Nike has just released its FY2020 Impact Report, pointing out how the past year set an important step for the company.
“The FY2020 has been an inflection year for Nike,” commented John Donahoe, president and CEO, Nike Inc. “This past year we used Nike’s scale and influence to raise the bar for sustainability. We launched our Supplier Climate Action Program to develop pathways for carbon reduction for our material and finished goods manufacturers. And we saw real progress throughout our supply chain,” he continued.
Among the goals Nike achieved in 2020 was a 30% reduction of water consumption in textile dyeing and finishing per kilogram of material, which can be equaled to a cumulative 40 billion liters of fresh water avoided by its suppliers since 2016.
Carbon emissions have also reached a reduction as the company is currently using 100% renewable energy in the US and Canada for its owned or operated sites, while globally, it was powered by 48% renewable energy. This means that since 2015 its footwear suppliers have achieved a nearly 10% reduction in energy consumption per each pair produced, Nike states.
Cover of Nike’s Impact Report 2020
The US sports company says that it has also reached some goals in waste management as 99.9% of its manufacturing scraps at its Tier 1 finished goods footwear suppliers were diverted from landfills. When summed up with past results, since 2015 more than 47 million kilos of manufacturing scraps were recycled into new footwear products.
Along with the closing of 2020, a new journey is starting for the activewear and sportswear specialist. “Our progress to date is measured against five-year targets we set for ourselves. As we’ve closed out these FY20 targets, we undertook a rigorous company wide effort to establish Nike’s new five-year roadmap for global impact–our Purpose 2025 Targets,” added Donahoe.
John Donahoe, president and CEO, Nike Inc.
“Such targets are not just aspirations. They are a call to action–with clear goals, strategies and accountabilities. For the first time, we will tie executive compensation to Nike’s progress in deepening diversity and inclusion, protecting the planet, and advancing ethical manufacturing.”
As part of its next goals for 2025, the company has 29 targets to achieve its ambitions meant to help shape a better future. Among them, it aims to reach a 70% absolute reduction in greenhouse gas (GHG) emissions in owned or operated facilities through 100% renewable electricity and fleet electrification. It expects that GHG emissions from its key suppliers’ manufacturing and transportation operations will be at or below its 2020 levels through use of renewable energy, energy efficiency and alternative fuels.
Nike also aims to reach a 10% waste reduction per unit in manufacturing, distribution, headquarters, and packaging through improved design and operational efficiency. It expects that 100% of its waste is diverted from landfills in its extended supply chain with at least 80% recycled back into Nike products or other goods, and it is determined to increase ten times the amount of finished product waste refurbished, recycled, or donated.
The company expects to reduce its fresh water usage per kilo in textile dyeing and finishing by
25% and restore 13 billion liters of water through a series of watershed projects for water-stressed ecosystems and communities within its own cotton supply chain.