GlobalData offers a comprehensive analysis of NIKE, providing key insights into its Environmental, Social, and Governance(ESG) factors. By closely monitoring and aggregating mentions of climate change and associated ESG keywords, GlobalData delivers valuable information on NIKE‘s ESG performance. GlobalData’s company profile on NIKE offers a 360-degree view of the company, SWOT analysis, key financials, and business strategy including insights on ESG implementation among other information. Buy the report here.
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NIKE, a global sportswear company, has set net-zero targets to reduce its greenhouse gas (GHG) emissions by 2050. In the fiscal year 2022, the company disclosed its comprehensive emissions data, showcasing a total carbon footprint of 9,953,566,590 metric tons of CO2e. This included 50,868 metric tons of CO2e from scope 1 emissions, 24,900 metric tons of CO2e attributed to scope 2 (market-based emissions), and a substantial scope 3 emissions figure of 9,953,490,822 metric tons of CO2e. In the reporting period, the company's scope 1 emissions grew by 43% compared to the 2015 baseline and 9% year-over-year. This increase is due to the expansion of owned facilities and the limited availability of scalable, lower-carbon alternatives. Despite these challenges, the company achieved a substantial 93% adoption of renewable electricity, resulting in an 89% decrease in Scope 2 emissions compared to the baseline (67% decrease versus 2021). Ongoing efforts aim to explore additional options for expanding the renewable electricity portfolio, targeting 100% renewable electricity by 2025.
The company has established interim emission reduction targets for 2025 and 2030. It aims to achieve a -70% reduction in Owned or Operated Facility GHG Emissions within scopes 1 & 2 by 2025. Additionally, for scope 3, the target is a reduction of 0.5 million metric tons of GHG emissions through an increased use of environmentally preferred materials, aiming for 50% of all key materials. Looking ahead to 2030, the company has set Science-Based Targets (SBT) with a goal of achieving a -65% reduction in scope 1 and 2 emissions and a -30% reduction in scope 3 emissions.
NIKE has taken various steps to reduce emissions and achieve its net-zero targets. The company has invested in renewable energy sources such as solar and wind power, as well as power purchase agreements (PPAs) and energy attribute certificates (EACs). These initiatives help reduce emissions from electricity consumption, particularly in facilities located in the US, Canada, and the European Economic Area.
In terms of transportation emissions, NIKE is working to reduce its carbon footprint in inbound and outbound logistics. The company sources emission factors in compliance with European standards for calculating and declaring energy consumption and GHG emissions of transport services. It also recognizes the uncertainty in estimating emissions from commercial air travel and logistics due to unforeseen circumstances.
In conclusion, NIKE is dedicated to achieving net-zero emissions and reducing its GHG impact. The company is actively pursuing short-term and long-term Science-Based Targets (SBT), involving investments in renewable energy and adherence to emission standards in transportation. NIKE's initiatives underscore its commitment to sustainability and environmental responsibility.
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