2020 Targets Performance Summary

NIKE is a brand of Innovation, Growth and Purpose.

 

Our mission is to bring inspiration and innovation to every athlete* in the world. We do that by building creative and diverse global teams, making a positive impact in the communities where we live and work and by making products responsibly and more sustainably. We are driven by a commitment to transparency, accountability, and purposeful impact, reflected by our approach reporting progress toward our 2020 targets. Below is a summary of our progress.

Key
  • triangle pointing upIncrease
  • triangle pointing upUnfavorable
  • triangle pointing upFavorable )
  • triangle pointing downDecrease
  • triangle pointing downUnfavorable
  • triangle pointing downFavorable )

Unleash Human Potential

Community Impact

MetricUnit of MeasurementUnit of Meas.FY15 BaselineFY15 BLFY16FY17FY18FY19FY19 Change vs. BaselineTarget
Annual Investments as % of Pre-Tax Income%1.9%1.8%1.9%1.8%1.9%N/A11.5%
  1. 1 This is an annual target. Baseline and change vs. baseline are not relevant to this target.

Transform Manufacturing

Manufacturing2

MetricUnit of MeasurementUnit of Meas.FY15 BaselineFY15 BLFY16FY17FY18FY19FY19 Change vs. BaselineTarget
Factories Rated Bronze or Better%86%87%91%93%93%triangle pointing up 44 p.p.3
(vs. FY11 BL)
100%
Factories with Excessive Overtime%3.3%3.2%3.9%2.4%2.3%triangle pointing down 1 p.p.0%
  1. 2 Scope includes all finished goods manufacturing.
  2. 3 p.p. = percentage points.

Minimize Environmental Footprint

Product

MetricUnit of MeasurementUnit of Meas.FY15 BaselineFY15 BLFY16FY17FY18FY19FY19 Change vs. BaselineTarget
Average Product Carbon Footprint4kg CO2e/unit7.337.197.157.457.330%5triangle pointing down 10%
Product Scored on Sustainability Performance6%27%68%71%73%69%triangle pointing up 42 p.p.80%
  1. 4 This target includes NIKE-designed/developed Nike Branded, Brand Jordan, and NIKE Golf Global apparel styles, and Nike Branded, Brand Jordan, and NIKE Golf Global footwear styles. We are using CO2e emissions as a proxy for other environmental impacts (e.g. energy, other air emissions).
  2. 5 Average product carbon footprint is flat compared to the FY15 baseline due to an increase in both material per unit (apparel getting heavier) and manufacturing emissions intensity (driven by grid electricity in Vietnam and style/model mix). NIKE has two other FY20 carbon targets, which represent Tier 1 (finished goods manufacturing) combined with other key operations, and Tier 2 (materials finishing). The product target represents Tiers 1 through 4 (which includes materials manufacturing and raw materials production).
  3. 6 Product scope includes all product engines across Nike brand, Converse, and Hurley and Nike brand licensees.

Materials

MetricUnit of MeasurementUnit of Meas.FY15 BaselineFY15 BLFY16FY17FY18FY19FY19 Change vs. BaselineTarget
Sustainable Materials – Apparel (AP)7%19%21%33%34%41%triangle pointing up 22 p.p.triangle pointing up
Sustainable Materials – Footwear (FW)7, 8%31%31%32%32%30%triangle pointing down 1 p.p.triangle pointing up
Cotton Sourced More Sustainably9%24%35%53%60%1086%triangle pointing up 62 p.p.100%
  1. 7 We define more sustainable materials as those that reduce the environmental impact of a product through better chemistry, lower resource intensity, less waste, and/or recyclability.
  2. 8 FY16 and FY18 FW EPM percentages have been restated due to reporting variances identified through NIKE’s data governance processes.
  3. 9 Certified organic, Better Cotton (cotton grown according to the Better Cotton Standard System), or recycled.
  4. 10 FY18 has been restated due to a reporting variance identified through NIKE's data governance processes.

Carbon and Energy

MetricUnit of MeasurementUnit of Meas.FY15 BaselineFY15 BLFY16FY17FY18FY19FY19 Change vs. BaselineTarget
Renewable Energy – Owned or Operated11%14%20%22%22%27%triangle pointing up 13 p.p.100%
Energy Consumption Per Unit – Key Operations12kWhe/unit5.284.755.325.425.51triangle pointing up 4%triangle pointing down 25%
Carbon Emissions Per Unit – Key Operations12kg CO2e/unit1.891.731.901.971.94triangle pointing up 3%triangle pointing down 25%
Energy Consumption Per kg – Textile Dyeing & Finishing13kWhe/kg15.8615.4614.9514.4013.44triangle pointing down 15%triangle pointing down 35%
Carbon Emissions Per kg – Textile Dyeing & Finishing13kg CO2e/kg4.784.684.554.334.06triangle pointing down 15%triangle pointing down 35%
  1. 11 The target scope includes electricity only, where we make energy purchase decisions on strategic assets. Equivalent to absolute reductions in Scope 1 and 2 CO2e emissions of at least 50% by FY25. Target year to achieve 100% is FY25, not FY20. FY18 performance data for this target has been restated due to enhancements in NIKE’s PPA tracking processes (FY18) that have resulted in more comprehensive and accurate reporting.
  2. 12 Key operations represent finished goods manufacturing, inbound and outbound logistics, DCs, HQs, and NIKE-owned retail. Historical performance data for this target has been restated due to a shift in NIKE’s logistics’ emissions data source (FY15–18) and to enhancements in NIKE’s PPA tracking processes (FY18) that have resulted in more comprehensive and accurate reporting.
  3. 13 Measure includes focus suppliers only. Focus suppliers represent key suppliers involved in the dyeing and/or finishing of materials that directly support finished product assembly.

Waste

MetricUnit of MeasurementUnit of Meas.FY15 BaselineFY15 BLFY16FY17FY18FY19FY19 Change vs. BaselineTarget
Waste to Landfill – Footwear Manufacturing14%-6.6%3.9%1.8%0.1%triangle pointing down 6.5 p.p.0%
Waste Index – FW Manufacturing, Distribution Centers (DCs), and Headquarters (HQs)15-10098100103102triangle pointing up 2%triangle pointing down 10%
Landfill Diversion DCs and HQs16%88%87%88%87%89%triangle pointing up 1 p.p.triangle pointing up
  1. 14 Target covers waste to both landfill and incineration. Incineration does not include waste to energy recovery unless otherwise noted.
  2. 15 The waste index is a weighted average of our footwear manufacturing waste per unit, DCs waste per unit, and HQs waste per occupant. Baseline is FY15 except for Tier 1 FW Manufacturing and Converse HQ, which are FY16 and are included in Inc.-wide baseline for comparability across years.
  3. 16 Baseline is FY15 except for Converse HQ, which is FY16 and included in Inc.-wide baseline for comparability across years.

Water

MetricUnit of MeasurementUnit of Meas.FY15 BaselineFY15 BLFY16FY17FY18FY19FY19 Change vs. BaselineTarget
Freshwater Use Per Kg – Textile Dyeing and Finishing13L/kg-126.5117.2109.394.3triangle pointing down 25%triangle pointing down 20%

Chemistry

MetricUnit of MeasurementUnit of Meas.FY15 BaselineFY15 BLFY16FY17FY18FY19FY19 Change vs. BaselineTarget
Tested Material in Compliance with NIKE Restricted Substance List%95%99%98%99%98%N/A17100%
Compliance with the ZDHC Manufacturing Restricted Substances List (MRSL)18%---67%1879%triangle pointing up 12 p.p.100%
Focus Suppliers Meeting NIKE’s Wastewater Quality Requirements – Textile Dyeing and Finishing19%---40%51%triangle pointing up 11 p.p.100%
  1. 17 As we add new chemicals and tighten the limits, we may see a small number of failures as the supply chain adapts to the more stringent requirements. Due to these changes, we do not recognize a baseline or change vs. the baseline.
  2. 18 FY18 was NIKE’s first year tracking this metric. FY18 has been restated due to a reporting variance identified through NIKE’s data governance processes.
  3. 19 This target is now measured and reported using the ZDHC Wastewater Guidelines. Previously, this target was measured and reported using the BSR Standard. In FY17, we introduced the ZDHC Wastewater Guidelines, holding suppliers accountable to 24 additional conventional parameters and 202 hazardous chemicals, to vendors who produce approximately 80% of our materials. FY18 was the first year testing against the ZDHC Standard.
[object Object]