at least 80%? Nike's compliance program is accredited by FLA. Source