Advancing Circular Solutions

Reducing waste is foundational to minimizing our use of the world’s finite natural resources. We embed waste reduction strategies into product design, packaging, manufacturing and operations—designing out waste from the start through improved pattern efficiency, innovative manufacturing methods and optimized processes. In FY25, we achieved our target of 10 percent reduction in waste per unit across manufacturing, distribution centers and headquarters.

When waste is generated, we maximize diversion from landfill and work to keep materials in circulation. In FY25, 98 percent of waste was diverted and 76 percent of waste was recycled from manufacturing, packaging, distribution centers and headquarters. We have succeeded in maintaining 100 percent landfill diversion across Tier 1 finished goods manufacturing, with the majority of diverted waste directed to recycling and the rest to energy recovery. In collaboration with suppliers, we continue to scale programs to recycle manufacturing waste into new products.

Since launching in 1992, our Nike Grind program has recycled over 155 million pounds of manufacturing scrap and end-of-life footwear into innovative products sold around the globe. Nike Grind is transforming waste into value through products such as gym flooring, weight training equipment, playgrounds and basketball courts.

Transforming linear supply chains into a more circular system begins at the earliest stages of product creation. We rethink material choices and construction details and integrate consumer insights to keep products and materials in play longer.

Recycled materials such as polyester contribute to our lower-carbon materials strategy, a key lever for achieving our science-based GHG emissions reduction targets. In addition, we are accelerating the innovation of next-generation materials that help build circular supply chains and reduce reliance on virgin resources. Through partnerships with commercial-scale textile-to-textile (T2T) suppliers and industry alliances, we are working to close the loop on polyester in global supply chains.

For example, Aero-FIT is NIKE, Inc.'s first elite performance apparel material made from 100 percent textile waste. This breakthrough was enabled by advanced recycling methods that produce a recycled polyester yarn equivalent in quality to virgin material. Innovations such as Aero-FIT demonstrate how performance and circularity can be seamlessly integrated.

We also consider ways to use design as an opportunity to give new life to old product. Through our Re-Create program, our team sources vintage and unsold NIKE, Inc. product, then co-creates exclusive collections with local designers and manufacturers.

Our goal is to extend the use of our products as long as possible, even after they’ve been used by consumers. In 1995, NIKE, Inc. launched the Reuse-a-Shoe (RAS) program in select U.S. stores to offer a collection service for consumers’ end-of-life shoes. RAS was our first step to helping consumers responsibly retire their product.

Today, we offer consumers a range of circular services around the world. Our Recycle & Donate (RAD) program, an evolution of RAS, accepts footwear and apparel. Collected product is first inspected, then donated depending on quality or sent to recycling channels.

Nike Refurbished also extends the life of gently worn, like-new or slightly imperfect Nike footwear and apparel by reselling returned products that have been inspected and cleaned. To date, two million products have been sold through Nike Refurbished.

To keep products in play longer, we also focus on cleaning and repair. An in-store sneaker cleaning service was piloted in Europe and Mexico this year. To support at-home cleaning and care at scale, we share tips on Nike.com and cleaning kits are available in select stores. We have been developing partnerships to deliver repair services and are scaling in targeted geographies and evaluating the opportunity to expand into new locations.

In FY25, we refurbished, recycled or donated 6.3 times the finished product waste (FPW) compared to FY20. Although our goal was to reach 10 times the waste refurbished, recycled or donated, this result reflects a reduction in the overall volume of unsold product, driven by improvements in product creation and manufacturing efficiency.

While we are proud of scaling our Recycle & Donate service, we recognize that brand-led take-back programs alone cannot solve the challenge of post-consumer waste in footwear and apparel. Advancing the collection, sorting and processing of end-of-life products at a scale that matches the size of the challenge calls for a broader, industry-wide approach. Keeping materials out of landfill and in circulation will require smart policy, new infrastructure and collective action by brands.

For example, Extended Producer Responsibility (EPR) for textiles is a set of policies that require companies like NIKE, Inc. to take financial responsibility for the end-of-life management of their products. When implemented effectively, EPR funds support the scaling of infrastructure needed to manage post-consumer apparel and footwear. We support these developments through participation in industry initiatives that address scalable solutions for post-consumer waste.