Nike

Nike's Sustainable Development Goals and Initiatives

92 min

Author

James Jackiewicz

James Jackiewicz

School

Rutgers Business School

Rutgers Business School

Professor

Clifford Dias

Clifford Dias

Global Goals

3. Good Health and Well-Being 5. Gender Equality 8. Decent Work and Economic Growth 12. Responsible Consumption and Production 13. Climate Action

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Summary

Nike is implementing in all stores the “Reuse-a-Shoe” innovation along with “Nike Grind,” which is involved with three UN SDGs, Industry Innovation and infrastructure (9), Responsible Consumption and Production (12), Partnerships for the Goal (17). This innovation is a way of using existing products and resources which would otherwise get discarded as waste.

Innovation

The ‘Nike Reuse-a-shoe’ began in 1992 to establish a sustainable program that repurposes old/used shoes into future materials used in producing new shoes. Since 1992, over 28 million worn-out shoes have been recycled into a material used in production called ‘Nike Grind.’ In this part of the innovation, we can see the Industry, innovation, and infrastructure of the UN. The recycled material is used to produce new Nike products and playground equipment. Since the inception of the recycling program, Nike has since expanded the use of recycled materials into a variety of products to move towards zero carbon and zero waste.

In 1993, Nike employee Steve Potter had the idea of shredding old Nike shoes and upcycling them into a reusable material. This idea is related to responsible consumption and production by the UN. This vision grew into the Nike “Reuse-a-Shoe” recycling program with old footwear collected from consumers and transformed into “Nike Grind” high-performance material for various purposes.

The idea was communicated to the administration with the slogan RECYCLE, REUSE, REDUCE, which was a success, thus being one of the best ways to invest, generate better income and take care of the environment. In addition, we can see the other UN item, which is a partnership for the goals, since all the stakeholders agreed with the project. They accepted it because it was the same for all, take care of the planet with the Three “R’s” this allows the partnership with The National Recycling to help benefit 25 communities across the U.S.

Nike's Sustainable Development Goals and Initiatives

Inspiration

In 1990, Steve Potter, an employee at Nike's Wilsonville, Oregon distribution center, envisioned cutting old shoes into a reusable material. After sharing his idea with other employees, the name "Reuse-A-Shoe" was coined by Sherri Bryant, another Nike employee. The idea soon reached Nike co-founder Bill Bowerman who supported the program and sponsored testing for grinding old shoes. By 1993, Nike was able to grind old shoes to produce a reusable material to be used in the future production of sneakers and other Nike products. One of the very first outcomes of this recycling program was a basketball court built at the Wilsonville facility with surfaces made from Nike Grind materials.

Nike Grind is used in many flooring surfaces, including gym/weight rooms, outdoor synthetic courts, running tracks, playgrounds, other safety surfaces, indoor synthetic courts, and even indoor wood courts. The program has many safety and environmental benefits, including meeting consumer safety standards as the product is made from recycled shoes as opposed to those made with recycled tires.

Since 1990 Nike has recycled over 25 million shoes. For years Nike as long being associated with great shoes for most sports. Since 1990, the company has also started manufacturing surfaces those shoes perform on. In addition, According to their website, "concern for the environment is more than a passing trend for Nike – it's a company-wide commitment that dates back to our early years." The Nike Reuse-A-Shoe program has been active since 1993, providing consumers with a way to upcycle their old sneakers through Nike's network of stores and donation bins.


Overall impact

The overall impact of the innovation “Nike Grind” has led the company to recycle more than 30 million pairs of used shoes. This innovation implements recycled materials from used shoes and adds them back into the process of making new shoes, where they end up being purchased and worn. Nike Grind is just one of the innovations they started in their eco-conscious brand. They reused scraps of old shoes to produce new ones, recycled more than 3 billion bottles, and turned them into footwear and apparel. The end goal of Nike Grind is to create a future that involves sustainable innovation in its brand. So far, they have succeeded in doing so.

Steve Potter founded the innovative recycling program that Nike implements and improves on to this day in 1993. Since then, Nike has had an expansive network of recycling and grinding centers to help turn waste into reusable materials for future production. Nike strives to generate zero carbon and zero waste in the future. The company focuses on improving its production processes and sourcing methods while designing its products to preserve sustainable development for future generations.

Business benefit

While the movement toward sustainability may appear costly for most businesses, the transition has been successful and beneficial for Nike. The recycling programs that Nike has implemented since the 1990s have improved the sourcing of materials used in production. The donation system that Nike has implemented across all of its stores enables the company to convert waste (used sneakers) from communities into materials used for future manufacturing. The donated items that Nike receives, in addition to the scrap collected from other factories, allow Nike to save money on resources instead of purchasing. Additionally, Nike’s material commitments have helped protect the environment. Since 2016, over 40 billion liters of freshwater avoided in the manufacturing process.

One of Nike’s focuses is optimizing a sustainable value chain that operates in a circular fashion which maximizes material efficiency while managing scrap materials. This circular model, which Nike plans to implement, is designed to recapture apparel scraps and generate zero waste throughout the design, manufacturing, and distribution processes. In 2020 alone, Nike has been able to have a 10% reduction in waste generated in footwear manufacturing, distribution centers, and headquarters. However, Nike facilities still have an estimated 1.3 billion dollars of scrap wasted annually. This issue is a business opportunity that Nike seeks to tackle by innovating sustainable practices in design and manufacturing technologies. As Nike continues to have waste reduction initiatives, the company will continue to get closer to its end goal of generating zero waste throughout its entire value chain.

Social and environmental benefit

Recycling program and methods implemented by Nike help the environment and local communities. Instead of treating old and worn-out shoes like common waste and taking them to landfills, Nike helps recycle them into a material (Nike Grind) for producing new products. Since the inception of the recycling program, over 140 million pounds of recycled materials have been utilized (Nike Grind). Additionally, Nike collects unused materials and manufacturing scrap from factories globally to recycle and turn into Nike products. Nike’s efforts help alleviate massive amounts of waste from polluting the environment. This effort helps support communities by providing them with sustainable products and cleaning their environment through recycling (waste prevention).

Our contact, Jas, from the Nike Factory Store in Newark, uses the recycling program frequently. Old and worn-out sneakers from the community are donated to the store’s donation bin, collected till the end of the month, and taken to a grinding center. Then, the production utilizes the newly recycled materials in new Nike products. This donation process repeats throughout the year in collaboration with Nike’s recycling centers. Additionally, the store manager stated, “Our store also recycles cardboard boxes regularly.” Apparently, Nike strives to recycle as many aspects of its business as possible. Ultimately, Nike’s innovative efforts are directed toward producing zero carbon and zero waste.

Interview

Jas, Store Manager

Business information

Nike

Nike

Newark, NJ, Worldwide
Business Website: https://nike.com
Year Founded: 1964
Number of Employees: 10000+

Nike is a sportswear manufacturing company established in 1964. The founder of Nike is a field coach and student-athlete from the University of Oregon. The first retail store opened in 1966 and expanding the stores since then. The Nike branded shoe and logo, which we know today, was released in 1972. Nike went public in 1980 and has established retail stores in over 170 countries. The company has eight acquisitions and continues to grow in the footwear and apparel industry. Today, Nike is the largest athletic apparel company.