Our Carbon Footprint and Our Next Steps

As we move forward, we’ll draw on lessons learned from our journey so far – including setbacks as well as breakthroughs.

Looking back over the past five years, for instance, we fell short of meeting our FY20 carbon reduction goals. Despite reducing material waste and expanding renewable energy, we faced challenges with shifts to more complex materials and product designs, inbound airfreight, and changes to the electric grid in some of our primary manufacturing regions. In relying on aggregate metrics, such as average product carbon footprint, we missed opportunities to sharpen focus on our biggest carbon “hotspots.”

So, we’re changing our approach. Through our 2025 carbon targets, we’re stepping up with more clarity and precision. Across the company, our teams are pulling together with surgical focus on our biggest challenges – and our biggest opportunities: sustainable materials, renewable energy, and energy efficiency.

We know that materials matter, for instance, because they account for 70 percent of our carbon footprint. We’re rising to the challenge by accelerating research and development around sustainable materials, and exploring opportunities to bring low-carbon alternatives to market at scale.

We’re also pushing deeper into our extended value chain, which generates the vast majority of our greenhouse gas emissions, to slow the trajectory of emissions – even as our business grows. To do this, we’re teaming up with suppliers, industry partners, and even competitors to invest in solutions such as solar power and alternative fuels. (By contrast, if we were to follow a “business as usual” approach, our analysis shows that our emissions would increase over 30 percent by 2025.)

And all across Nike, we’re raising the bar for accountability with annual benchmarks; quarterly scorecards; and for the first time, executive compensation tied to our progress.