Nike aims to use 100% renewable energy by 2025 (2024)

Nike is looking to improve its sustainability credentials by focusing on its materials.

Noel Kinder, Nike’s chief sustainability officer, said that 80% of the brand’s carbon footprint comes from the sourcing of its materials and manufacturing. While Nike is one of the largest users of recycled polyester in the world, Kinder said he believes materials are where Nike can have the biggest impact. Kinder, while at COP26 in Glasgow Scotland in November 4, signed a pledge with the Renewable Energy Buyers’ Alliance to reduce its carbon footprint by 30% and use 100% renewable energy by 2025. Currently, Nike is already at 80% renewable energy, Kinder said.

For a company as big as Nike — it made $44 billion this fiscal year— small changes can have a massive impact on the environment.

“We did our first recycled garment back in 2006,” Kinder said. “It was just a single scratchy singlet for Portuguese athletes. But now our volumes are so big that our recycled polyester alone reuses more than a billion plastic bottles a year. If you pick up a random workout T-shirt in our store, most likely it has some recycled elements in it already. You start these journeys small and work your way up.”

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Kinder pointed to Space Hippie, a new shoe line Nike debuted last year that is made of 90%recycled materials, as its biggest step forward. Seventy percent of all products made by Nike have at least some recycled material in them, but Nike wants to aim higher. A big part of getting there is educating the consumer on why sustainability matters, Kinder said.

Nike tracks the percentage of recycled material used in each product (measured by weight) and then determines whether it gets a “Sustainable Materials” designation on its website.

Another material, Nike’s leather alternative called Flyleather, is also getting an update in 2022. Currently, Flyleather is made from 50% recycled leather material, but that willchange in the future. Kinder did not give additional details on what the update would entail.

At COP26, Kinder said Nike has also been focused on using the weight it has in the manufacturing space to influence its partners. For example, Nike joined 28 other brands including H&M last year to encourage the country of Vietnam, where it does some of its manufacturing, to transition to renewable energy. While Nike’s commitment to 100% renewable energy by 2025 applies only to its own offices, stores and factories, encouraging manufacturing partners to make the switch to renewable energy will help bring down the company’s overall emissions. And countless other brands that manufacture in Vietnam will also benefit.

Working across company lines, like Nike with H&M, is becoming much more common, when it comes to sustainability.

“On a day-to-day basis, you tend to see other companies as competitors,” said Caroline Danehy, co-founder of swim brand Fair Harbor, which is part of multi-brand sustainability group Mission Brand Alliance. “In sustainability, you want everyone in on it, working together and not against each other.”

Kinder said he hopes more brands across fashion will make specific commitments on specific timelines, rather than offer vague promises.

“I’m fortunate to have relationships with my peers at other companies,” Kinder said. “I know practically all of them on a first-name basis. Not to be cliche, but there is no finish line on sustainability. There’s a need to set aside competition when it comes to this. What we need to do [now] is work faster toward these goals.”

Nike aims to use 100% renewable energy by 2025 (2024)

FAQs

Does Nike aim to use 100% renewable energy by 2025? ›

Nike's attitude to challenge climate change

Blazing its way to powering owned-and-operated facilities with 100% renewable energy by 2025. While procuring energy is vital to Nike reaching its 100% renewable energy goal by or before 2025, Nike is also implementing its own initiatives to generate its own power.

What is Nike's future plan 2025? ›

-10% waste reduction per unit in manufacturing, distribution, headquarters and packaging through improved design and operational efficiency. 100% waste diverted from landfill in our extended supply chain with at least 80% recycled back into NIKE products and other goods.

What is Nike's aim for the future? ›

Nike will power owned-and-operated facilities with 100% renewable energy by 2025. Nike will reduce carbon emissions across its global supply chain by 30% by 2023, in line with the 2015 Paris Agreement. Nike diverts 99% of all footwear manufacturing waste from landfills.

Why is 100 renewable energy important? ›

THE IMPORTANCE OF RENEWABLE ENERGY

They differ from fossil fuels principally in their diversity, abundance and potential for use anywhere on the planet, but above all in that they produce neither greenhouse gases – which cause climate change – nor polluting emissions.

Does Nike use renewable energy? ›

Throughout our global workspaces, we are increasing the use of renewable energy and making spaces more efficient. In Europe, Canada and the US, renewable sources provide all energy at Nike-owned and operated facilities.

What will energy be in 2025? ›

With this new capacity, we expect solar will provide 6% of total U.S. electricity generation in 2024 and 7% in 2025, up from a 4% share in 2023. The increased generation from solar is likely to slow growth in generation from natural gas-fired power plants, even with relatively low natural gas prices in the forecast.

How does Nike protect the environment? ›

Environmental impact

Nike uses some lower-impact materials, including organic and recycled cotton. The brand has also set a deadline to eliminate hazardous chemicals by 2025 and the good news is that it's on track to meet its target.

Where will Nike be in the future? ›

Building on the momentum in digital and the rebound after the pandemic, Nike should be able to reach more than $60 billion in revenue by 2025, three years after it eclipses its $50 billion goal in 2022.

What are the goals of Nike? ›

The Nike mission statement is “to bring inspiration and innovation to every athlete in the world.” If we break this statement down, it is easy to see that the company's mission has three core components: bringing inspiration, creating innovation, and supporting every athlete in the world.

What does Nike stand for? ›

The company was named after the Greek goddess of victory, Nike (Νίκη). Apart from its own brand, Nike market its products under Nike Pro, Nike+, Nike Golf, Nike Blazers, Air Jordan, Air Max and other as well as subsidiaries including brands Jordan, Hurley Int.

What is Nike's long term goal? ›

In addition to its new 2040 goal, Nokia also announced new commitments to accelerate the decarbonization of its own operations, with a new pledge to complete decarbonization its car fleet and facilities, forming part of its interim goal to reduce its GHG emissions by 50% across Scopes 1, 2, and 3, by 2030.

What does it mean to be 100% renewable energy? ›

If a city or business (assuming it's hooked up to the U.S. electric grid) claims to be 100 percent renewable, what they are indicating is they have made financial arrangements to purchase electric generation output from renewable energy resources equal to their business or city's electric demand over a certain period ...

Which country uses 100% renewable energy? ›

Iceland is a country running on 100% renewable energy. It gets 75% of the electricity from hydropower, and 25% from geothermal. The country then takes advantage of its volcanic activity to access geothermal energy, with 87% of its hot water and heating coming from this source.

How close are we to 100% renewable energy? ›

The road maps show how 80 to 85 percent of existing energy could be replaced by wind, water, and solar by 2030, with 100 percent by 2050. The result is a substantial savings relative to the status quo baseline, in terms of energy costs, health costs, and climate costs alike.

What is the renewable energy outlook for 2025? ›

As a result of new solar projects coming on line this year, we forecast that U.S. solar power generation will grow 75% from 163 billion kilowatthours (kWh) in 2023 to 286 billion kWh in 2025. We expect that wind power generation will grow 11% from 430 billion kWh in 2023 to 476 billion kWh in 2025.

What is the Nike strategic plan for 2024? ›

Key strategies include simplifying the product portfolio, increasing automation, streamlining the organization, and leveraging scale to enhance efficiencies. Nike anticipates pre-tax restructuring charges of $400 million to $450 million, primarily in the third quarter of fiscal 2024.

How much is expected to be produced from renewable sources by 2025? ›

In the EIA's latest Short-Term Energy Outlook, released Tuesday, the agency said it expects renewable energy's overall share of electricity generation to rise to 26% by the end of 2025, while natural gas drops from 42% in 2023 to 41% in 2025.

How much energy does Nike use? ›

Nike, Inc consumed 588,537 megawatt hours (MWh) of electricity in the 2022 financial year. Nike's Retail and distribution centers accounted for the majority of this total, with consumption of 196,685 and 194,685 MWh, respectively.

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