American multinational corporation, Nike was founded on January 25, 1964, as ‘Blue Ribbon Sports’, by University of Oregon track athlete Phil Knight and his coach Bill Bowerman. The company – which is engaged in the design, development, manufacturing, and worldwide marketing and sales of footwear, apparel, equipment, accessories, and services – officially became Nike, Inc. in 1978. It adopted the name Nike after the Greek goddess of victory.
History: Nike opened its first retail outlet in 1966 and launched the Nike brand shoe in 1972. The company went public in 1980, two years after it rebranded itself Nike Inc. By the early 21st century, Nike had retail outlets and distributors in more than 170 countries, and its logo – a curved check mark called the ‘swoosh’ – was recognized throughout the world.
Statistics: Headquartered near Beaverton, Oregon, in the Portland metropolitan area, today Nike is the world’s largest innovator and supplier of athletic shoes and apparel and a major manufacturer of sports equipment, with revenue in excess of US$37.4 billion in its fiscal year 2020, , making it the most valuable brand among sports businesses. As of 2020, it employed 76,700 people worldwide.
India Presence: Nike has a large presence in India with data stating there are 133 retail stores in the country as of January 24, 2023 in 56 cities.
- Manufacturing: Nike worked with apparel suppliers to increase motor efficiency and with footwear suppliers to reduce energy use in midsole processing. The brand is also exploring new finishing methods in materials manufacturing that could potentially cut energy and water use in half and significantly reduce emissions. Nike also continues to work with suppliers to maximize the use of renewable energy through the use of solar and biofuels. Nike is exploring different ways to support PPAs across its major markets and encouraging suppliers to take advantage of those opportunities where they exist. In FY21, suppliers contracted over 90 million kWh/year of offsite renewable energy for Nike production by engaging in PPAs. This includes Feng Tay Group, which contracted nearly 50 million kWh/year at three of their facilities in India.
- Supplier Program: In May 2020, NIKE launched a new climate program with NIKE’s Supplier Sustainability Council (SSC). The SSC is a group of strategic suppliers committed to sustainability to enhance their operational performance and mitigate risk while sharing out best practices in the hopes of elevating worker safety across the sector. Nike also developed the Supplier Climate Action Program (SCAP). Eleven of NIKE’s largest finished goods and materials suppliers committed to the program and account for approximately 60% of strategic supplier emissions. SCAP not only provides technical assistance to suppliers to help set more ambitious climate goals but also turns the process of achieving our supply chain emission reductions into an aligned strategic effort.
- Logistics: NIKE is working to not return to pre-pandemic air freight usage, through its Move to Zero air freight program. In FY21, the company continued to expand piloting alternative fuels for both ocean freight and air freight. These pilots used biofuels made from waste streams and carried certifications from the Roundtable on Sustainable Biomaterials and the International Sustainability and Carbon Certification. 28% of its total line-haul solutions are now multi-modal. Of its total line-haul trucking kilometers, 22% are driven on alternative fuels, mainly fueled with hydro-treated vegetable oil (HVO) solutions. Nike is also using electric trucks for deliveries in Tokyo, Seoul and Mexico City.
- Raw Materials: Materials account for approximately 70% of NIKE’s product carbon footprint. By tapping into the insights and experience of at least the past five years, Nike is now focusing on improving the environmental impact of materials within its products. For footwear, the brand is focused on improving specific, high-volume materials (polyester, rubber and leather), particularly through significant increases in the use of recycled versions and the necessary integrated business strategies.