Nike

I make it a habit to introduce myself to the person next to me on the plane. It doesn't have to be a lengthy conversation: I'm familiar with the anxious feeling of captivity caused by having chatty neighbors on a cross-country flight. But I've met some interesting people just by saying hello, and this recent flight was no different.

The gentleman next to me was flipping through his iPad, reading emails and scrutinizing what looked like marketing decks for shoes. I opened my own email and started to work on a presentation, and after a bit we struck up a conversation. Turned out he was a marketing VP for Nike, based out of Portland, and was headed to New York City for the unveiling of a new product (he couldn't tell me what). We started to talk about CSR and social good, and he told me about Nike's A Better World. In short, A Better World is 'serving the needs of athletes and the planet at the same time.'

Their approach spans innovations in material sourcing (Can we turn old plastic bottles into clothing and soccer turf? Yes!) to tackling global health issues like HIV/AIDS to combating dropout rates by incorporating fitness into education.

image from nike.com

The model shoe is the Pegasus 29, made from 75% recycling waste, and is lighter (and uses less materials) than many other running shoes.

Nike has emerged from supply chain sweatshop scandal of the '90s with an active and engaged response involving CSR and careful monitoring of working conditions and materials. While they may not be completely out of the woods, they spend about $10 million a year to comply with environmental and labor standards and they've just committed even more deeply.

This year, the company set new targets for sustainability throughout their business strategy. Similar to the current conversation on Breakthrough Economics, Nike CEO Mark Parker stated

"We cannot achieve our bold sustainability goals simply by delivering incremental improvements. We need to deliver innovations that rapidly evolve the way things are done at Nike, in our industry and throughout business.”

According to the statement, Nike sees the time-critical nature of some of the world's environmental and social ills and wants to achieve breakthrough shifts, not just slow change. Their new Manufacturing Index takes in a factory's labor and environmental performance plus supply chain measures of quality, cost and turnaround time. They consulted experts from NGOs to members of academia to business, students and open data advocates to develop them.

In their report, they lean heavily on the role of innovation, transparency, and collaboration: the recurring trifecta in social innovation and progress. One of the greatest areas of impact - and also potential for positive change- is in materials sourcing, which the Considered Design ethos addresses.

A short list of sustainability targets for 2015 includes:

• Product Design – improved environmental profile  
• Climate/Energy - 20 percent reduction in CO₂ emissions 
• Labor – incl. worker rights and protections, health and safety, and a “fair wage” approach
• Chemistry - toward zero discharge of hazardous chemicals across supply chain 
• Water - improved efficiency in dyeing, finishing, and footwear manufacturing 
• Waste - reduction in waste from manufacturing 
• Community - invest a minimum of 1.5 percent of pre‐tax income in communities annually.

And finally, transparency includes putting things online. At www.nikeinc.com you can explore Nike’s value chain and impact areas, check the environmental impact of various products, and explore a map of the company’s contracted manufacturing base. Check it out; just do it.