  {"id":9238,"date":"2016-11-03T20:37:36","date_gmt":"2016-11-04T00:37:36","guid":{"rendered":"https:\/\/digital.hbs.edu\/platform-rctom\/submission\/nike-combats-global-warming-just-do-it-for-the-planet\/"},"modified":"2016-11-03T20:37:36","modified_gmt":"2016-11-04T00:37:36","slug":"nike-combats-global-warming-just-do-it-for-the-planet","status":"publish","type":"hck-submission","link":"https:\/\/d3.harvard.edu\/platform-rctom\/submission\/nike-combats-global-warming-just-do-it-for-the-planet\/","title":{"rendered":"NIKE combats Global Warming: \u201cJust Do It\u201d for the Planet"},"content":{"rendered":"<p>In 2015, NIKE products were produced in 700 factories, across 42 countries, by over 1 Million factory workers <strong>[1]<\/strong>. To say that they have a global impact \u2013 whether positive or negative, on natural resources \u2013 is an understatement.<\/p>\n<p>&nbsp;<\/p>\n<p>To put their impact into perspective, in 2013, 10 billion kilograms of cotton was used by the global apparel industry; this resulted in 107.5 million tons of CO2-eq \u2013 or the impact equivalent of 24 million miles driven by a passenger car (a few other conversions are below) <strong>[2]<\/strong>.<\/p>\n<div class=\"page\" title=\"Page 7\"><\/div>\n<p><a href=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/TOMChallenge_Climate.png\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-9184 aligncenter\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/TOMChallenge_Climate-300x68.png\" alt=\"tomchallenge_climate\" width=\"510\" height=\"116\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/TOMChallenge_Climate-300x68.png 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/TOMChallenge_Climate-768x175.png 768w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/TOMChallenge_Climate-600x137.png 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/TOMChallenge_Climate.png 938w\" sizes=\"auto, (max-width: 510px) 100vw, 510px\" \/><\/a><\/p>\n<p style=\"text-align: center\"><em>Equivalent impacts to the cradle-to-gate impact of one cotton t-shirt.<\/em><\/p>\n<p><a href=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/TOMChallenge_Climate2.png\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-9201 aligncenter\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/TOMChallenge_Climate2-300x89.png\" alt=\"Equivalent greenhouse gas impacts of cotton's use in the global apparel industry\" width=\"586\" height=\"174\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/TOMChallenge_Climate2-300x89.png 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/TOMChallenge_Climate2-768x228.png 768w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/TOMChallenge_Climate2-600x178.png 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/TOMChallenge_Climate2.png 910w\" sizes=\"auto, (max-width: 586px) 100vw, 586px\" \/><\/a><\/p>\n<p style=\"text-align: center\"><em>Equivalent greenhouse gas impacts of cotton&#8217;s use in the global apparel industry<\/em><\/p>\n<p>&nbsp;<\/p>\n<p>Keep in mind that this only refers to the cotton material used by manufacturing companies. In addition to the materials used, companies such as NIKE use water in their supply chain, generate manufacturing waste, and have less than optimal renewable energy as part of their owned and operate facilities.<\/p>\n<p>&nbsp;<\/p>\n<p>This leaves NIKE in a particularly vulnerable position, given the realities of Global Climate change. For example, in 2008, weather-related irregularities, like floods shut down four NIKE factories in Thailand.\u00a0Furthermore, the rise of droughts in regions that produce cotton, means less cotton is produced, the price of cotton increases, and more market volatility is introduced, which all negatively the company\u2019s bottom line. This water issue is of paramount importance; the World Economic Forum has flagged water quantity and quality as the biggest threat facing the planet over the next decade <strong>[3].<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>NIKE has not stood idle versus these climate change challenges; they\u2019ve adopted new approaches to (1) minimize the impact of changing climate conditions and (2) reduce their environmental footprint.\u00a0For example, Nike is using more synthetic material that is less dependent on weather conditions. NIKE is also \u201cusing lower-impact, high-volume materials \u2013 such as recycled polyester and certified Better Cotton (cotton grown according to the Better Cotton Initiative Standard System) \u2013 that drive energy efficiency and water efficiency\u201d <strong>[6]<\/strong>.<\/p>\n<p>&nbsp;<\/p>\n<p>A summary of NIKE\u2019s 2020 Environmental Impact goals<strong> [3]<\/strong><\/p>\n<ul>\n<li>A 10% reduction in the average environmental footprint<\/li>\n<li>Reach 100% renewable energy in owned or operated facilities through FY25 and encourage broader adoption, as part of an effort to control absolute emissions<\/li>\n<li>Eliminate footwear manufacturing waste to landfill or incineration, while continuing to reduce overall waste<\/li>\n<li>Innovate and adopt new approaches to reduce water use in the supply chain, with a 20% reduction in freshwater use in textile dyeing and finishing (l\/kg) per unit of production<\/li>\n<li>Zero discharge of hazardous chemicals<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>While these efforts have helped reduce their overall carbon footprint, there is still much room for NIKE to improve.\u00a0For example, the company\u2019s CO2 2020 emissions goals remain weak targets at best.<\/p>\n<figure id=\"attachment_9214\" aria-describedby=\"caption-attachment-9214\" style=\"width: 585px\" class=\"wp-caption aligncenter\"><a href=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/TOMChallenge_Climate3.png\"><img loading=\"lazy\" decoding=\"async\" class=\" wp-image-9214\" src=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/TOMChallenge_Climate3-300x103.png\" alt=\"NIKE Inc Revenues and Emissions\" width=\"585\" height=\"201\" srcset=\"https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/TOMChallenge_Climate3-300x103.png 300w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/TOMChallenge_Climate3-768x263.png 768w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/TOMChallenge_Climate3-600x206.png 600w, https:\/\/d3.harvard.edu\/platform-rctom\/wp-content\/uploads\/sites\/4\/2016\/11\/TOMChallenge_Climate3.png 965w\" sizes=\"auto, (max-width: 585px) 100vw, 585px\" \/><\/a><figcaption id=\"caption-attachment-9214\" class=\"wp-caption-text\">NIKE Inc Revenues and Emissions<\/figcaption><\/figure>\n<p>As evidenced by the exhibit above, very little progress has been made since 2000. Just as NIKE continues to have aggressive revenue and bottom line financial goals, the same rigorous approach should be applied to their Global Carbon Footprint commitments. As a starting point, NIKE should reduce their 2 Million mTons of CO2 Target to about 1.5 Million mTons.<\/p>\n<p>&nbsp;<\/p>\n<p>While NIKE continues to make strides in their efforts to reduce their carbon footprint, a few questions should remain top of mind for executives. How much will these efforts impact their bottom line, and how will shareholders react if NIKE decides to up the spend on these efforts? Secondly, will increased attention to environmental impact have an adverse effect on their product quality? For example, will the adoption of synthetic non-cotton materials decrease the performance aspect of NIKE\u2019s apparel?<\/p>\n<p>&nbsp;<\/p>\n<p>On the grander scheme of things, not taking steps to further combat the impacts of global warming will have a wide range of effects, the most important of which are:<\/p>\n<ul>\n<li>Rising Sea Levels<\/li>\n<li>Changing Weather Patterns and extreme weather<\/li>\n<li>Pressure on water and food<\/li>\n<li>Political and security risks<\/li>\n<li>Human Health risks<\/li>\n<li>Impact on Wildlife and Ecosystems<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>NIKE\u2019s mission statement is &#8220;To bring inspiration and innovation to every athlete in the world&#8221; <strong>[4]<\/strong>, but if NIKE and other corporations don\u2019t accelerate their efforts, there might not be a world left.<\/p>\n<p>(Words: 651)<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>[1] <a href=\"http:\/\/www.nytimes.com\/2014\/01\/24\/science\/earth\/threat-to-bottom-line-spurs-action-on-climate.html\">http:\/\/www.nytimes.com\/2014\/01\/24\/science\/earth\/threat-to-bottom-line-spurs-action-on-climate.html<\/a><\/p>\n<p>[2] Sustainable Apparel Materials | Materials Systems Laboratory Massachusetts Institute of Technology Cambridge, MA | October 7, 2015<\/p>\n<p>[3] NIKE 14\/15 Sustainable Business Report<\/p>\n<p>[4] Climate Change in 2016: Implications for Business | 性视界 Business School Press | October 14, 2016<\/p>\n<p>[5] <a href=\"http:\/\/help-en-us.nike.com\/app\/answers\/detail\/a_id\/113\/~\/nike-mission-statement\">http:\/\/help-en-us.nike.com\/app\/answers\/detail\/a_id\/113\/~\/nike-mission-statement<\/a><\/p>\n<p>[6] http:\/\/about.nike.com\/pages\/environmental-impact<\/p>\n","protected":false},"excerpt":{"rendered":"<p>NIKE efforts to reduce their global footprint<\/p>\n","protected":false},"author":2576,"featured_media":9239,"comment_status":"open","ping_status":"closed","template":"","categories":[114,1297,1419,209,158,175],"class_list":["post-9238","hck-submission","type-hck-submission","status-publish","has-post-thumbnail","hentry","category-apparel","category-apparel-industry","category-cotton","category-fitness","category-nike","category-shoes"],"connected_submission_link":"https:\/\/d3.harvard.edu\/platform-rctom\/assignment\/climate-change-challenge-2016\/","yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - 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