History of CR at Nike

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1 History of CR at Nike 1992 Nike Environmental Action Team (NEAT) 1993 Nike Reuse a Shoe Program Inception 1998 Nike Sustainability Initiative Adoption of Code of Conduct 1 st VP of Corporate Responsibility 2001 Joined WWF Climate Savers program 2002 NikeGo Launch 2004 First CR Report 2006 Elimination of F-gases innovate for a better world 1

2 Nike Corporate Initiatives: Nike s commitment to WWF WHERE WE WORK, MOVING PEOPLE: Reduce carbon dioxide (CO 2 ) emissions 13% below 1998 levels by Includes: CO 2 from Nike-owned facilities and business travel Conserving energy, buying green power, and investing in community energy-efficiency projects MAKING PRODUCT, MOVING PRODUCT: Supply Chain CO 2 baseline 2003 Footwear and Apparel contracted manufacturing Logistics 2

3 Nike, Inc. CO 2 Emissions WHERE WE WORK (2002) MOVING PEOPLE MOVING PRODUCT (2002) (Logistics to first point of distribution (2003 baseline) MAKING PRODUCT Apparel contracted manufacturing (2003 baseline) MAKING PRODUCT (Footwear contracted manufacturing) (2003 baseline) 3

4 Energy Productivity (Efficiency) Activities New Construction Energy Modeling/analysis Utilization of energy efficiency measures with a 5 year or less payback Energy Monitoring HVAC Retro-commissioning 15 30% Whole building energy consumption reduction Typical payback 0.5 to 2 years Lighting upgrades HID T5HO fluorescent High Performance T8 LED Accent/Display Incandescent removal/retro-fit 4

5 Renewable Energy Activity Green power purchases increased from 1% in 2002 to approx. 21% 2005 European Distribution Center- hosts six 1.5 Megawatt wind turbines. (blades = 39 meters) turbines produce power equal to total Distribution Center electricity usage European HQ purchases 100% renewable power (since 2003) and utilizes on-site geothermal energy to provide hot water to the facility World HQ now purchases 100% green power (as of June 2006) Installing photovoltaic panels to supply electricity to the Portland Airport Factory Store US Based DCs purchasing 100% green power (as of June 2006) 5

6 Nike Corporate Initiatives: Nike Grind 6

7 Nike Corporate Facilities Sustainability Initiatives USGBC LEED-EB Gold award (Ken Griffey Jr. building) Pilot project received 44 points US EPA Energy Star rated (Four buildings) Consume less energy than 75% of similar buildings in the US US EPA Green Power Partnership Leadership Group 25 th largest purchaser of renewable energy in the US Salmon Safe Corporate Campus Certification Pilot project first corporate campus certification in the country Reduced greenhouse gas emissions 18% below 1998 levels as of January 1, One of seven companies worldwide participating in the program (polaroid, ibm, johnson & johnson, lafarge, the collins companies, and sagawa express) 7

8 Nike, Inc. World Headquarters Ken Griffey, Jr. building US Green Building Council Leadership in Energy and Environmental Design for Existing Buildings (LEED-EB) Gold certification 8

9 Nike Corporate Facilities Sustainability Initiatives Food services food donation, organic fair trade coffee, 25% of all food is organic, hormone free products Yard debris and food composting program capture 25 tons of waste each month Wide use of advanced technology lighting including ceramic metal halides, induction, T5, high performance T8, daylighting, and occupancy sensors LCD computer monitors Recommissioned all WHQ buildings 100% renewable energy credits Duplexing printers 100% post consumer recycled content office paper Soft copy AP system Electric vehicle plug-in stations 2007 vehicles purchased as bio-diesel, diesel scheduled for retrofit, or hybrids 9

10 PURPOSE Identify top six things on campus that will engage employees and provide measurable impact INNOVATE FOR A BETTER WORLD Raise Consciousness Change Behavior Employee Air Travel Reduction Initiative Employee Air Travel CO 2 Offset Initiative Zero Waste Work Areas Carbon Lite Buildings Zero Paper Work Areas Plastic Water Bottle Elimination 10

11 PURPOSE Identify top six things on campus that will engage employees and provide measurable impact INNOVATE FOR A BETTER WORLD Raise Consciousness Change Behavior Zero Waste Work Areas 1

12 Keys to Nike s Success Strong support from Nike Senior management and employees Making sustainability part of the culture and making a stand to be responsible All buildings built after 1997 are designed to meet LEED standards, even if certification not pursued during construction. Make sustainable options a part of any product or equipment selection process Sustainability Coordinator position created with performance expectation to save 2X annual salary in initiatives. Full time position Strong drive for innovation and being on the leading edge is part of the culture Innovate for a better world 12