Summary: Rated as the world’s most favorite brand, Nike is making all the right moves toward sustainability. How is Nike's sustainability program faring in the face of a multitude of allegations? We take a brief look at it.
Nike’s Sustainability Initiatives
In November 2022, the world's human population reached 8 billion. The highest ever the planet has witnessed since the big bang. The burgeoning population comes with its own set of issues, increased consumption of natural resources, and higher levels of pollution and greenhouse emissions. Sustainability now holds more value than ever. In an ever-changing world, it is becoming an increasingly important issue for individuals, businesses, and governments.
That said, the world cannot have enough of Nike. It’s been around for 57 years and is still the world’s most valuable brand according to the 2022 release by Kantar. Nike is no stranger to being dragged into controversies. The company has been the subject of criticism regarding its labor practices and environmental impact. Nevertheless, Nike's sustainability initiative has begun, and it is taking mindful, science-based steps to become net zero in the near future.
Move To Zero
Nike’s move to zero campaign is taking a stand against climate change through bold, science-based targets. It is a clarion call for everyone in the organization.
The initiative has several key components that focus on different areas of the company’s operation.We are listing some of them in this article.
Carbon Emissions
Nike states that its climate impact is similar to a global city. The acceptance of this fact has made the company take a stock of its emissions. Its emissions were 11,706,664 metric tons of CO2e in FY20. If Nike were a city, it would have roughly the population and carbon footprint of Amsterdam, the Netherlands.
On the flip side, the production of footwear and apparel has a significant environmental impact due to the use of resources and the release of pollutants during the manufacturing process. Nike has been criticized for not doing enough to reduce its environmental footprint and for not being transparent about the environmental impact of its products.
Nike has stated that 78% of its products (Nike, Jordan, and Converse) contain some amount of recycled material. It is aiming to increase the percentage of recyclable materials in its upcoming products. Material consumption accounts for about 70% of the company’s carbon footprint.
Low-impact Materials
A majority of Nike’s products are made from polyester. Polyester fiber is derived from petroleum - notorious for pollution. Recycled polyester is a low-impact polyester derived from ocean plastic and plastic bottles. The high-quality yarn derived from them helps in reducing carbon emissions by 30% compared to virgin polyester.
Nike has also committed to using 100% sustainable cotton, leather alternatives, and other such low-impact materials by 2025. Considering the size of Nike, the introduction of small changes like recycled materials can help in making a significant impact.
Reducing Pollution
In 1995, the Vice President of the World Bank, Dr Ismail Serageldin said, "If the wars of this century were fought over oil, the wars of the next century will be fought over water-- unless we change our approach to managing this precious and vital resource." At Nike, 91% of its overall freshwater footprint is tied to material sourcing and manufacturing.
Growing cotton accounts for 69% of Nike’s overall global water footprint. Cotton is a key raw material for the fashion industry. The critical growth phase of cotton is being researched and strategies are being implemented to reduce water consumption. Nike's use of recycled cotton helps in reducing water use entirely.
The brand’s watershed restoration work focuses on reducing freshwater footprint, improving soil health and reducing pesticide runoff.
Reuse-A-Shoe
The fashion industry including Nike has a massive landfill problem. The used, damaged, and unsold inventory is mostly sent to landfill, especially in third-world or developing countries. Nike has set a goal to recycle 10X more used and defective products by 2025.
The company has set up Nike Refurbished in select North American stores. People can come in and give their used shoes to the store. They are also conducting workshops teaching up-cycling to help extend the life of Nike shoes. In addition to this, they’re sharing content (videos & blogs) to extend the life of their products for all their customers across the world.
Nike's sustainability practice has just begun to take shape. Through its multi-pronged approach, Nike is making changes from resources to its manufacturing cycle. To stay relevant for 57 years is no mean task, and Nike knows what it takes to get its eco-conscious customer's attention.
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Key Takeaways
- Nike's move to zero is a landmark initiative to achieve net zero emissions by 2050
- Its watershed restoration work is making a significant contribution to ensuring water security
- It has tied up with production partners who are certified for fair labor and sustainable practices
As a sustainability expert deeply immersed in environmental practices and corporate sustainability initiatives, my comprehensive knowledge and firsthand experience in the field allow me to provide valuable insights into Nike's sustainability program.
Nike's commitment to sustainability, encapsulated in its Move to Zero campaign, stands as a testament to the brand's proactive approach to climate change. The company acknowledges its substantial carbon footprint, equating it to that of a global city, and has set science-based targets to address this issue. In the fiscal year 2020, Nike's emissions totaled 11,706,664 metric tons of CO2e, a figure that underscores the magnitude of their environmental impact.
One of the focal points of Nike's sustainability strategy is the reduction of carbon emissions throughout its operations. The company has taken steps to incorporate recycled materials into its products, with 78% of Nike, Jordan, and Converse items containing some amount of recycled material. The goal is to increase the percentage of recyclable materials in upcoming products, as material consumption accounts for a substantial portion of the company's carbon footprint.
The reliance on low-impact materials, particularly recycled polyester derived from ocean plastic and plastic bottles, showcases Nike's commitment to minimizing environmental harm. By using high-quality yarn from these recycled sources, Nike aims to decrease carbon emissions by 30% compared to virgin polyester. Additionally, the pledge to transition to 100% sustainable cotton, leather alternatives, and other low-impact materials by 2025 exemplifies the brand's dedication to sustainable sourcing.
Nike's awareness of its freshwater footprint is reflected in its initiatives to reduce water consumption in material sourcing and manufacturing. With 91% of its overall freshwater footprint tied to these processes, Nike is actively researching and implementing strategies to mitigate water usage, particularly in the growth phase of cotton, a crucial raw material for the fashion industry. The use of recycled cotton further contributes to the reduction of water consumption.
The brand's innovative Reuse-A-Shoe program addresses the fashion industry's landfill problem by setting a goal to recycle ten times more used and defective products by 2025. Through Nike Refurbished stores and workshops on up-cycling, the company actively engages consumers in extending the lifespan of its products, thus contributing to waste reduction.
Nike's sustainability journey extends beyond environmental concerns to encompass fair labor practices. By partnering with production entities certified for fair labor and sustainable practices, Nike ensures that its supply chain aligns with ethical standards. This multifaceted sustainability approach underscores Nike's commitment to effecting positive change in various aspects of its operations.
In conclusion, Nike's sustainability initiatives, encompassing carbon emissions reduction, use of low-impact materials, freshwater conservation, and waste reduction, reflect a comprehensive and strategic approach to environmental and social responsibility. As an expert deeply entrenched in sustainability practices, I recognize the significance of Nike's Move to Zero campaign and its holistic efforts to create a more sustainable and responsible business model.
