Sustainability Business

Performance Summary
FY 12-13

Company Portfolio

NIKE Brand designs, develops and sells high-quality athletic

performance gear and sport-inspired lifestyle products,
including footwear, apparel, equipment and accessories
Converse, Inc. designs, markets, licenses and sells casual
sneakers, apparel and accessories
Hurley International LLC designs, markets and distributes
surf and youth lifestyle footwear, apparel and accessories
Jordan Brand designs and markets premium footwear,
apparel and accessories inspired by the dynamic legacy,
vision and direct involvement of Michael Jordan
NIKE Golf designs and markets golf equipment, apparel,
balls, footwear, bags and accessories

NIKEs Sustainability Strategy

The scale of todays challenges requires

breakthrough innovations such as entirely
new materials and ways to make products.
Its goal is to hardwire sustainability into the
way they operate and drive adoption of
sustainable innovation.
They know the best way to tackle
challenges is simply to get to work. You can
only train so much. Then its game time. You
have to perform.

Targets of NIKE to MAKE TODAY

BETTER

Cut Energy
Empower Workers
Reject Toxics
Slash Water Use
Reduce Waste
Support Communities
Unleash Innovation
Revolutionize Product
Transform Manufacturing

Climate and Energy

Aim
Drive innovation and collaboration and
engage in public policy advocacy to deliver
carbon reductions across the value chain
Target
Cut energy to achieve a 20% reduction in
CO2 emissions* per unit from FY11 levels
through FY15 (in aggregate from assessed
footprint in the built environment, logistics
and footwear manufacturing)

Commitments
Manufacturer Performance
Increase contracted manufacturer participation in NIKEs
energy and carbon continuous improvement program
In FY13, 41% of participating contract footwear factories met the
minimum requirements of the NIKE Energy and Carbon Program,
representing 72% of NIKE Brand footwear volume.

Green House Gas (GHG) Footprint

Assess and report energy and CO2 footprint
Overall, the amount of energy used in NIKE's value chain fell 5%
and its greenhouse gas emissions fell 2.8% in FY13 from FY11,
compared to revenue growth of 26% over the same period. Also,
we completed a full value chain footprint assessment in FY13,
based on life cycle data from raw materials growing or extraction
through product disposal. Findings for CO2 and energy are
discussed in this section.

 Renewable Energy
Expand use of renewable energy in our built environment
(where available), including all new retail stores
In FY13, NIKE offset 46% or 59,000 mWh, of our energy
usage in NIKE Brand North America retail stores though
Green-e Certified American Wind Renewable Energy
Certificates (RECs). All 204 of NIKE Brand North America
retail stores purchased RECs in FY13, up from only 2% of
stores in FY12.
It also produces renewable energy at two key global
distribution centers. NIKE's European Logistics Center in
Laakdal, Belgium, has six wind turbines with generation
capacity of 1.5 MW each, as well as a solar installation.
Together, they generated 14.4 million kWh in FY12 and 17.6
million kWh in FY13. The NIKE China Logistics Center in
Taichang features a solar heating system that produces
renewable energy for the facility, including 97,000 kWh in
FY12, and 123,000 kWh in FY13.

Progress
By the end of FY13 NIKE achieved a per-unit CO2 reduction of 13%, in
aggregate from its targeted footprint, compared with its FY11 baseline.
Its targeted footprint includes NIKE Brand contract footwear factories,
retail facilities, inbound transportation, headquarters facilities, and
NIKE-owned or -operated high-volume distribution centers.

17%

reduction in CO2 emissions per unit in NIKE Brand

footwear manufacturing from FY11 to FY13

29% reduction in CO2 emissions per unit in inbound

transportation from FY11 to FY13

26% reduction in energy use per unit processed in major

global distribution centers from FY11 to FY13

16%

reduction in energy use per square foot in its corporate

offices from FY11 to FY13

2.8% absolute reduction in CO2 from FY11 to FY13

Community

Aim
Catalyze human potential by creating
community and business impact through a
portfolio of innovative partnerships,
advocacy and movement-making initiatives
Target
Support Communities
Invest a minimum of 1.5% of pre-tax income
in communities annually

Commitments
Access to sports

Build and expand Access to Sport agenda

NIKE collaborated with numerous organizations from diverse cultures
and disciplines to create Design to Move: a framework for action that
addresses a growing physical inactivity epidemic by providing a simple
but effective cross-sector call-to-action with just two asks:
1) Create early, positive experiences for children in sports, physical
and physically active play; and
2) Reintegrate physical activity into everyday life.

education

Employee Engagement

Globally, employees contributed $2.5 million tracked through NIKEs

giving platform to nonprofit organizations during FY12 and FY13, which
NIKE matched with an additional $2.4 million. During the past two years,
employees have reported 298,880 volunteer hours in their communities.
NIKE launched an update to the WE Portal our employee giving
mechanism in late FY13.

The Girl Effect

Through the NIKE Foundation, continue to use insight, innovation and

inspiration to equip adolescent girls in the developing world and
transform their world, so that their full potential can be realized.

Progress
1.5% pre-tax income* contributed annually
100+ organizations joined together in support

of the Designed to Move framework

$31 Million contributed by NIKE, Inc. in
support of the Girl Effect through the NIKE
Foundation in FY12/13
$2.4 Million in NIKE, Inc. matching funds for
employee charitable contributions in FY12/13
298K+ community volunteer hours logged by
NIKE, Inc. employees in FY12/13