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How sustainable is Nike ?

Nike & sustainability


Nike
Reasonable, could be better Click here for score rapport: 14 out of 36

Sustainability summary

Nike has achieved the C-label. Nike is on its way towards sustainability, but more improvement is needed.

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

What's your sustainability news about Nike?

Nike sustainability score report

Last edited: 10 November 2018 by Marca
Last reviewed: 9 November 2018 by Mario

Questions about Climate Change/ Carbon Emissions

2 out of 6
1. Is there a policy for the brand to minimize, reduce or compensate carbon emissions? Nike implements several measures to reduce greenhouse gas emissions, such as the use of renewable energy and energy efficiency measures (see link, pages 25-28). 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 increased its climate footprint (Scope 1+2) from 247,006 tCO2e in FY16 to 250,785 tCO2e in FY17, an increase of 2% (see link, page 28). Source
3. Is at least 50% of the electricity used by the brand (company) generated from renewable resources, such as wind or solar energy? 22% of the electricity used by Nike in FY17 was generated from renewable energy (see link, page 14). Source
4. Does 100% of the electricity that the brand (company) uses for its ‘own operations’ come from renewable resources, such as wind or solar energy? See remark for carbon emissions policy question 3. Source
5. 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 use 100% renewable energy by the end of FY25, which will be equivalent to reducing absolute Scope 1 and 2 carbon emissions by more than 50% from FY15 to FY25. However, its reduction target within the next 5 years is not specified clearly (see link, pages 15 and 25). Source
6. 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)? Nike reports on a reduction in greenhouse gas emissions which were caused in its production chain that is beyond own operations (see link, page 28). Source

Questions about Environmental Policy

5 out of 16
1. Does the brand (company) use environmentally 'preferred' raw materials for more than 5% of its volume? Nike uses sustainable materials: 29.6% for Apparel and 32.5% for Footwear: Nike uses 54.1% Cotton Sourced More Sustainably (see link, page 14). However, it is not known what % of volume Nike uses environmentally 'preferred' raw materials. 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) use environmentally 'preferred' raw materials for more than 50% of its volume? See remark for environmental policy question 1. Source
5. Does the brand (company) use environmentally 'preferred' raw materials for more than 75% of its volume? See remark for environmental policy question 1. Source
6. Does the brand (company) use environmentally 'preferred' raw materials for more than 90% of its volume? See remark for environmental policy question 1. Source
7. 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 has an "Amazon Biome Leather Sourcing Policy" which ensures Nike does not use leather produced from cattle raised in the Amazon Biome (see link, page 72-73). Source
8. 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 does not communicate clear enough on its policy – including results - to limit chromium and other harmful substances pollution caused by leather tanning processes. Source
9. 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 implements measures to limit the use of hazardous chemicals. However, according to Greenpeace, Nike, Inc is categorized as 'Faux-Pas' in doing so. Source
10. Has the brand (company) eliminated at least one suspect chemical group, such as Phthalates or Per fluorinated chemicals from its entire garment production? According to Greenpeace, Nike, Inc. has successfully eliminated 90% of the PFCs it uses. But, Nike, Inc. does not report whether at least one suspect chemical group, such as PFC or phthalates can be considered as fully eliminated from its entire production for Nike brand. Source
11. Has the brand (company) eliminated at least three suspect chemical groups, such as Phthalates or Per fluorinated chemicals from its entire garment production? See remark for environmental policy question 10. Source
12. 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%? Nike prohibits the use of PVC in all materials and products (see RSL document in link, page 63). Source
13. 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 reports about having a plan to reduce solvent based chemicals in their shoe production, and has achieved a level of average 12 grams of petroleum-derived solvents (PDSs) per pair of shoe (see link, page 48 for statement in their FY15 report: their FY17 report just says they use "96% less petroleum-derived solvents since 1995"). Source
14. Does the brand (company) have clear objectives to minimize the environmental impact of its shipping packaging and carrier bags, by reducing, re-using, recycling and responsible sourcing of packaging materials, and does the brand annually report on these results? Nike does not clearly communicate a consumer packaging reduction policy and results regarding its packaging materials footprint are not made public. Source
15. Does the brand (company) have clear objectives to minimize waste, by reducing, re-using and recycling, and does the brand annually report the results? Nike has a target to "eliminate footwear manufacturing waste to landfill or incineration, while continuing to reduce overall waste"; they report that waste to landfill reduced from 6.6% in FY16 to 4.0% in FY17; and they report that in FY17, more than one-half of NIKE footwear finished goods manufacturing waste was recycled (see link, page 29). Source
16. Does the brand (company) encourage the return or re-use of garments? In 1993, Nike introduced the “Reuse-A-Shoe” program where customers can return worn out shoes at Nike stores (see link at previous question, page 10). Nike then grinds the shoes down and turns them into new products (see link). Source

Questions about Labour Conditions/ Fair Trade

7 out of 14
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 the Nike Code of Conduct (see link, page 1). 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: there is a recognized employment relationship established through country law and practice. 2. No: max work week is 48 hrs and a max of 12 overtime, 'Other than in extraordinary circumstances', which is undefined. 3. Yes: employees have the right to compensation that is sufficient to meet basic needs plus some discretionary income (see link, pgs 2-3). 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? This right is mentioned, with reference to parallel means for the situation of law restrictions (see link, page 2). 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's CoC "lays out the minimum standards we expect each supplier factory or facility to meet", but does not make clear if it covers leather production or animal farms (see link, page 1). 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's webpage has an interactive map that displays the name and location of each factory and types of products produced. 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 is an affiliate of the Fair Labor Association (FLA). Nike's compliance program is accredited by 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? Civil society organizations (CSOs) affiliated with FLA help shape programs and policies that hold companies accountable and improve workers' lives. Source
8. Is there a policy for the brand (company) for capacity building at the apparel manufacturers for improved labour practices? Nike believes that wages can increase as overall factory operational efficiencies improve and conducts employee surveys to identify ways to make improvements in the workplace. However, concrete results, such as wages increased or working hours decreased, are not reported (see link, page 45). Source
9. Does the brand (company) annually report on the results of its labor conditions policy? Is at least 90% of the brands production volume from apparel manufacturers monitored for labour conditions? Nike publishes a detailed audit summary report with follow up actions (see link, starting at page 41). Source
10. Is at least 25% of the production volume from apparel manufacturers approved as socially compliant by independent third parties, such as FWF, GOTS or SA8000? Nike does not clearly report how much production volume is verified as socially compliant by independent third parties such as FLA (see link, starting at page 41). Source
11. Is at least 50% of the production volume from apparel manufacturers approved as socially compliant by independent third parties, such as FWF, GOTS or SA8000? See remark for labor conditions policy question 10. Source
12. Does the brand (company) implement a policy to establish the payment of living wages at its apparel manufacturers? Are at least first living wage payments realised? Nike does not provide concrete information whether living wage payments are realized at its apparel manufacturers. Source
13. Does the brand (company) annually report on the results of its labor conditions policy for the leather, yarn and fabric production phases, including a reasonable overview of the number and region of workplaces covered by the policy in relation to the total production volume? Nike, Inc. does not report on clear results of its labour conditions policy for the fabric manufacturing phases. Source
14. Are at least 50% of the brand's leather, yarn and fabric production phases approved as socially compliant by independent third parties, such as FLO-Cert, GOTS or SA8000? See remark for labor conditions policy question 13. Source