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 )

Community Impact

MetricUnit of MeasurementUnit of Meas.FY15FY16FY17FY18FY18 Change vs. BaselineFY20 Target
Invest a minimum of 1.5% of pre-tax income (PTI) to drive positive impact in our communities%1.9%1.8%1.9%1.8%N/A11.5%
  1. 1. This is an annual target. Baseline and change vs. baseline are not relevant to this target.

Manufacturing2

MetricUnit of MeasurementUnit of Meas.FY15FY16FY17FY18FY18 Change vs. BaselineFY20 Target
Source 100% from factories that meet our definition of sustainable.%86%87%91%93%triangle pointing up 44 p.p.3
(vs. FY11 BL)
100%
Eliminate excessive overtime (EOT)%3.3%3.2%3.9%2.4%triangle pointing down 0.9 p.p.0%
  1. 2. Scope includes all finished goods manufacturing.
  2. 3. p.p. = percentage points.

Product

MetricUnit of MeasurementUnit of Meas.FY15FY16FY17FY18FY18 Change vs. BaselineFY20 Target
Deliver products for maximum performance with minimum impact, with a 10% reduction in the average environmental footprint.4kg CO2e/unit7.337.197.157.45triangle pointing up 2%5triangle pointing down 10%
Greater than 80% of all NIKE, Inc. product will be scored on sustainability performance%27%68%71%73%triangle pointing up 46 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 C02e emissions as a proxy for other environmental impacts (e.g. energy, other air emissions).
  2. 5. Average product carbon footprint has increased 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). While NIKE has two other FY20 carbon targets that are both trending in the right direction, these other carbon targets 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).

Materials

MetricUnit of MeasurementUnit of Meas.FY15FY16FY17FY18FY18 Change vs. BaselineFY20 Target
Increase use of more sustainable materials6
Apparel (AP)
%19%21%33%34%triangle pointing up 15 p.p.triangle pointing up
Increase use of more sustainable materials6
Footwear (FW)
%31%33%32%31%0 p.p.triangle pointing up
Source 100% of our cotton more sustainably (certified organic, Better Cotton Initiative or recycled) across NIKE, Inc. by the end of calendar year 2020. 7%24%35%53%58%triangle pointing up 34 p.p.100%
  1. 6. 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. 7. Certified organic, Better Cotton (cotton grown according to the Better Cotton Standard System) or recycled.

Energy & Emissions

MetricUnit of MeasurementUnit of Meas.FY15FY16FY17FY18FY18 Change vs. BaselineFY20 Target
Reach 100% renewable energy (RE) in owned or operated faciliaties through FY25 and encourage broader adoption, as part of our effort to control absolute emissions8%14%20%22%19%9triangle pointing up 5 p.p.100%10
Decrease energy use and CO2 emissions 25% per unit in key operators (inbound and outbound logistics, distribution centers, headquarter locations, finished goods manufacturing and NIKE-owned retail)11kWhe/unit4.744.294.744.39triangle pointing down 7%triangle pointing down 25%
Decrease energy use and CO2e emissions 25% per unit in key operators (inbound and outbound logistics, distribution centers, headquarter locations, finished goods manufacturing and NIKE-owned retail)11kg CO2e/unit1.751.621.751.71triangle pointing down 2%triangle pointing down 25%
Decrease energy use and CO2e 35% per kg in textile dyeing and finishing processes12kWhe/unit15.8615.4614.9514.40triangle pointing down 9%triangle pointing down 35%
Decrease energy use and CO2e 35% per kg in textile dyeing and finishing processes12kg CO2e/unit4.784.684.554.33triangle pointing down 9%triangle pointing down 35%
  1. 8. 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.
  2. 9. Slight decline in FY18 is due to the delay between WHQ and Air MI facility expansions and building construction going live and being incorporated into the Oregon Power Purchase Agreement (delay is a regulatory requirement).
  3. 10. Target year to achieve 100% renewable energy is FY25.
  4. 11. Key operations = finished goods manufacturing, inbound and outbound logistics, DCs, HQ locations, and NIKE-owned retail. Previous years have been restated due to inclusion of estimated retail natural gas consumption outside of the U.S. and Canada.
  5. 12. 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.FY15FY16FY17FY18FY18 Change vs. BaselineFY20 Target
Eliminate footwear manufacturing waste to landfill or incineration, while continuing to reduce overall waste.13%N/A6.6%3.9%1.8%triangle pointing down 4.8 p.p.0%
Reduce waste index by 10%, covering footwear manufacturing, distribution centers and headquarter locations.14, 15N/A1001598100103triangle pointing up 3.0triangle pointing down 10%
Increase landfill diversion at distribution centers and headquarter locations.16%88%87%88%87%triangle pointing down 1 p.p.triangle pointing up
  1. 13. Target covers waste to both landfill and incineration. Incineration does not include waste to energy recovery unless otherwise noted.
  2. 14. The waste index is a weighted average of our footwear manufacturing waste per unit, DCs waste per unit and HQs waste. per occupant
  3. 15. 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.
  4. 16. Baseline is FY15 except for Converse HQ, which is FY16 and is included in Inc.-wide baseline for comparability across years.

Water

MetricUnit of MeasurementUnit of Meas.FY15FY16FY17FY18FY18 Change vs. BaselineFY20 Target
Innovate and adopt new approaches to reduce water use in our supply chain, with a 20% reduction in freshwater use in textile dyeing and finishing per unit of production12L/kgN/A126.5117.2109.3triangle pointing down 14%triangle pointing down 20%

Chemistry

MetricUnit of MeasurementUnit of Meas.FY15FY16FY17FY18FY18 Change vs. BaselineFY20 Target
100% compliance with NIKE Restricted Substance List (RSL).%95%99%98%99%N/A17100%
100% compliance with ZDHC Manufacturing Restricted Substance List (MRSL).%N/AN/AN/A68%18N/A100%
100% of focus suppliers meeting NIKE’s wastewater quality requirements for textile dyeing and finishing procedures12, 19%N/A58%73%69%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.
  3. 19. Measurement of supplier adherence to NIKE’s wastewater quality standards between FY16 and 18 in this table is based on a prior standard.