Nike is working with fewer, better contract factories that are committed to transforming their businesses beyond a foundation of compliance to be lean, green, equitable and empowering for workers. For Nike, materials and manufacturing processes pose an important influence on workers, communities and the environment, and represent the greatest potential for sustainable innovation. While in the recent years, it has continued to reduce its carbon footprint by investing in innovative products and operations , it has also set ambitious targets for itself in the near future. In 2015, it invested 1. The brand has been known for its great products and excellent marketing and advertising strategy.
Sustainability is no longer about risk management for Nike; it is about growth. How and why did it begin? On the field of play, Nike is serving the next generation of athletes by raising awareness of the physical inactivity epidemic and working with others to get kids moving, because research shows that active kids are happier, healthier and more successful. . We discovered a small Netherlands-based startup called DyeCoo Textile Systems B. For example, its Flyknit technology, which uses a single thread to knit a shoe upper, helps in preparing more custom fit and lighter shoes and generates less waste during the upper production process.
This experience began a two decade-long journey in sustainability for Nike — from reacting to these attacks, to innovating and creating new business value, to shaping the debate. And factories are showing progress — has reached a performance rating that demonstrates their commitment to valuing workers and improving environmental standards. Beyond that, sustainability is an emerging staple in boardrooms. So having made a minority investment in DyeCoo and developed a strategic partnership with them, we have been working with some of dye houses to prototype and develop a way to take this technology into the Nike supply chain first, and then out into the industry as a whole. And Nike is to encourage innovations that generate more environmentally and socially sustainable materials and fabrics. Schools and communities are receiving resources and opportunities that will excite and motivate kids to integrate sports and physical activities into their daily lives. In other words, a difference between what they say and what they do? I think you will find that sustainability will continue to rise up the corporate agenda in the future.
And we're coming up with new materials and techniques to do more with less and reduce waste. Do they say they care about these things, but when push comes to shove, they buy the product that is best for them at the best price? It is also reaching kids in various parts of the world including China to make them physically active from a young age. The company has made sound progress on many fronts, such as implementing Lean and Human Resource Management training in contract factories and reducing waste and toxics and increasing its use of environmentally preferred materials throughout Considered Design performance products. The production of these materials represents 21% of the total energy use throughout the value chain, 73% of the water consumption and 33% of the greenhouse gas emissions. However, in order to accelerate the industry's progress to a sustainable future, it's imperative that the industry works together and collaborates in order to create lasting, scalable, systemic change. Most big brands have made heavy investments into social and environmental initiatives.
As the next step on that journey Nike has set three strategic aims: minimize its environmental footprint, transform its manufacturing and unleash human potential. A great example is our. For example, materials usage impacts on costs. Nike will accelerate its efforts by expanding representation of women and people of color to start, while continuing to increase diversity of all dimensions across its business long term. Once we determined that sustainability was going to be part of our growth and innovation agenda, we began to build a competency in things like strategic investments and strategic alliances and partnerships, looking to research labs and other organizations to help us. Sources: Nike Fiscal year 2014 -2015 Sustainable Business Report Tagged With: Filed Under: I am interested in reading and writing on topics in literature, management, marketing, and more subjects. However, in the last decade, it has done a lot to manage its reputation and to reduce its impact on environment.
To do that, we would have to innovate much more than we had in the past. Indeed, Nike is differentiating itself from its competitors using the power of sustainability strategies. And shareholders benefit from the reduced cost of production and increased margins. We're holding ourselves and our partners to the strictest standards, so every worker is valued and engaged. Departments of Health and Human Services and Education to educate and inspire kids to pursue outdoor activities. At the end of the day, we need the world to move to a palette of green chemistries used for the manufacturing and making of fabrics for footwear and apparel.
Nike began its sustainability journey in a very public way in the early 1990s, when we became one of the first companies to be campaigned against around the issue of supply chain and labor rights. In the past it has courted several controversies related to child labor and ethics down its supply chain. Unleash Human Potential In addition to the commitments to workers through Manufacturing Revolution, Nike is also looking to unleash the potential of its own teams. The evidence tells us this simply does not need to be the case, and indeed, the combining of sustainability and innovation can trigger advances in both. We do that by creating groundbreaking sport innovations, by making our products more sustainably, by building a creative and diverse global team and by making a positive impact in communities where we live and work.
Here are three examples of work we are doing: — Driving innovation into our product creation process demands that we also invest in innovative technology. It took us awhile to emerge with some significant lessons learned. High Standards of Supply Chain Performance Through Business and Relational Measures Nike wanted to be more transparent and decided to be the first company in the industry to openly disclose the list of its worldwide factories manufacturing its products. We will frequently need to deliver innovations that change the way things are done today, including innovation in sustainable materials, high-efficiency and low-waste manufacturing methods, and partnerships that inspire long-term growth, profitability and sustainability. On the one hand while laws in this area have grown more stringent, on the other customers also prefer the brands with lower environmental impact. Nike aims to be ahead of the curve of mandatory regulation, energy price increases and volatility and consumer pressure.
For example, the lean manufacturing and development of more sustainable materials is directly connected to the management of constrained resources. What are some of the other keys to your sustainability success? In addition, in 2008, Nike launched a footwear energy efficiency program with five contract manufacturers. Apart from that, it is investing continuously in innovative technologies and waste reuse so as to minimise its environmental footprint. In trying to solve these problems, we came up with a several important insights that helped the company greatly. This is why sustainability standards are considered one of their key performance drivers. This is a fundamental re-writing of the old belief system in which sustainability was often cast as a cost to business, or a drag on performance. Today, Nike Grind materials are used in 71% of Nike footwear and apparel products, in everything from apparel trims to soccer kits to Flyknit yarns.