2. Issues and challenges to sustainability and Nike’s approach

2. Issues and challenges to sustainability and Nike’s approach

Fashion, as a definition relates more to the desire to own new and a large variety of clothes, as opposed to clothing, which is a basic human need.(Iran, 2018) This desire is what encourages fast fashion, leading to overconsumption and unsustainable production methods to meet the demand. Some of the common sustainability issues related to the fashion industry include, overconsumption of water, pesticides to grow conventional cotton, water and air pollution caused due to the pesticide usage and chemicals used in the dyeing process. The long transportation links in fashion supply chain further adds to CO 2

emissions. Social challenges of the fashion industry includes the hazardous and unsafe working conditions of the suppliers, low wages along with the possibility of forced or child labour, over which the fashion brands may not have direct control. At a global level, not only is strong legislation required, but an effective enforcement method needs to be put in place to alleviate issues of exploitation, waste disposal, responsible sourcing of raw materials. These issues and challenges are especially relevant to Nike since a majority of its production happens outside the United States. There have been several reports in the past, related to unsafe and unfair working conditions at Nike’s contracted factories.(Abnett, 2016; Robertson, 2019).

Over the years, Nike has risen up to these challenges through a multi-prong approach that encompasses all three pillars of sustainability, which are elaborated in a detailed “Impact Report” released every year.(Nike. Inc, 2019c). The main target issues for the year 2020, shown below in Figure 3 are divided into the following categories: 1. Minimizing environmental footprint (Environmental), 2. Transforming manufacturing (Economic), 3. Unleash human potential (Social).

Figure 3. Nike’s priority target issues for the year 2020 Image Source: (Nike. Inc, 2019c)

Nike has rolled out projects such as achieving 100% renewable energy use in all the facilities owned or operated by Nike around the world by 2025. 99% of the waste from footwear being manufacturing is recycled and converted to energy to power their factories, thereby eliminating landfill wastes and pollution from incineration. Nike is also embracing sustainable raw material sourcing through recycling around 1 billion plastic bottles into recycled polyester and other materials to be used for producing apparel and footwear. This is evident in a 22 percentage point increase in use of sustainable materials for apparels and a 62 percentage point increase in the use of certified organic cotton for its products compared to 2014 levels (Nike. Inc, 2019c). Other environmental challenges being addressed by Nike include an innovative approach to reducing freshwater utilization during dyeing and finishing processes through investing on water risk mitigation plans for the suppliers and working towards 100% of the suppliers meeting Nike’s waste water quality and sustainable sourcing requirements. Nike has also been innovating in the area of eliminating the discharge of hazardous chemicals through 100% compliance with ZDHC Manufacturing Restricted Substances List (MRSL). At a global level, Nike monitors the company’s implementation of policies, tracking their effectiveness and future policy making through a corporate governance model that involves discussion on priority sustainability issues (e.g. Forced labour, Ethical conduct, Circular Systems Design etc.) along with decision making form the Board of Directors as well a Corporate Responsibility, Sustainability and Governance committee (Ref. Appendix. A). This ensures that the values and importance of sustainability, human rights, inclusion, and social responsibility are driven through all the levels of such a diverse and multinational corporation.