Nike details sustainability strategy

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Nike released a two-year report on corporate responsibility Friday outlining the next phase of the sportswear giant's corporate sustainability strategy.

In a statement, Nike officials said that the corporate responsibility effort encompasses "risk management, philanthropic and compliance model to a long-term strategy focused on innovation, collaboration, transparency and advocacy to prepare the company to thrive in a sustainable economy."

Nike, which has come under fire from human rights activists for its manufacturing practices, has been working hard in recent years to remake itself as a corporate responsibility and sustainability leader. In September, Nike joined other national companies by resigning from board of the U.S. Chamber of Commerce over its climate change policies.

The report outlines five major programs under its sustainability initiative including:

1. Considered design, the manufacturer's effort to combine sustainability practices with its product design process, eliminating toxics and waste wherever possible.

2. The GreenXchange web marketplace for sharing intellectual property designed to accelerate green development.

3. A lean manufacturing and human resource management that Nike is working on with contract factories to which company officials describe as the pathway to a More lean, green, empowered and equitable supply chain."

4. The Nike Sport for Social Change program which combines sports with education programs in third-world countries.

5. Nike's work in establishing a group called the Business for Innovative Climate and Energy Policy (BICEP) which is advocating for strong U.S. climate and energy legislation. Nike's CEO signed the letter to President Obama promoted by the We Can Lead organization earlier this week.

In addition, in 2008, Nike launched a footwear energy efficiency program with five contract manufacturers. Nike’s commitment to collaboration on this project has shown excellent early results: the contract factories’ absolute CO₂ footprint was down 6 percent despite a 9 percent increase in production.

Nike's report can provide a blueprint for other companies looking to establish a strategy around sustainability. "Even for a small company, the idea of interweaving innovation and sustainability is appealing," said Michael Russo, professor of sustainable management and academic director for the Center for Sustainable Business Practices at the University of Oregon's Lundquist College of Business. " One major takeaway from Nike is the paramount importance of thinking strategically about social and environmental activities."

The full report, along with a Nike-esque extravaganza of video and data presentations, can be downloaded via their website.