7. Key challenges in pursuing sustainable development for Nike

7. Key challenges in pursuing sustainable development for Nike

Since Nike is a global giant with production centres away from the headquarters, some of the key sustainability challenges for Nike based on prioritization through all the stages of the supply chain are summarized below, with actions taken by Nike to address them. (Ref. Appendix.C):

1. Worker compensation – Nike is currently working with factories to develop new compensation models, experimenting with Fair Labour Association’s compensation tool.

2. Forced labour, human trafficking and modern slavery – Nike is working with NGO’s and international labour organizations to address the risks of especially for migrant workers. forced labour,

3. Child Labour – Nike forbids the use of child labour anywhere in its supply chain and has strict standards on verifying worker’s age prior to hiring. This has led to zero child labour findings in the past 4 years. (Nike. Inc, 2019c)

4. Workplace hazards – Nike provides strict guidelines and laws that need to be met by the contractor factories which focus on fire safety, building safety, occupational health and machine safety.

5. Energy consumption – Nike is embracing the use of renewable energy sources throughout the supply chain. Implementing solar photovoltaics on factory rooftops and cutting energy consumption at retail stores are some examples.

6. Material sourcing – Nike is pioneering the use of 100% sustainable materials in footwear and are using recycled polyesters, alternative leathers, organic cottons in their apparel to decrease environmental impact.