Sustainability is a catalyst for revolutionizing the way NIKE, Inc. does business – by innovating better solutions to create a limitless future that benefits athletes, the company and the world.
Sustainable innovation is at the core of NIKE, Inc., innovating across design and materials to manufacturing and retail, while driving cross-industry collaborations that bring game-changing solutions to scale.
Traditional shoe uppers consist of multiple parts cut-and-sewn together. Nike Flyknit revolutionized the age-old craft of shoemaking by knitting shoe uppers precisely engineered for strength and support where it’s needed while reducing waste in the manufacturing process. Learn more.
Developed using data from the Nike Materials Sustainability Index, the MAKING App is an easy-to-use tool to inspire designers and creators to consider better choices in the materials they use. Learn more.
Since 2010, NIKE, Inc. has transformed the equivalent of more than two billion plastic bottles into high-performance gear. That’s enough to cover 3,500 soccer pitches. Learn more.
It takes 30 liters of water to dye a t-shirt using traditional dyeing methods. ColorDry technology removes water from the dyeing process by using recycled CO2 to infuse fabric with intense, saturated color. Learn more.
Founded in 2010 as a strategic collaboration between NIKE, Inc., NASA, the U.S. Department of State and the U.S. Agency for International Development, LAUNCH identifies and supports visionaries whose ideas, technologies or programs have the potential to create a better world. Learn more.
Since the 1990s, Nike has collected more than 28 million pairs of used athletic shoes, recycling them into new superior performance gear and incorporating them into thousands of sports surfaces. Learn more.
At NIKE, Inc. we understand our business has environmental and social impacts that can be reduced by changing the status quo. We have worked across our operations – from design to delivery, materials to contract manufacturing – to understand where our actions have the greatest impact and where we can influence the greatest change.
At Nike, we define waste as any material purchased anywhere in our supply chain that does not ultimately end up as a useful component of product, or cannot be reused at the end of product life. This includes packaging, shipping material and product samples, in addition to a wide range of manufacturing waste - such as scrap fabric, leather and rubber. This broad definition forces us to think about waste at all points across our value chain. Through innovative manufacturing methods like Nike Flyknit technology, which revolutionized the age-old craft of shoemaking by knitting virtually seamless shoe uppers, we are reducing manufacturing waste in our supply chain. Our ultimate, long-term vision is to create finished products with zero waste, as well as “closing the loop” on materials use – that is, using only materials that can be fully recycled into new products. Read more about our waste reduction initiatives.
Climate change and the related issue of ever-increasing energy demand pose challenges to our business, our industry and society. Reducing our own contributions toward climate change is a primary aim of our sustainability strategy. We’ve been working for well over a decade to understand, track and decrease energy use and greenhouse gas emissions across our value chain and to share what we’ve learned with others. But we know that doesn’t go far enough, so we also work to provide leadership in the business community, and beyond, toward climate stability. Read more about our energy and climate initiatives.
For more than 15 years, we’ve been on a journey to understand the important role we can play in helping create an environment of collaboration, partnership and transparency to improve the lives of workers in contract factories around the world. We focus on working with long-term, strategic suppliers that demonstrate a commitment to worker engagement and well-being. We expect factories that make our products to comply with all requirements in our Code of Conduct and provide strong incentives for improving their labor performance. We know that the entire labor system, including other brands, NGOs, government and factory leaders, must come together to effect long-term change, and we are committed to that work. Read more about our labor initiatives.
We are committed to making Nike products in ways that protect workers, consumers and the environment – all while delivering the high quality and performance for which we are known. One aspect of this commitment is our goal to eliminate, reduce and responsibly manage hazardous chemicals in our supply chain. In addition to our Restricted Substance List (RSL), which details chemical compounds that cannot be present in any finished NIKE, Inc. product, we have programs in place that promote the use of “green chemistry,” encourage better choices in the design of products, and empower and encourage our vendors and contract factories to identify toxics in their processes and find alternatives. Read more about our green chemistry initiatives.
Water stewardship – including attention to water quantity and quality – is an essential part of NIKE, Inc.’s sustainability strategy. We are working to design products from materials that require less water to produce as well as help material vendors and contract factories to reduce their water-related impacts, and eliminate hazardous substances from discharging into water. One way we're doing this is through innovations like Nike ColorDry technology, a revolutionary way to dye fabric that uses zero water while delivering exceptional color. Not only does ColorDry save water, it eliminates the use of process chemicals used in the traditional dyeing process. Innovations like ColorDry will help us reach our ultimate goal to borrow water responsibly and return it clean to communities. Read more about our water initiatives.
We leverage the power of our employees, brands, consumers and partners to support organizations and collaborations that create positive long-term changes that expand access to sport, empower adolescent girls in the developing world, and support the communities in which we live, work and play. Through work such as the Girl Declaration – informed by more than 500 girls in more than a dozen countries, and by experts from 25 of the world's leading development organizations – we are putting forth a call to action to put girls at the heart of the post-2015 development agenda. We continue to focus on finding the most effective and innovative approaches and programs for driving meaningful change in communities. Read more about our community initiatives.
At Nike, sustainable innovation means constantly seeking new ways to push performance forward without compromise. When innovation becomes the engine that drives performance up and waste down, that’s not just sustainable, it’s unstoppable. Learn more at Nike Better World.
One of our responsibilities as a global company is to play a role in bringing about positive, systemic change for workers within our supply chain and in the industry. We've run the course – from establishing a Code of Conduct that covers worker protections as well as environmental impacts to pulling together an internal team to enforce it, to releasing our contract factory Audit Tools and working with external bodies to monitor factories and work with stakeholders. Our focus now is on getting to the root of the problems, evaluating our supplier and manufacturing relationships, and finding new ways to define and share responsibility. We believe that placing the worker at the heart of the workplace and having a factory management that respects and invests in its workforce will result in lasting positive results for workers, the factory and NIKE, Inc.
In 2005, we were the first company in our industry to disclose the names and addresses of contract factories producing Nike product,. We’ve now furthered our commitment to transparency by disclosing the factories worldwide that manufacture all NIKE, Inc. (NIKE Brand, Converse, Hurley, Jordan Brand and Nike Golf) products. We remain committed to supply chain transparency and continue to update our publicly available list to encourage and support transparency and collaboration. Our supplier list, which can be filtered for collegiate factories, is available for export on our Interactive Global Manufacturing Map.
MANUFACTURING MAP DISCLAIMER
The factories featured on this map are "above-the-line" NIKE, Inc. contract factories active as of the date listed on the map. "Above-the-line" refers to all product manufacturing sites directly contracted by NIKE, Inc., licensees, or agents delivering finished goods ready for retail and/or public consumption and bear the NIKE, Inc. brand logos and marks. Excluded, for example, are material suppliers.
The NIKE, Inc. brands are filtered by: Nike (includes Jordan Brand and Nike Golf), Converse and Hurley.
Contract factories provide the data based on a predefined profile. This profile is validated when audits are performed during the year and updated annually.
Contract factory worker totals include management and line workers. The line workers constitute direct labor. Female and migrant worker percentages are averages and based on the number of line workers.
Migrant Workers: For the purposes of this disclosure, internal migration is the movement of workers within a country and foreign migration is the movement of workers from one country to another. The migrant worker figures reported are intended to represent the Foreign Migrant Workers in Nike's global contract supply chain. However, we are aware that in some countries with high levels of internal migration, the figures are a mix of internal and foreign migration. We are working to improve the accuracy of this data.
Our greatest responsibility as a global company is to play a role in bringing about positive, systemic change for workers within our supply chain and in the industry. When we look at our overall impact on the world, the needs of nearly 1 million workers in Nike’s contract supply chain overshadows any other group. We also know the size and scale of the combined manufacturing operations has a considerable environmental impact. Since our Code was first adopted in 1991, it has evolved to provide consistency, clarity and alignment across NIKE, Inc., and the industry. It remains a straightforward statement of values, intentions and expectations meant to guide decisions in factories.
We require factories doing business with Nike to post the Code, and we have strengthened the standards by which we measure compliance. We share our Code and the accompanying standards with the public, to keep focused on the high expectations we have set and allow others to understand how we operate and how they can adopt, refine or build on our experience.
Nike Code of Conduct (Posted August 2010)
Converse Code of Conduct (Posted October 2010)
Hurley Code of Conduct (Posted October 2010)
View translations of the Code of Conduct.
While Nike’s Code of Conduct lays out the expectations we have of contracted factories, our Code Leadership Standards articulate the steps factories can take to put the Code into practice and how we measure their efforts and compliance.
Download the complete NIKE, Inc., Code Leadership Standards. [Posted May 2014)
View translations of the NIKE, Inc., Code Leadership Standards.
Our expectations are high but with the right partners, we can redefine the conventional. Together, we will drive systemic change. Visit the Nike, Inc. Licensee/Agent SM&S Playbook for more information.
Over time, we’ve moved from viewing corporate responsibility as a necessity for managing risk to seeing it as an opportunity to create value for our business and innovate for a better world. To help achieve our own goals and priorities, NIKE, Inc. uses a robust corporate responsibility reporting process. Reporting pushes us to share information about our sustainability commitments and then measure and make public our progress toward meeting those commitments.
Through reporting, we’ve come to better understand and address our environmental footprint, especially our use of water, our creation and reuse of waste and the toxicity of materials and processes used to make our products. Reporting also requires us to be transparent about the impact we have on our contract factory workforce. In preparing our reports, we are listening and responding to stakeholders to provide a clear picture of our aims and progress in incorporating responsible practices into our operations.
View the FY 12/13 Sustainable Business Performance Report.
View previous report:
FY 10/11 Sustainable Business Performance Report
FY 07-09 Sustainable Business Performance Report
FY 05-06 Sustainable Business Performance Report
FY 05-06 China Sustainable Business Performance Report
FY 05-06 Energy Efficient Update
FY 04 Sustainable Business Performance Report
FY 01 Sustainable Business Performance Report
NIKE, Inc. code of ethics for employees is called Inside the Lines; it defines the standards of conduct we expect of all our employees. Employees are required to annually verify that they have read and understand these standards. We operate a global toll-free Alertline for employees to confidentially report any suspected violations of the law or our code of ethics. Any reported concerns around accounting, auditing or internal controls are communicated to the Audit Committee of the Board. We expect our suppliers to share our standards and to operate in a legal and ethical manner. Our Code of Conduct covers contractors that manufacture products for Nike and our affiliate brands. It requires them to respect the rights of their employees and to provide a safe and healthy work environment.
Nike’s Board of Directors is responsible for corporate governance in compliance with legal requirements and the interests of our shareholders. The Board is currently composed of independent nonexecutive directors as defined by the New York Stock Exchange. In 2001, Nike formed a CR Committee of the Board with oversight of environmental impact and sustainability, labor practices, and corporate responsibility issues in major business decisions. Visit the Governance section of our FY12-13 Sustainable Business Report for more information.
In fiscal year 2006, we created a management framework to ensure executive accountability for corporate responsibility across NIKE, Inc. The Chief Sustainability Officer reports directly to the CEO, and co-manages a number of dedicated teams with business and functional executives to develop and review policies for Board approval, approval of CR investments and evaluating and refining approach and direction.
Nike has come a long way since it was founded in 1972 on a handshake between an athlete (Phil Knight) and a track coach (Bill Bowerman). In the early years we learned some tough lessons about operating a complex global supply chain. Since then we have been on a journey to understand the important role we can play in helping create an environment of collaboration and transparency. We are now harnessing the power of innovation to manage risks, create opportunities and meet our sustainability and social goals.
While we’ve made significant progress and continue to push ourselves and our industry to do better, we know that some questions still arise about how we work.
Yes. We constantly evaluate the impact of our business and set public targets for improvements. We encourage innovation throughout our entire supply chain and promote responsibility toward workers, the community and the planet. We know that no one organization can solve the social and environmental challenges we face, and we are committed to industry collaboration and open innovation to help foster a better world. For more details, visit the Nike Sustainable Business Performance Summary.
The majority of Nike’s environmental impact occurs in the supply chain. The most significant impacts are associated with materials production, from raw material growing or extraction to processing and finishing. To address this impact area, we pioneer new ways that contract factories make our products – like Nike Flyknit technology, a revolutionary way to construct a shoe upper out of single strands of yarn, resulting in a strong, light-weight upper that drastically reduces waste and materials – and seek materials innovations that enable us to use only what is needed to create the lightest, best-performing products for athletes. Read more about the innovative ways we’re reducing Nike’s environmental footprint.
Nike does not condone the use of child labor or sweatshop conditions in our contact factories. We require contract manufacturers to comply with Nike’s Code of Conduct and have taken active steps to help prevent underage workers being employed in the factories we contract with – in fact, the average age of a worker in factories that produce Nike product is 32. We believe that placing the worker at the heart of the workplace and having a factory management that respects and invests in its workforce will result in lasting positive results for workers, the factory and Nike. Read more about how we’re working with factory owners to improve labor conditions.
Nike is committed to responsible employment practices and we expect the same of our suppliers. In terms of wages, Nike’s Code of Conduct requires our suppliers to pay their employees at least the minimum wage required by country law. As part of our commitment, Nike also provides suppliers with education that helps build management capabilities to improve worker engagement and well-being. Read more about how we're working with contract manufacturers to help them improve employee skill levels, work environment and compensation.
We source product from 715 factories, employing nearly 1 million workers across 44 countries*. We do not own or operate any of these factories, except for 73 in-house manufacturing centers in the U.S. where we make patented parts. In 2005, we were the first company in the industry to disclose the names and locations of our contract factories, and today that information is available on the Nike Manufacturing Map
* Current as of August 2014
We are focused on working with long-term, strategic suppliers that demonstrate a commitment to engaging their workers, safe working conditions and environmental responsibility. We expect factories that make our products to comply with all requirements in our Code of Conduct and provide strong incentives for improving their environmental and labor performance. It’s a team effort. Read more about how we’re working to incentivize improved factory conditions.
As a company working with 715 contract factories employing nearly 1 million workers in 44 countries*, we recognize that issues do occur – and we take immediate action. We investigate what happened and work with the contract factory to address the issue and improve the process to help prevent problems occurring again. Read more about how we’re working to create a more sustainable supply chain.
* Current as of August 2014
We are committed to the safety of our products, consumers and the environment. We maintain a stringent Restricted Substances List, which prohibits the use of certain hazardous chemicals, and encourage our vendors and contract factories to embrace green chemistry and other ways to eliminate, reduce and responsibly manage toxic chemicals. Through innovations like our environmentally preferred rubber, which contains 96% fewer toxins by weight compared to the original formula, and Nike ColorDry, a revolutionary method of dyeing fabric without the use of water or process chemicals, we aim to reach zero discharge of hazardous chemicals by 2020.
In fiscal year 2013, Nike contributed more than $52 million in cash, products and in-kind donations. From expanding access to sport and physical activity to young kids, to empowering adolescent girls in developing countries and beyond, we invest our money, time and expertise in strategic plans to improve the communities where we live, work and play. See how we’re making a difference in communities around the world or check out our Charitable Giving Guidelines.
We voluntarily publish our bi-annual Sustainable Business Report that provides in-depth information on a wide range of our initiatives and progress against our sustainability targets.