Comparative analysis of the sustainability

interventions undertaken by Nike and

Adidas

F002 Vaishak Anil

F005 Omkar Arora
F008 Chaitanya Bhupatiraju
F020 Md Danish Iqubal
F032 Shalini Kumar
F043 Abhishek Nandan
 Company Analysis

NIKE ADIDAS

Founded in 1964 1949

Headquarters Beaverton, United States Herzogenaurach, Germany

Number of Employees 62,600 53,771

Revenue $30.6 billion 16.9 billion

Industry Analysis
 Company definition of Sustainability
We have a bold, audacious innovation ambition that
fuels our creative design process, drives innovation and
propels us into the future.
WE CALL THIS SUSTAINABLE INNOVATION
Our ambition:
We must invest in disruptive innovation to address our
impact on the environment and propel us toward a low-
carbon, closed-loop future.
Being a sustainable business is about striking
the balance between shareholder expectations
and the needs and concerns of our employees,
the workers in our supply chain and the
environment.
Our ambition:
To act as a responsible business one which is
fully committed to respecting human rights
will contribute to lasting economic success.
 What we believe in
The future will be circular: We envision a transition
from linear to circular business models and a world that
demands closed-loop products - designed with better
materials, made with fewer resources and assembled to
allow easy reuse in new products.
We are continuously working towards
becoming a more sustainable company. While
we have been in this game for a long time, we
will never stop learning and improving our
sustainability efforts. For us, it is about being
prepared, setting the right pace and having
both the drive and stamina to go the distance.
It is about being persistent, overcoming
setbacks and difficulties and never giving up on
the overall goal. Just like a true athlete never
would.
 Our Aim
Product
Double our business with half the impact - Value water

Minimize environmental footprint - Innovate materials and products

Transform manufacturing - Conserve energy

Unleash human potential People

- Empower people

- Improve health

- Inspire action
Comparison of Planet interventions
 Minimize environmental footprint

Carbon and
Waste
Energy

Water Chemistry

Understanding which resources are used in every link of The main goal is clear: we strive to continuously
the value chain allows us to minimize our environmental reduce our footprint at our own sites and all
footprint in the areas that matter most as our across our supply chain while creating the best
company grows. for the athlete
 How do we reduce emissions and energy consumption?
- Use sustainability indices to choose lower-impact
materials
- Improve the carbon footprint of key high-volume
materials such as cotton by developing new,
innovative materials with lower carbon impacts
- Examples of these materials include reduced
polyester, ColorDry-dyed polyester and BCI-licensed
cotton
- In FY15, partnered with Washington State University
to develop a comprehensive energy-efficiency
resource toolkit for dyeing and finishing facilities
- Have been utilizing renewable energy generation at
some largest distribution facilities across Belgium
and China
- Working closely with Institute of Public &
Environmental Affairs(IPE), the Beijing based NGO
which helps to improve the monitoring of supply
chain performance in China.
- Work with many business partners across various
industries to promote fair, safe and healthy working
conditions or improve our carbon footprint.
- One such partner: Maersk Line, which accounts for
Adidas inbound logistics. They constantly seek out
different innovative and commercially viable ways
to further reduce the environmental footprint.
- Maersk Line has reduced their emissions by 30%
while growing volumes by 40% since 2007. Their
aim is to reduce CO2 emissions by 60% till 2020.
 How do we reduce emissions and energy consumption?
- About 20 contract factories in both finished goods
manufacturing and materials dyeing and finishing
goods used 500,000 MWh of renewable energy and
are continuing to scale.
- Pursue Leadership in Energy and Environmental
Design (LEED) certification for the majority of new
NIKE retail stores. A typical LEED-certified NIKE store
uses 40% less lighting-related energy.
- 18% reduction in CO2 emissions per unit across
inbound logistics, footwear manufacturing and built
environment
- Thanks to Maersk Line, the average CO2 footprint of
one Adidas container shipped by Maersk Line has
been reduced by 47% from 2010 to 2015
- For 2015, the reduction is more than 25% lower
than if the shipments had been transported by an
industry average shipping line
- Achieved a reduction of carbon emissions by 30%
per square metre in the last 8 years
 Better Chemistry
Materials science and chemistry teams work to
explore and test new chemistries- such as
environmentally preferred rubber formulations that
are now being used in more than 90% of Nike
footwear
Set and implement standards for chemicals used
throughout manufacturing
Established and RSL (restricted substance list) in
2001, which sets out chemical standards for the
materials that meet or exceed regulatory or
legislative requirements from around the world
In FY 15, moved forward with a number of new
initiatives such as the Green Chemistry assessment
program that will enable to minimize risk and
optimize manufacturing
In 2015, co-hosted the public-facing
Chemical Management Summit, where
steps to improve the chemical footprint in
the supply chain were discussed
Collaborated with chemical supplier
Huntsman Textile Effects and developed
practical tools like the Chemical
Management Guideline(CMG)
CMG training was provided to over 450
people on the supplier side which helped
strengthen their overall knowledge on how
to record, understand and monitor the
chemical inventory as well as the safe
handling of the chemical products
The chemical inventory of suppliers was
recorded twice in 2015 to monitor their
progress
 Waste Management
- Use of Flyknit technology, which enables the creation
of footwear uppers directly from yarn rather than
cutting them from fabric. This technology has helped
Nike reduce waste by about 2 million pounds over the
last 6 years
- Implemented an array of efficiency initiatives that
help material vendors to recycle the scrap back into
usable materials at their own facilities
- Leveraging Nike Grind- a premium materials palette
born from a regeneration process of original materials
and products
- Transformed more than 3 billion plastic bottles into
recycled polyester for use in apparel and footwear
from 2012-2016
- In June 2015, announced the creation of the
worlds first shoe made of yarns and
filaments reclaimed and recycled from
ocean waste
- In December 2015, announced an
innovative footwear concept, a 3D-printed
ocean plastic shoe midsole, to demonstrate
how the industry can rethink design and
contribute to stopping ocean plastic
pollution
- Ended the use of microbeads in Adidas
bodycare products, which will reduce plastic
ocean pollution
- Stopped using plastic bottles at the
headquarters in Germany and are now
offering paper food boxes instead of plastic
ones
 Waste Management- Plans for the future
Achieved 6% per-unit savings over the past 5 years in
footwear, apparel and equipment manufacturing,
6.3% per-unit savings in the footwear category
To achieve the vision of a closed-loop business
model
Reduce waste generated by 5% per unit in key
operations, which include finished goods
manufacturing, corporate headquarters and
distribution centers
Reduce waste to landfill in key operations, including
distribution centers and headquarters locations
- Achieved 27% waste reduction per
employee in the last 8 years
- Working on Sport Infinity, a research project
which aims to identify and develop
innovative recyclable materials which will
enable the production of easily
customizable sporting goods that can be
fully recycled
- Developing Futurecraft Tailored Fibre, a
new sewing technique which allows new
materials such as gillnets to be combined for
use in footwear. The efficiency of this
process allows a significant amount of waste
from the traditional shoe making process to
be eradicated
 Water Management
Collaborated with material vendors to expand the
use of innovative approaches to water management,
wastewater treatment and water recycling
Included water performance in their MSI tools, thus
enabling material vendors and contract factories to
track and report their water use
Use of ColorDry technology that dyes fabric without
water. Through FY15, this facility produced 600,000
yards of fabric for our ColorDry polos, saving 20
million liters of water
Achieved 18% water usage reduction in apparel
materials and 43% in footwear manufacturing in the
last 5 years
- State-of-the-art supply chain facing
programs and innovative dyeing techniques
such as DryDye are in place
- The Green Company Initiative has led to
substantial water savings per employee at
the sites
- Defined individual and Context-based
water reduction targets for the sites taking
local water sheds into account
- Using better cotton, which requires less
water and fewer pesticides
- Achieved 28% water usage reduction in the
last 8 years
Comparison of People interventions
 How do we help our people?
Embedded the Diversity and Inclusion team within
Human Resources function over the last two years
This move helped leverage the scope and reach of
Human Resources team amplified the efforts by
integrating diversity and inclusion into all aspects of
team and talent strategy
As a result, in FY15, for the first time the percentage
of non-white Nike employee in the US rose above
50%
- In June 2015, partnered with Shift, a
leading human rights NGO and committed
as a business to incorporate the elements of
the Reporting Framework into the Human
Rights Materiality Assessments and built
this into the annual non financial reporting
- Organized a High-level stakeholder dialogue
in London in June 2015 to analyze the
human rights impact of sporting events
- Launched a new outreach program to
address Modern Day Slavery. In cooperation
with the main partners, Adidas seeks to
reach and educate other tiers in the supply
chain about the need to eradicate human
trafficking, forced labor and child labor
 How do we help our people?
Provided behavior-specific training to every new
employees to engage them as a part of the Nike
team
Online training programs are provided across the
globe with translated materials, so that every
employees will have access to training and
development opportunities
- Women Empowerment Program for those
who lost their jobs during the transition
from hand stitched to machine stitched
process in Sialkot, Pakistan
- Its objective was to improve the knowledge
and skills of the redundant female workers
to earn income and find new employment
and to help female workers to have better
opportunities in the workplace
 How do we help our people?
With an emphasis on pay for performance and
market competitiveness, Nike Compensation
Programs are designed to attract and retain top
talent, reward business results and individual
performance, while maximizing shareholder value
Recently launched a new Family Care benefit in the
US, which provides upto 8 weeks of additional paid
time off for eligible employees, enabling all new
parents to bond with their newborn or adopted
child, while also supporting employees caring for a
sick family member
- In 2015, launched the Fair Compensation
Strategy which presents the most advanced
level of work with fair compensation
- Aligned the Adidas Group Workplace
Standards with the Fair Labor Associations
(FLA) code language and refocused on
prompt remediation of pay violations in
audit corrective action plans
 How do we help our people?
Using a proactive and continuous learning model to
identify and address workplace risks, while
encouraging employees to communicate about
safety needs
- Designed an initiative for The Bowker
Factory, an important strategic group
supplier in Vietnam. The initiative:
1. Promotes and rewards productivity
and efficiency
2. improved benefits for workers
3. implemented a zero harassment
policy to encourage to respectful towards
each other at workplace
 How do we help our people?
- Enable employees to make customized choices in their
wellbeing benefits, while offering consistent
opportunities across the business, regardless of
location.
- Resources are available to meet employees individual
preferences from access to (and discounts on) fitness
facilities to on-site wellness centers, to competitive
health benefits
- Focus on three wellness areas: Health, Balance and
Move
- Talent Carousel, a program initiated to
provide a new career boost to internal
talent
- 20 participants from across the company
were placed in a new role in different
locations
- The goal was to enable them to gain new
functional skills and behaviors, learn about a
new culture, broaden their experience and
develop new networks
Integration of Social Responsibility with the
Governance model
 Corporate Responsibility and Sustainability Committee
MEMBERSHIP

The Committee will consist of at least three directors appointed by the Board from time to time, the majority of
whom are not officers or employees of NIKE or its affiliates. The Board may appoint or remove members of the
Committee at any time.

MEETINGS

The Committee will meet from time to time as determined by the Committee in conjunction with regular meetings of
the Board and at such other times determined by the Committee or the chair of the Committee.

MEMBERS

Michelle A. Peluso John R. Thompson Travis A. Knight

Director, Nike Director, Nike Director, Nike
 SEA Team
About the team

The Social and Environmental Affairs (SEA) team is a diverse group of around 70 people engineers, lawyers, HR
managers, environmental auditors and former members of non-governmental organisations (NGOs). The team is
organised into three regional teams covering Asia, the Americas and Europe, Middle East and Africa (EMEA), as well
as the Group-wide functions of Environmental Services and Community Affairs.

Organisational Chart- SEA Team

Conclusion
Thank You