2Sustain

On Friday, Nike released its fiscal 2007 to 2009 Corporate Responsibility (CR) report in which it outlines long-term strategies designed to prepare the company to thrive in a sustainable economy.

Nike says these new strategies represent a shift from a previous CR model based on risk management, philanthropy and compliance. Now, the company will focus on innovation, collaboration, transparency and advocacy. This new push for “Sustainable Business and Innovation” (SB&I) will be more seamlessly integrated across Nike’s business strategies, creating a more sustainable approach aimed at providing greater returns to its business, communities, factory workers, consumers and the planet, according to a press release.

The Nike CR report outlines some important initiatives for the company including:

• Considered Design Considered Design combines sustainability principles and innovative performance products for athletes by reducing or eliminating toxics and waste and increasing the use of environmentally preferred materials.

• GreenXchange (GX) GX is a web-based marketplace designed to share intellectual property which can lead to new sustainability business models and innovation. Essentially, it’s a system for capturing, sharing and licensing patents that, when used by someone else, could lead to unlimited innovation in helping solve current obstacles to sustainability issues. By making private intellectual property visible and usable, the aim is to accelerate the development of green innovation.

• Lean and Human Resource Management (HRM) Nike has been working with contract factories to train them in the implementation of specialized Lean manufacturing and HRM. While only one aspect of Nike’s work with contract factories, the company recognizes HRM as an important pillar of Nike’s strategy to build a more lean, green, empowered and equitable supply chain.

• Sport for Social Change Nike has furthered its strategy of using sport as a powerful movement for social change. For example, Nike partners with Grassroot Soccer in Africa.  This community program addresses a dire social need through raising awareness and education of HIV/AIDS by enabling young people to make informed decisions, using sport as a catalyst to engage and communicate to boys and girls.

• Energy and Climate Change Strategy In 2009, Nike instigated the formation of new coalition of consumer companies called Business for Innovative Climate and Energy Policy (BICEP) which is advocating for strong U.S. climate and energy legislation with the aim of creating a level playing field through a cost on carbon and unlocking innovation that is essential to creating technology and infrastructure solutions. Nike aims to be ahead of the curve of mandatory regulation, energy price increases and volatility and consumer pressure.

In addition, the report offers details about Nike’s specific targets and performance. For example, the company has reduced its overall CO2 emissions across the company and its supply chain by 4 percent in fiscal year (FY) 2009, compared to FY08.  Nike also reduced its CO2 emissions from company-owned and operated facilities 15 percent in FY09 from FY07 levels; CO2 emissions from inbound logistics declined 9 percent between FY07 and FY09.

From the report:

We do not believe we have to make an “either/or” choice between addressing business needs today and attending to the impacts of the future. We must do both. Environmental issues and considerations are the pressing business issues for both tomorrow and today. Taking environmental issues into account is critical for future financial success and for the long-term sustainability of the business. Doing this in a manner which does not compromise the performance of today’s products and today’s business results is our challenge, but it is a challenge we are confident we can continue to overcome.