Final Paper_bussust_group 6.pdf

A Road To Sustainability for Nike, Incorporations

Group 6 Final Project Report Analysis for Business Sustainability Written For: Bayu Aji Aritejo, Ph.D. Nuraksa Makodian, S.T., M.M., M.Sc., Written By: Fany Kartika

16/392647/EK/20729

Ronald Andika P.

16/395960/EK/20932

Vincent Suryajaya G.

16/392662/EK/20744

Faculty of Economics and Business Undergraduate Students of Management Universitas Gadjah Mada Yogyakarta, Indonesia Date of Submission: 12 December 2018

Table of Content PART I Introduction………………………………………………………………………………………. 2 PART II Discussion…………………………………………………………………………………………4 2.1 Nike’s Approach to Sustainability with the Role of The Corporation………………………..4 2.2 Nike’s Approach to Sustainability with the Sustainable Frameworks………………………..7 2.3 Nike’s Approach to Sustainability with the Role of Government & NGOs………………...12 2.4 Constraints faced by the Company and How they deal with it……………………………...14 PART III Conclusion………………………………………………………………………………………21 PART IIII References………………………………………………………………………………………23

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PART I Introduction Nike Incorporations, is an American multinational and globally known company as of today. The company has its involvement upon the activities of designing, developing, manufacturing and marketing its products of footwear at the very start of the business, but then the company has diversified its products into apparel, sports accessories and equipments at their current stage. The company was founded in 1964 formerly known as ​Blue Ribbon Sports by a track field coach at the University of Oregon until the years of 1974 where its name was changed into Nike until it went public on 1980 (Nike, Inc), and as of associated the company was headquartered in Beaverton, Oregon. The very first outlet was opened in 1996 marketed its core products of Nike shoes in 1972. Following the years of the company’s success, today they have established in more than 170 countries through various strategies of diversification, acquisitions, endorsements of marketing, outsourcing materials and many listed.

Heading back to the years of 1990’s, the company Nike, Inc., has been faced with issues involving such as supply chain management, and in a response to that particular issue, the company has matured by embracing transparency, collaboration and the movement of connecting innovation and sustainability altogether to achieve positivity in creating products beneficial for athletes, businesses and the overall environment.

Due to the company’s issues and criticism over labor practices that threatened the company’s brand, the company would then took steps and embrace the origins of Corporate Responsibility at Nike. In the past, the company was well known for its critics on inhumane

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treatment, grossly underpaid workers and other issues experienced by the company. Ever since, the company has taken steps to develop to a better company through approaches such as improving working conditions by expanding independent monitoring, raise minimum age requirements, expand workers education programs, increase support of Nike’s micro-enterprise loan programs for workers and many other steps taken when teams were created to form a new corporate responsibility department.

As a result, environmental concerns moved into the mainstream and the programs expanded into product recycling, water use in the supply chain and toxic substances in the manufacturing processes. The official corporate responsibility was established in 2001 with other members including Michael Spence and Richard Donahue, each with their own titles from the dean of Stanford University and Richard was formerly known as the Vice Chairman of the COO of Nike.

Today, every individuals upon the company are working together and more willingly to take every steps possible to achieve that sustainable goals that Nike aims to become. They believe that resources are scarce and that every steps taken would contribute to an overall environmental impact upon the form of carbon footprint wastes, water usage etc.

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PART II: Discussion 2.1 Nike’s Approach to Sustainability with the Role of The Corporation: Nike, as traditionally being recognized to be involved upon those scandals has resulted the company to have high responsibility followed by the increasing demand that they keep on receiving daily. Hannah Jones, being the vice president of Sustainable Business and Innovation have established and turned the idea to curate the strategies and frameworks essentially for innovation and sustainability for future comings. Furthermore, as just like other companies, Nike themselves have experienced a limitation of resources and where prices of the world are increasing, which has posed quite a challenge for the business. In an attempt to balance the goals whilst at the same time still focusing on the company’s core capabilities, every individual within the company has their own role to contribute to sustainability and corporation themselves are one the biggest part in the universe to be responsible to limited resources of the earth.

For a particular product line of Nike products, the company would need solely 75,000 different materials and for just one sneaker itself, and Nike would need around 300 different components in the manufacturing processes (Nike, inc). Nike realized that they consume quite an amount of resources within their production resources usage, and especially the fact that their actions contribute to climate changes in two ways; 1) Nike’s had a ​heavy reliance on electricity and water supply for manufacturing​, distribution and other activities that contributes to emitting greenhouse gasses such as carbon dioxide much faster, and can affect the climate by trapping, absorbing and emitting infrared radiation in the wavelength range that has been emitted by Earth​, in which over time contributes to global warming.

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2) If climate changes occurs and infrequencies of rain and sunlight occurs due to the ​disturbance of the water cycle and the increase of global warming,​ the world would experience a shortage supply and an increase in prices due to natural disasters or a change of climate daily weather. This would further would affect every parties in the 3BL (People, Planet, Profit).

If Nike does not address these vulnerabilities, its risks of rising production costs, would then reduce the company’s margin or be passed down to the consumer, thus affecting product competitiveness against other main competitors such as Adidas, Puma, Reebok International, New Balance and many other sporting brands existing in the market either domestically or multinational form.

Nike Ambitious Goals to Achieve By 2020: “At Nike, we believe it is not enough to adapt to what the future may bring – we’re creating the future we want to see through sustainable innovation,” said Nike. Besides in restraining an excellent Corporate Social Responsibility, Nike believed that they need to go further. To build new innovation capabilities, as been said in the case that the sustainable team of Nike has successfully set up the Sustainable Business & Innovation Lab, an internal strategic partnerships group charged with hunting externally for technologies and collaborations with potential to drive sustainable value.

As an attempt for the company to become sustainable and environmentally friendly to enhance positivity to all parties of the 3BL, the company have listed out goals to be achieved by the end of 2020 such as: 1. Minimize Environmental Footprint: The company is aiming to minimize its overall environmental footprint throughout the product life cycle by seeing the carbon and energy, chemistry, water and waste to identify any

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strategies in order to use much less and better innovate new solutions to close the loop and reuse any resources as possible.

For example, about 60% of the environmental impact in a pair of Nike shoes is embedded in the materials used. It is important for the company to know the materials as it will matter the most, Nike is investing in creating a new palette of sustainable materials in a move toward closed-loop products, and has already incorporated recycled materials into 71% of its footwear and apparel products, in everything from apparel trims to soccer kits to Flyknit yarns. ​“Water efficiency- Nike also managed to reduce water use by “18% per unit in apparel materials and 43% per unit in footwear” which “far surpassed” the company’s FY2015 goals”

2. Transform Manufacturing: Throughout the company’s manufacturing revolution initiatives, Nike has put its emphasis on how to make their products through a mixture of technology, labor and sustainable innovation. Today, Nike is focused on creating technology-driven manufacturing, by being more environmentally friendly and more sustainable factories that place highly skilled, engaged and valued workers at the center with no less seeing the importance to keep the environment clean. Nike is working with fewer, better contract factories that are committed to taking this journey. Moreover, Nike is also running pilot research programs dedicated to engaging and connecting workers to healthcare, education and finance networks to make positive changes inside and outside the workplace. Here the company is focusing on the “People” part of its 3BL aspect of sustainability goals. ​“To source 100% of products from contract factories meeting the company’s definition of sustainable in the environment and to create products that deliver maximum performance with minimum impact, seeking a 10% reduction in the average environmental footprint and an increased use of more sustainable materials overall” a​ s it was stated on their website.

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3. Unleash Human Potential: Nike’s attempt is to maximize the potential of its own teams, by which the company believes that power of diversity would foster creativity and accelerates innovation to achieve their Innovation & Sustainability goals that was set up in the early 2000’s. Nike is strengthening its recruitment, promotion and retention of diverse talent throughout the world with the goal of reflecting the diversity of the consumers it serves and the communities where its employees live and work, and that the company will continue to enhance their effort to expand their women representative in the industry.

2.2 Nike’s Approach to Sustainability with the Sustainable Strategies Frameworks: Nike Water Program: According to the World Economic Forum, water quantity and quality has been identified as the biggest threat facing the planet over the next decade. Nike recognize the increasing risk of water availability globally, and they’ve been working to reduce water footprint for years. Fresh water is critical to everyone on this planet, whether for personal use, growing crops, manufacturing products and washing clothes. Due to climate change, water is expected to become increasingly scarce. Nike believe it is imperative to do their part to ensure water is available for local communities as well as the business. Nike focused on using water more efficiently, which, in part, means focusing on wastewater quality. Their moonshot goal is to reduce the water use by half through innovation and efficiency across value chain.

To reduce the water use, Nike focused on four key strategies: 1) Innovate Low-Water Materials and Technologies​:

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Nike builds the capabilities of supply chain to ensure that they use water as efficiently as possible to process the materials in the products. 2) Use Less:​ Nike build the capabilities of the supply chain to ensure they use water as efficiently as possible to process the materials in their products. 3) Reuse​: Their goal is to take water once and reuse it forever. Nike is scaling closed-loop water with their materials suppliers to eliminate water withdrawals. 4) Scale through Industry Collaboration:​ Nike is collaborating across the industry to develop new ways to grow materials like cotton more sustainably, especially in water-stressed areas. They want to drive systemic, industry-wide change, setting standards that ensure other businesses are also returning clean water to the system. Nike surpassed their water reduction target in FY15, so they set a new target for 2020 to reduce the amount of freshwater used by dyeing and finishing suppliers by 20%. In FY16, their global team of water consultants deployed the Nike Minimum Water Program. This program sets performance expectations for water stewardship, wastewater treatment data collection, water scarcity and flooding risks. It also introduced an approach to water and wastewater treatment equipment. The Minimum Water Program helps Nike find ways to be more efficient and to prepare their suppliers for water recycling. To achieve a closed-loop future for water (a future in which they reuse all the water in the system), Nike needs all their suppliers to focus on resilience, efficiency and smart management. They collaborate primarily with their

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largest materials suppliers who account for approximately 80% of material production. These suppliers have the largest water withdrawals and the greatest opportunity for adopting new technologies, so Nike working closely with them to improve their water management, wastewater treatment and recycling processes.

In addition to taking a proactive approach to helping their material vendors tackle their water and wastewater challenges, Nike helping lead the development of the Sustainable Apparel Coalition’s Higg 3.0 Facility Environment Module and the development and proliferation of the Zero Discharge of Hazardous Chemicals (ZDHC) Foundation’s wastewater guideline. Through these efforts, Nike driving change in water use and wastewater treatment across the industry. Created by the Sustainable Apparel Coalition, brands and manufacturers, the Higg Index is a suite of tools that enables brands, retailers, and facilities of all sizes to accurately measure and score a company or product’s sustainability performance.

Circular Economy and Closing Loops: A circular economy, as being widely recognized is an alternative to the traditional linear form of economy where industries uses traditional methods of “make, use, dispose”, whereas in fact the circular form of economy tries to keep resources in use for as long as possible by which the user would then be able to extract the maximum value, recover and regenerate new products from it. The closed loop concept recognizes the importance of the economy needing to work effectively at all scales – for large and small businesses, for organizations and individuals, globally and locally. Furthermore, in fact this concept of theory is not far from what has been

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implanted by Nike as of the current stage of the company in its aims to achieve their sustainability goals.

Emphasizing upon the transition to using renewable energy sources, the circular model builds economic, natural and social capital, of which it would benefit all sides from the aspects of people, planet and profit. This circular model is in fact based on three principles; Firstly, its design is aimed to wipe out waste and pollution in the environment. Secondly, it ensures that all scarce resources are kept intact and materials in use continually. Thirdly, the system helps to ensure that it is in fact a natural system with less risk of potentials of problems that will be happening in the future.

As stated earlier upon the case of Nike, to build new innovation capabilities, the Sustainability and Innovation group of individuals within the company has set up a “Sustainable Business & Innovation Lab” with its goals to in fact to close all loops materials, resources, energy and manufacturing processes to ensure that its wastes are as of the be used as maximum as possible. Furthermore, as stated upon their website that “​The Nike Circular Innovation Challenge called on designers, engineers, scientists and makers to join us in creating a more circular future​”. Nike itself has started to adopt the Type III cyclical systems where it has the greatest degree of cycling and the very least reliance on external resources, and aims for a perfect closed industrial system that would require solar energy and all the by-products resulted to be reused to optimize the goal of industrial ecology. Although it might not be possible to achieve a full 100% of re-using renewable resources yet, as there would still wastes being produced, but

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Nike is taking forward steps to ensure that they would maximize to their fullest capacity to create very little wastes.

As Nike’s attempt to further close the loops of materials and wastes, Nike Grind is a palette of premium recycled materials being used in the manufacturing processes from used footwear and manufacturing scrap. As to date of today, this palette have been incorporated into more than 1 billion square feet of running tracks, gym floors and other surfaces around the world. “In partnership with OpenIDEO, we sought to inspire the creation of products that improve the lives of the people who use them, while also reducing waste at the same time. We challenged the world to design and prototype promising new uses for Nike Grind materials” as was said by the sustainability teams of Nike.

In making sure that the company achieves a circular economy, it is no surprise that they would experience challenges along the way of the process. A critical barrier to achieving a more circular economy is the challenge of recovering pure materials from recycled products. However, as Nike created a form of cooperation in partnership with NineSigma the Material Recovery Challenge, they sought to push the boundaries of what’s possible for footwear recycling by challenging solvers to help Nike achieve higher quality material outputs from existing recycling facilities.

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2.3 Nike’s Approach to Sustainability with the Role of The Government & NGO’s: ●

Role of Government ​

What role, if any, should governments play in promoting sustainability? Governments worldwide are beginning to recognize the challenge of sustainability, and this term is being addressed in public policy discussions. Any one government cannot work in this area alone; it is imperative to work with other governments in order to address the issue in a global context.

Governments need to be able to anticipate rising demand for sustainable products and services. Governments can play a key role in aiding the transition toward more efficient, less damaging economies. Those governments that can lead in this role would be able to set the agenda for their economies, industries, and citizens.

In most developed countries, like the United States and Canada, the government is the largest employer, the largest landowner, and the largest fleet owner. The government is also the largest consumer of energy and has the largest impact on the environment. It stands to reason that governments should incorporate sustainability principles in their internal operations.

In developing countries, the role of the government assumes even greater significance. Within the realm of sustainability, the governments ought to encourage companies to address the needs of the world’s entire population.

According to a KPMG report, the government has four distinct roles in addressing sustainability concerns. These roles are as follows: 1. Policy development 2. Regulation 3. Facilitation 4. Internal sustainability management

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● Role of NGOs The term ​NGO d​ escribes a range of groups and organizations from watchdog activist groups and aid agencies to development and policy organizations. Usually, NGOs are defined as organizations that pursue a public interest agenda, rather than commercial interests.

It is believed that the first international NGO was probably the Anti- Slavery Society, formed in 1839. However, the term ​NGO o​ riginated at the end of World War II when the United Nations sought to distinguish between private organizations and intergovernmental specialized agencies. NGOs are a complex mixture comprised of alliances and rivalries; businesses and charities; conservatives and radicals. The funding comes from various sources, and though NGOs are usually nonprofit organizations, there are some that operate for profit.

Even though NGOs are highly diverse organizations, the one common goal is that they are not focused on short-term targets, and, hence, they devote themselves to long-term issues like climate change, malaria prevention, or human rights. In addition, public surveys state that NGOs often have public trust, which makes them a useful proxy for societal concerns. Next, we will discuss four important roles of NGOs. These roles are :

(1) social development, (2) sustainable community development, (3) sustainable development, and (4) sustainable consumption.

In Nike organization this is some of the roles of NGOs :

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1.​ ​ ​Greening the Supply of Products and Services NGOs are developing or designing products that will minimize the environmental impacts of consumption. The consumer is simply offered an alternative of more sustainable consumption, and this choice is deemed empowering. For example, Nike is engaging the retail sector to offer more sustainable green products. It also cooperates with the design of eco-friendly product. This campaign has been successful in increasing demand for organic products in Switzerland.

2.​ ​ ​Forming Extensive Networks of Different Stakeholders NGOs enter into collaborations with other NGOs and businesses to highlight issues and jointly look for solutions. For example, the Green Purchasing Network (GPN) promotes green purchasing for Nike shoes among Nike consumers, businesses, and other governmental organizations in Japan. The aims of this are to reduce the environmental and social impacts of apparel and footwear products sold around the world by establishing an industry-wide index for measuring and evaluating apparel and footwear product sustainability.

2.4 Constraints Faced by the Corporation and how did Nike deal with it: The essential issue looked by Nike Inc. is expanded monetary misfortunes in the course of the most recent couple of years. The expansion is credited to different factors, for example, poor budgetary administration. Rivalry has likewise assumed an exceptionally critical job in the expanded dimension of money related misfortune at Nike. Because of the high aggressive dimensions, the business attempts concentrated showcasing among different exercises with the point of winning back its piece of the pie. These showcasing exercises mean high uses that eat into the business' overall revenues bringing about misfortunes in the organization.

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What's more, abnormal amounts of rivalry additionally result in value wars in the market that influence the business productivity. Brand control has likewise assumed a huge job in budgetary misfortunes in the organization due to declined deals as the business is never again beneficial. The issue of the expanded dimension of money related misfortune shows itself through three issues specifically elevated amounts of use inside the company, large amounts of rivalry inside the market and decrease in Nike's image influence.

The three problems are: 1.

High expenditure levels within the corporation.

2.

High Levels of Competition

3.

Decline in the corporation’s brand power.

Recommendations and Implementation Plans Nike, in the past were tremendously recognized as one of the corporations connected with a continuous issues ranging from labor practices to unsustainable working practices on site of the company in the year of 1990s. Despite the accusation, Nike believed that they have done nothing wrong to disbenefit any individual within the workplaces and that working conditions should not only merely being based on the U.S standards, but more into complying upon the rules in the subsidiary markets worldwide. However, this view does not stand in accordance with the external media and has led the company to hire Maria Eitel to be Nike’s very first president of the company’s corporate responsibility, by which together they all worked together on structuring and reconfiguring out frameworks and strategies to address the negative issues that the company have had in the past, and also to better prepare for any particular accusation in the future.

Being the fact that Nike was one of the corporation to enhance Corporate Responsibilities Programs, they were one of the successes to be able to create a link between the company and the consumers. Nike were able to translate the past issues by innovating new strategies and

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frameworks to enhance the overall company’s success. Today, Nike are taking a far tremendous step forward to be more responsible towards the environment as it was said before by creating the “2020 Goals” and there has been a transparency towards their progress in public. However, despite the successes that the company can see towards CSR programs, there lies several other issues and challenges as of today by the company and are listed below.

​Problem Statement 1: High Levels of Expenditure within the Corporation

Recommendation : Inventory Management The partnership brings about a lot of costs during the time spent procurement and capacity and capacity of stock. This is on the grounds that Nike is an assembling brand subsequently utilizes a lot of stock in the day by day producing process. The procedure of stock administration will guarantee that costs identified with the procedure of stock administration are essentially made do with immaterial expenses being disposed of. The procedure of stock administration will include changes in the procedures identified with stock administration. The organization should calibrate their stock with the goal that they stock products for a brief span before being utilized in the assembling procedure or sold. As a business, it is urgent to realize the products should be loaded relying upon volume, accessible money, deals gauges, and the abilities of the provider.

Moreover, organizations that re-move merchandise can likewise utilize buy arrange financing when financing immense deals that outperform the capacities of their income.

Implementation 1: Standard Management A few pointless costs in the business are credited to poor administration. Therefore, choices identified with the administration of the association are not given due consideration. The execution of successful administration will come in guaranteeing powerful administration will come in encouraging the usage of practical choices that will come in overseeing costs in a viable and effective way.

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Setting up quality administration procedures can be unchallenging as sketching out a rundown which gives each procedure laborers are required to use amid assessing the merchandise they get. When each representative is going for the comparative destinations, quality will develop. In the event that wears can't accomplish association goals, they know to return them to providers. This stock control phenomenal technique guarantees no superfluous development in stock dimensions, and specialists won't give buyers unsatisfactory stock.

Implementation 2: Optimization of Inventory ​

Good stock control is comprehension of stock and controlling it fantastically. At the point when amazing stock strategies are actualized, the association would now be able to do the advancement of stock amount to improve productivity as well as accomplish consistently changing shopper prerequisites. In the ongoing commercial center, shoppers won't postpone to socially share their dreadful frequencies when their prerequisites aren't met or simply searching for an alternate association.

Enhancement techniques are critical to an association's financial development. Carelessness to embrace stock great strategies can prompt losing the organization's customers, cuts in stock, and at last specialist decreases. Different issues can be maintained a strategic distance from when stock control best techniques are started at beginning periods. Taking Stock administration as a priority can abstain from glaring wasteful aspects on the execution and help exact methodology for tomorrow.

Problem Statement 2: High levels of Competition within in the market Recommendation : Identification of New Niche markets. Since the present markets possessed by Nike are immersed bringing about unreasonable rivalry levels that are nearly dispensing with Nike from the market, Nike ought to distinguish and contact new target advertises in an offer to make tracks in an opposite direction from soaked

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markets. Connecting with new market fragments will empower the business to grow its piece of the overall industry thus achieve upper hands in the market.

Exchanging to contact a vast piece of the overall industry can develop the client base and spread the hazard. Put into thought whether the organization can figure out how to move through the web or universally, e.g., There are a few gatherings investigated previously and they may can keen on organizations offer ?However,it is prudent not to dawdle promoting to people that aren't in premium.

Implementation 1: Reaching out to customer needs and wants People are hesitant to manage organizations which don't think of creative thoughts and brands. Advancement makes energy the commercial center and clients like fervor. An organization ought to contribute their opportunity to ponder the sort of response a brand, administration will get from general society at its new propelling.

Advancement gives the commercial center something energizing to discuss. Notices through the informal exchange advances the organization, services,and marks quicker. The purchaser dependably get energized when they discovered something new and intriguing refresh in the item, so it important to actualize the high caliber and new highlights makes them to tie with product.If organization can figure out how to turned into a pacesster of the business, whatever remains of organizations will accept it as a searchlight and following are some viable usage

Implementation 2: Defining Your Brand Brands and associations are ordinarily unique, and additionally clients, along these lines there is the prerequisite for marking. What does the organization rely on? What's diverse about the company in complexity to different organizations in a similar industry? What does the

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organization need to be known for in the commercial center? What is the forte of the organization?

With presentation and rise of new rivalry, it is prudent to be set up to forestall loss of some piece of the pie. Along these lines, the fantastic arrangement is to layout the brand and as often as possible characterize its Interesting Moving Recommendation (USP). The surfacing of rivalry transparently separates the solid and the powerless. It is the organizations which don't evidently represent something which for the most part are tested amid times of firm rivalry. On the off chance that organization does not represent something, it will succumb to anything.

To remain focused, association must stay particular. There must be an energizing thing in organization which influences the customers to build up a misgiving of adjusting to the brand rivalries.

Problem Statement 3: Decline in Nike’s brand power Recommendation : Perform a Market Research An item in limbo is likely confronting this issue: The item highlights and credits are not speaking to the purchaser. On the off chance that an item's one of a kind incentive and center advantages are not particular enough to separate it from contenders, at that point it has neglected to persuade its objective market of its advantages.

The answer for this issue is to perform upstream statistical surveying and recognize the progressive system of traits as far as both execution desires and the best related informing and situating utilizing discrete decision examination with subjective input. A definitive objective of statistical surveying is to comprehend client needs and to create items which take care of the most dire client issues. This keeps away from the feared item limbo. Conjoint examination is one approach to do that.

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Implementation 1: Market Testing Any procedures or methods that a specialist assesses the generation, prosperity, standard, and consistency of a brand with settled characteristics. Subsequent to doing the examination about the item going to be propelled, it is shrewd to test it to prospect its prosperity. Actualizing this will guarantee that the item is certain its disparities which will influence the clients/clients.

Organizations are constantly committed to testing the item energetically for the enhancement of item quality to rule the aggressive items from different contenders in the market. Likewise builds up the unrivaled review item may make the top notch cost over the others. This procedure influences the item to persevere in promoting over the purchaser taste develops.

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PART III Conclusion Nike has long believed that sustainability plays a critical role at the company. It is a powerful engine for their future growth. Nike has spent more than a decade embedding sustainability across the company to help spark creativity and innovation to drive new solutions that deliver for athletes, the business and the world.

Setting impact reduction and improvement targets continues to be a key foundation element in Nike’s mid-term strategy. The 2020 targets demonstrate Nike’s commitment to setting aggressive efficiency measures across the entire value chain. They’re based on sound science and data, and supported with robust controls and governance to monitor progress. Every Nike business function is accountable for delivering against the sustainability goals. At the same time, Nike aggressively investing in a portfolio of sustainable innovations to take beyond 2020 and on to their moon shot of doubling their business with half the impact. In order to achieve this, and propel themselves into a low-carbon growth economy, Nike know product and business model innovation will be critical.

Nike 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. This will involve up-front product design, with materials reclaimed throughout the manufacturing process and at the end of a product’s life. Nike is re-imagining waste streams as value streams, and already designers have access to a palette of more than 29 high-performance materials made from their manufacturing waste. Right now, materials left over from producing Nike shoes are being reborn as tennis courts, athletic tracks and new shoes.

Nike also focused on delivering the conditions for system change at scale. They are dedicated to catalyzing and incentivizing change that will help unlock access to flows of capital and level the playing field on standards across the industry. It is clear that no single company,

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organization or government has the ability to tackle the sustainable innovation challenge alone. It is an opportunity to think and act differently together. It needs collaboration among industry, civil society, policymakers, workers and business to deliver the financial, science and technology resources and capabilities that will accelerate system-level change.

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PART IV References ● Paine, Lynn S., Hsieh, Nien He., Adamsons, Lara., (2013, June 17). ​‘Governance and Sustainability at Nike (A)’​. ● Kaye, Leon. (2011, October 13). ‘​Nike’s Road to Integrating Innovation and Sustainability​’. Retrieved from www.triplepundit.com/2011/10/nikes-road-integrating-innovation-sustainability/ ● Reports, Nike (2017, January). ​‘Nike Sustainable Reports’​. Retrieved from www.sustainability.nike.com/reports ● Nike (2018, January). ‘Circular Innovation Challenge’. Retrieved from https://sustainability.nike.com/circular-innovation-challenge ● Meyers, Kate. (2016, May 11). ​‘Nike, Inc. Sets Bold Vision and Targets for 2020: Demonstrating Sustainable Innovation is a Powerful Engine for Growth and Catalyst for Change’.​ Retrieved from www.businesswire.com/news/home/20160511005885/en/NIKE-Sets-Bold-Vision-Target s-2020 ● Kleinfield, Hannah. (2016, November 2). ​‘Nike’s Path to Sustainability: Nike is Implementing a Sustainability Plan with Ambitious Goals to Achieve by 2020’.​ Retrieved from ​https://rctom.hbs.org/submission/nikes-path-to-sustainability/

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