Nike

No leading practices were identified in the governance and strategy area.

Resource exploitation and circularity
Nike discloses its inputs, including its material footprint.

Water
Nike has set targets to reduce 25% of its freshwater use in textile dyeing and finishing by 2025. The company has a clear group-wide strategy for freshwater use reduction, which involves collaborating closely with suppliers to establish freshwater reduction targets.

Solid and air pollution
Nike reports some activities to reduce plastic use and waste in its own operations. The company targets reducing finished product waste and provides yearly data on the number of finished products refurbished, recycled, or donated.

GHG emissions
Nike is reducing its scope 1 and 2 greenhouse gas emissions. The company has a time-bound target, aligned with a 1.5-degree trajectory, to reduce its scope 1 and 2 emissions, which it reports progress against. Moreover, the company is reducing its scope 3 emissions. It has a time-bound target to reduce its scope 3 emissions which it also reports progress against.

No leading practices were identified in the social inclusion and community impact area.

Sustainability strategy and accountability
While Nike has established clear targets for GHG emissions, water use, and waste production, no evidence has been found in the public domain that the company has established targets for non-GHG air pollutant production, use of terrestrial ecosystems, water pollutants, or biological disturbances. Moreover, while the company reports having an LTIP program associated with “People & Planet”, it is unclear based on the information available in the public domain what 2025 targets it encompasses. The company does not disclose whether its highest governance body has expertise regarding nature-related topics.

Stakeholder engagement
Nike does not disclose how it engages with stakeholders, nor the issues it raises during such activities.

Lobbying
Nike does not report on its lobbying and advocacy practices on nature-related issues, nor whether these activities align with its sustainability strategy.

Impact and dependencies assessment
Nike has not holistically assessed its impacts or how it depends on nature, including biodiversity. It has an opportunity to start such an assessment across its value chains, focused on quantification of its impacts or dependencies.

Key areas and species
Nike does not disclose key species or areas important for biodiversity affected by its operations or suppliers. It has an opportunity to increase its transparency.

Ecosystem conversion and restoration
No evidence was found regarding Nike’s efforts to avoid ecosystem conversion, including deforestation, or promote restoration. The company has an opportunity to develop a strategy and publicly report on specific, time-bound targets.

Resource exploitation and circularity
Nike does not report quantitatively on its group-wide circularity performance. It also does not disclose efforts to improve soil health.

Water
Nike reduced freshwater use in textile dyeing and finishing in 2021 compared to 2020, but does not disclose metrics across its operations. The company does not report how much water is withdrawn for its own operations in water-stressed areas or disclose a commitment to respect the right to water. Moreover, it does not report a decrease in water pollution or a target to decrease water pollution. The company does not disclose its processes for managing and monitoring discharge water quality or report regularly on water pollution. Additionally, Nike does not disclose its processes for implementing preventive and corrective action plans for identified specific risks to the right to water and sanitation in its own operations.

Solid and air pollution
No evidence that Nike reduces the production of hazardous substances was found. While the company provides data on the amount of hazardous waste produced in FY21, no evidence could be found in the public domain that the company provides a comparison with FY20. No evidence that the company reduces plastic use and waste in its own operations was found. The company does not report on the amount of plastic waste generated and proportions directed from or to disposal. The company does not report on air quality parameters of emissions of harmful air pollutants. The company does not report time-bound targets to reduce air pollutants across the most material parts of its value chain.

GHG emissions
While Nike states that its scope 3 emissions target is aligned with a 1.5-degree trajectory, no evidence could be found in the public domain that the SBTi has approved the company’s scope 3 emission target.

Invasive species
Nike has not identified any activities that could lead to the introduction of invasive alien species in its own operations.

Safe, clean, healthy and sustainable environment
Nike does not disclose a commitment to respecting local communities’ right to a safe, clean, healthy and sustainable environment or to zero tolerance for acts of violence, threats, intimidation or judicial harassment committed against land and environmental rights defenders.

Indigenous Peoples’ and land rights
Nike does not disclose a commitment to respecting Indigenous Peoples’ rights or land rights of local communities.

Nike describes the process for identifying its human rights risks and impacts in specific locations or activities covering its own operations and in its business relationships.The company states that it uses both internal and external third-party audits to assess compliance with its requirements, also it monitor conditions at supplier facilities through audits and assessments by independent organizations, including the Fair Labor Association and the Better Work Programme, however, it does not describe its process for assessing its human rights risks and discloses what it considers to be its salient human rights issues. The company discloses its priority issues which includes Forced labor, Labor rights in supply chain, Health and safety in the supply chain, Employee health and safety. However, the company does not disclose the results of its assessments, which may be aggregated across its operations and locations. The company states that when a supplier’s facility is found to have serious violations of its standards, it is required to remediate all issues identified, however, it does not describe its global system to take action to prevent, mitigate or remediate its salient human rights issues, AND this includes a description of how its global system applies to its supply chain. No evidence that the company provides an example of the conclusions reached and actions taken or to be taken on at least one of its salient human rights issues as a result of assessment processes was found.The company lists the stakeholders it engages with in general on sustainability, however it is not clear whether these stakeholders are those affected by its activities and that it engages with them in the identification and assessment of its human rights risks. No evidence that the company provides examples of its engagement with stakeholders whose human rights have been or may be affected by its activities was found.

Nike has a publicly available policy statement which shows it is committed to respecting the health and safety of workers.The company has a publicly available policy statement which shows it expects its suppliers to commit to respecting the health and safety of their workers. The company discloses its pay equity definition and signs the ‘White House Equal Pay Pledge’. In addition, it sets a time-bound target for providing competitive and equitable benefits to all employees by 2025. However, it does not disclose a time-bound target for paying all workers a living wage or that it has achieved paying all workers a living wage. No evidence that the company describes how it determines a living wage for the regions where it operates was found. The company states that it requires its suppliers to develop strategic compensation capabilities that progressively meet their employees’ basic needs. Further, it states that its workers are timely paid at least the minimum wage required by local law, however, the company does not disclose if the minimum wage is enough to maintain a decent standard of living for employee and his/her family. Also, it does not describe how it works to support the payment of a living wage by its business relationships. While the company discloses the proportion of its total direct operation’s workforce covered by collective bargaining agreements, it is unclear what is the percentage of coverage at the group level. While the company states that it encourages its suppliers to respect employees’ right to freedom of association and the right to collective bargaining, it has an opportunity to describe how it works to support the practices of its suppliers in relation to those.

Nike provides a publicly available global tax strategy, which is approved by the highest governance body. No evidence that the company describes the process for identifying its bribery and corruption risks and impacts in specific locations or activities covering its own operations was found. The company has a code leadership standards in which it prohibits bribery and corruption, and it states that its supplier contracts/relationships will or could be terminated as a result of breach of the code of conduct or bribery and corruption. The company provides a publicly available policy statement or policy setting out its political activity and lobbying approach. The company has a publicly available policy statement that specifies that it only allows political contributions by exception and clearly states the criteria for making them.