Timeline G L O B A L N I K E 1992 Nike first learns about the global warming potential of SF6. 2003 Nike develops a baseline of inbound logistics and subcontracted manufacturing 1988 The World Meteorological Organization and the United Nations Environment Program establish IPCC 2001 (September) The IPCC releases its Third Assessment. Reaffirms warming trend and human impact 1995 The IPCC’s Second Climate Assessment is published,serving as the basis for Kyoto Protocol. 1997 (December) Kyoto Protocol adopted. 2005 (February) The Kyoto Protocol begins. The United States, refuses to ratify 2007 (Feb) IPCC 4th assessment 1997 (September) Nike commits to fully phase SF6 out of footwear and begins to transition some models to Nitrogen 2001 (October) Nike joins WWF Climate Savers. Sets CO 2 emissions reduction targets for owned operations and business travel. 2005 Nike exceeds WWF target of 13% reduction - reaches 18% CO2 reduction 2006 (June) Nike completes phase out of all f gases in Nike branded footwear 2007 (May) Nike sets new targets
Our Climate Goals WHERE WE WORK MOVING PEOPLE MAKING PRODUCT (Footwear contracted manufacturing) Reduction Target TBA MAKING PRODUCT Apparel contracted manufacturing MOVING PRODUCT (Logistics to first point of distribution) 30% Absolute Reduction in CO2 footprint from 2003 Baseline by 2020 Tier 1 Tier 2 (2005) (2005) (2003 baseline) MAKING PRODUCT (Equipment contracted manufacturing) Nike Footprint: 1.36 m metric tons WHERE WE WORK Nike Brand Climate Neutral Facilities by 2011 Nike, Inc. Climate Neutral Facilities by 2015 MOVING PEOPLE Climate Neutral Business Travel by 2011 MAKING PRODUCT (Apparel contracted manufacturing)
Invest in IT: Make virtual communication a viable alternative to travel
Build awareness of travel proliferation and environmental consequences
USE RENEWABLE ENERGY N/A OFFSET Buy offsets for each flight HIGH Brand HIGH ROI HIGH Control
Global growth and matrix structure makes meaningful communication and relationship building necessary.
On-site commercialization encourages developers and designers travel to factories.
Rapidly increasing SG&A make travel reduction a financial priority.
MOVING PEOPLE Nike Brand Climate Neutral Business Travel by 2011 Nike, Inc. Climate Neutral Business Travel by 2015 LOW CO2
Nike, Inc. rated a top commuter workplace by EPA Global HQ building awarded Oregon’s first LEED EB Gold Europe HQ runs on 100% renewable energy EMEA Dist. Center uses 6 windmills for all of its energy Global HQ purchases renewable energy credits for 100% of energy used Where We Work
Nike energy consumption has not increased since 1998 despite a 25% increase in square footage. (USA)
2% absolute decrease with 6% growth in facilities. (Global)
Green power and “tags” grew from 1% in 2002 to 52% in 2007.
Where we work: Facilities and Retail HIGH Brand HIGH ROI HIGH Control
Rapid growth of factory stores.
Many small NLO’s dispersed around the world.
LEED certified factory stores makes a statement in each community where a store is based.
Global presence lets us advocate for renewable and green design globally.
Energy Efficiency upgrades
LEED certified retail and offices
USE RENEWABLE ENERGY
Invest in Wind and Solar
Regional opportunities to buy green power directly from utility
Renewable Energy Credits (RECs) offset % of CO2 footprint