Nike's Sustainability Offerings and Innovation Analysis Report

This report provides a comprehensive analysis of Nike's sustainability initiatives, examining their integration of innovation and eco-friendly practices. It begins with a reflection on the importance of innovation for organizational sustainability and explores Nike's sustainability offerings, including product design, material choices, and manufacturing processes. The report delves into relevant literature, highlighting Nike's use of recycled materials, water conservation, and reduction of emissions. It identifies Nike's key stakeholders and analyzes their sustainability benchmarks, presenting data on emissions, water usage, and waste reduction. The report offers recommendations for managers and concludes with an overview of Nike's commitment to sustainability, supported by references and an appendix.

Innovation
and The
Sustainable
Organisation

Contents
PART 1............................................................................................................................................3
Section # 1: Reflection...........................................................................................................3
PART 2............................................................................................................................................4
Section # 2: Nike and its Sustainability offerings..................................................................4
Section # 3: Literature............................................................................................................5
Section # 4: Sustainability stakeholders of Nike....................................................................7
Section # 5: Sustainability Benchmarks.................................................................................7
Section # 6: Recommendations for managers......................................................................10
Section # 7: Conclusion........................................................................................................10
Section # 8: References........................................................................................................10
Section # 9: Appendix..........................................................................................................12

PART 1
Section # 1: Reflection
In today's time innovation is very necessary for an organization in order to sustain for a
long term at a marketplace. This is so because customers are more attracted towards new,
innovative and creative products which are eco friendly in nature. I attend seminar related to this
topic that help me in enhancing my knowledge and understanding related to respective topic.
Through this I get to know that an organisation can conduct innovation in five ways i.e. by
launching new products, method of production, source of supply, new market and business
model. Moreover in session I found that World Commission Environment develop a report
which is named as Brundtland. That include factors that must be consider by organization if they
are looking forward themselves with a expand business. So factors or elements that they need to
focus are technology, business strategies, sustainability, innovative process and many more
approaches.
In addition to this, I also understand that, report also contain information of past at that time
technology was not must effective that it will impacted upon business functions and operations.
But now after attending session I can understand as well as say that technological sector has
developing itself at high rate that help companies in targeting much more customers and also
help in offering new and innovative products and services. This technological impact will
directly positively affect different factors such as bargaining, availability of resources, values,
beliefs, products and service type, way of thinking of an individual and so on. If a company want
sustainability then they needs to conduct market evaluation and develop products and services
according to various elements such as need, demand of customers, latest trends and technology
etc. Through this analysis company may use various methods or techniques such as porter’s five
force model and many.
Along with this I also understand that for attainment of goal and objective of a company,
they need effective and potential customers. This is so because customers are the one who
purchase products and service of company. It will also help them in attaining or enhancing
competitive advancement at a market place. A firm also adopt change which occurs at market
and it could be done through two diverse techniques and method which are innovation as well as
invention. But according to me innovation is most appropriate method which should be grabbing

by organization so that they can improve their process and develop innovative products and
services for customers which attract them. In addition to this, I also evaluate that when an
organization is gaining profit at high level it is also beneficial for economy of country. Along
with this it is necessary for a company to develop or design their products and services by
considering economy condition of customer, country and themselves.
PART 2
Section # 2: Nike and its Sustainability offerings
Nike is American corporation which is offering its products at worldwide level and they
are operating its business in apparel, accessories and sports equipments. This company is formed
in year 1964 by Bill Bowerman and Phil Knight and its headquarter is situated in Washington
country, Oregon, United State (Jaeger-Erben, Rückert-John and Schäfer, 2015). They offer
variety of products such as athletic footwear and apparel, athletic and recreational products as
well as sports equipments. There are approx 73,000 employees are working in respective
company at world wide level. The slogan or tag line of respective company is “Just do it” and
now they introduce their new slogan which is “Believe in something, even if it means sacrificing
everything.”
Nike offer variety of products range for men, women, boys and girls. Along with this
they also offer option of customize products according to requirement. For men they offer
numbers of shoes types like sneakers, cricket, lifestyle, running, and so on; clothing like tops, t
shirts, jackets, tracksuits etc.. As a collection of women they offer same range of sports shoes,
lifestyle shoes, running shoes; variety of clothing such as hoodies, sweatshirts, sports bras, top
and many more. They also offer sports and daily clothing products for kids, boys and girls.
Along with this, respective company also provide facility of customize products accordingly
such as selecting colour of shoes, design and sole type and many others.
Nike is not always have stellar record but it had made or adopt lot of changes which
made them a sustain corporate. According to Morgan Stanley's list of 2015 Nike ranked as
topped company for sustaining as a clothing and footwear brand. The major reason of this is that
they strongly disclose their supply chain as well as production procedure (Nedergaard and Gyrd-
Jones, 2013). Along with this it will also help respective company designers to develop green
choice through an application. By which they able to compare environmental footprint of various

fabrics such as patagonia. They also redesign their boxes in order to reduce use of chemical and
make eco friendly boxes. Moreover, respective company also developing partnership with
NASA and other government agencies in order to adopt innovation in respect of chemistry to
green processing of converting raw materials into finished goods.
Section # 3: Literature
Article 1:
As per the perception of Jorna, 2017, on the article, yarn, sole and basketball offer by Nike are
developed through transforming scraps and plastics bottles such as Nike Grind (Nike's Latest
Sustainable Innovations and Environmental Impact, 2019). Along with this approx 75 percent of
Nike product like shoes and apparel include some recycled material which makes products eco
friendly.
Article 2:
According to the perception of Tukker and et.al., 2017, on the article, from year 2010 Nike
diverted three billions plastic bottles from landfills and convert them into recycled polyester in
order to manufacture products such as Nike Vapor football Kits along with Aero swift (Top
Things to Know About Sustainable Innovation at Nike, 2019). They also use ColorDry which
required zero percent water in manufacturing process.
Article 3:
Illustration 1: Nike Sustainability Overview
(Source: Nike Sustainability Overview, 2019)

As per the perception of De Medeiros, Ribeiro And Cortimiglia, 2014, on the article, according
to Sustainable Business Performance Summary Nike adopt a lifecycle judgment by comparing
three diverse footwear styles within period of five-year which shows reductions in energy (-24
percent), emissions (-21 percent), water (-13 percent), waste (-35 percent), and chemicals (-20
percent) and this is possible due to change in production procedure (Nike's Sustainability Report
Shows Company Reducing Environmental Impact while Continuing to Grow, 2019).
Article 4:
As per mentioned in article, according to Hannah Jones who is a innovation accelerator and chief
sustainability officer of Nike that they have made effective presence in sustainability and
strategy which develop innovation as well as creativity in the area of sustainable material or
method of manufacturing (SUSTAINABLE STRIDES AT NIKE, INC., 2015).
Article 5:
According to article written by Lucy Jones, Nike is going to introduce new innovation into
sustainability, says chief operating officer of respective company Eric Sprunk and they also
describe that they have just created a new innovative super material by using recyclable natural
leather fibre ("There is no innovation without sustainability" says Nike's chief operating officer,
2018). That will be used in manufacturing of bestselling trainers such as Air Jordan and Air Max.
Article 6:
As per the view point of Halkos, 2015, on the article, Nike’s push them in order to get
sustainability in last few years which develop or lead them a path of innovation of mindful
technique that helps in driving down negative impact like pollution or wastage on the world (The
Nike Sustainability Collection Presents New Ways To Reduce Your Carbon Footprint, 2019).
Such as most sustainable material of respective company are like Fly leather which is
manufacture by utilizing its recycled fiber.
Article 7:
As the view point of Fabian Gorsler, Nike is one of the most know company in respect of
sustainability and using green method. Such as they launch three sneakers with the feature of
reworked canvas which upper colour is natural produce by plants (Nike’s “Plant Color
Collection” Does Sustainability Without Sacrificing Style, 2019). These products are mainly for
women and range is named as “Plant color collection”.
Article 8:

As the view point of Shoe Cen, Nike introduce its summer collection for women which is
sneaker painted with natural color. Along with this it is also ladled a “Plant colour collection”
(NIKE ANNOUNCES A NEW SUSTAINABLE COLLECTION FEATURING LEFTOVER
YARN, PLANT DYE & MORE, 2019). Through this collection they are gaining high number of
market shares.
Section # 4: Sustainability stakeholders of Nike
A stakeholder refers to a person or group of person which can affect or be affected through
actions, objectives and policies of an organization. There are various types of stakeholders
present in a company such as creditors, customers, directors, employees, government, suppliers,
unions, and so on. These stakeholders are also being affected by corporate social responsibilities
of a company. Some major stakeholders of Nike are explaining below:-
 Customers: In organization customers are most essential things because business exists
for their sake. It is a customer who helps a company in keeping running its business for a
long time. If a company conduct CSR activities then they able to develop appropriate
environment as well as society which are effective of their customer (Mežinska, Lapiņa
and Mazais, 2015). Along with this it also helps a firm in attracting customers and
retaining them for a long time.
 Owner: The owner of business is always considering as first stakeholders. They are the
one who contribute their capital or equity in order to run business in effective and proper
manner. There is positive impact of corporate social responsibility on owner of a
company. This is so because by conducting CSR activities owner able to enhance its
goodwill that leads to increment in profitability ratio as well as market shares (Zarei,
Mohammadian and Ghasemi, 2016).
Section # 5: Sustainability Benchmarks
In order to evaluate performance an organization develops benchmarks so that they can
compare their past performance with the current one. This will help them in developing
strategies and plans for future. Evaluation of benchmark develops by Nike in order to analysis its
sustainability is given below with the help of two graphs:-

Form above given graph it can be analysis that Nike develops various strategies and plans
in order to sustain in market for a long time by producing eco friendly products. Nike has
dedicated themselves to reduction of 20 percent in CO2 emissions per unit, a 15 percent
development in use of water per unit of production and 10 percent fall in waste which is
generated from manufacturing. These all changes occur in respective company form last
financial year 2015 that is measured against a financial year 2011 as well as this is based on
respective company 2010-2011 sustainability report (Nike Sustainability Report: Aims for 20%
CO2, 15% Water, 10% Waste Cuts by 2015, 2019). Along with this they also develop strategy in
order to reduce or avoid use of process which generate carbon in an environment and develop
various diseases. Moreover form financial year 2012 respective company are more focused on
developing stores which use renewable energy in manufacturing or production process. For this
Nike also get various appraisal awards as compare to their competitors. In addition to this they
are also working on reducing use of water and use water in appropriate activities. So that they
able to reduce wastage of water. According to graph it can be analysis that company is setting
benchmarks in every field in order to reduce wastage. Through this they able to gain high
competitive advancement as well as they also able to attract more and more customers.

From above given graph it can be analysis that now a day each and every company try to
adopt new technology which is eco friendly, for which they are developing numbers of strategies
as well as plans. These all factors or process are adopted by companies because level of pollution
get increased that develop issues for society. In given data there is comparison is done between
five famous companies i.e. Nike, Adidas, Puma, Lulu lemon and Under Armour. This
comparison is based on major four factors which are energy and climate change, waste and
recycling, water as well as land use and biodiversity (P U M A , A D I D A S , U N D E R
A R M O U R – W H O H A S T H E B E S T S U S T A I N A B I L I T Y ? , 2 0 1 9 ). As an
outcome it can be evaluate that Nike is more focusing on all these factors so that they can reduce
environment problems as well as data of Puma is also almost same as compare to Nike. Whereas
Adidas is more focused on energy and climate change, waste and recycling and water which is
same as Lulu lemon. But Lulu Lemon is focusing less on these activities as compare to Adidas.
But Under Armour is only developing strategies for improving energy and climate change and
waste. So by comparing all this it can be analysis that Nike is more responsible company which
take initiative for improving environment in effective and appropriate way.

Section # 6: Recommendations for managers
Nike is one of the leading brands which serve their products in worldwide level as well as
they are also considered in one of the top companies who use waste material for manufacturing
their products. Moreover, by analysing each and every situation and aspects of Nike, there are
factors which can be recommended which help them in operating more appropriate way. Such as
like they introduce plant color shoes for women they must use this technique for their all
products so that it will be skin and environment friendly. Along with this they must, they should
also come up with new and attractive products on regular basis which encourage customers to
linked with company.
Section # 7: Conclusion
Form the above discussed point it can be conclude as well as evaluate that in today’s time
customers or society are more attracted towards green products or process. This is so because
these are environment friendly and produce minimum or no wastage which harm environment.
Along with this these products are reusable so it is more liked by customers now a day. There are
various companies which adopt variety of method or techniques in order to make them
sustainable for long time. Such as Nike produce shoes form waste material like bottles, use plan
color for colouring shoes and many more.
Section # 8: References
Books and Journals
Jaeger-Erben, M., Rückert-John, J. and Schäfer, M., 2015. Sustainable consumption through
social innovation: a typology of innovations for sustainable consumption
practices. Journal of Cleaner Production. 108. pp.784-798.
Nedergaard, N. and Gyrd-Jones, R., 2013. Sustainable brand-based innovation: The role of
corporate brands in driving sustainable innovation. Journal of brand
management. 20(9). pp.762-778.
Jorna, R. ed., 2017. Sustainable innovation: The organisational, human and knowledge
dimension. Routledge.
Tukker, A., and et.al., 2017. System innovation for sustainability 1: Perspectives on radical
changes to sustainable consumption and production. Routledge.
De Medeiros, J.F., Ribeiro, J.L.D. and Cortimiglia, M.N., 2014. Success factors for
environmentally sustainable product innovation: a systematic literature review. Journal
of Cleaner Production. 65. pp.76-86.
Halkos, G.E., 2015. Climate change actions for sustainable development. International Journal
of Innovation and Sustainable Development. 9(2). pp.118-136.

Mežinska, I., Lapiņa, I. and Mazais, J., 2015. Integrated management systems towards
sustainable and socially responsible organisation. Total Quality Management &
Business Excellence. 26(5-6). pp.469-481.
Zarei, M., Mohammadian, A. and Ghasemi, R., 2016. Internet of things in industries: A survey
for sustainable development. International Journal of Innovation and Sustainable
Development. 10(4). pp.419-442.
Gopalakrishnan, K., and at.al., 2012. Sustainable supply chain management: A case study of
British Aerospace (BAe) Systems. International Journal of Production
Economics. 140(1). pp.193-203.
Fam, D.M. and Mitchell, C.A., 2013. Sustainable innovation in wastewater management: lessons
for nutrient recovery and reuse. Local Environment. 18(7). pp.769-780.
Samson, D. and Gloet, M., 2014. Innovation capability in Australian manufacturing
organisations: an exploratory study. International Journal of Production
Research. 52(21). pp.6448-6466.
Anttonen, M., Halme, M., Houtbeckers, E. and Nurkka, J., 2013. The other side of sustainable
innovation: is there a demand for innovative services?. Journal of cleaner
production, 45, pp.89-103.
Online
10 global companies that are environmentally friendly. 2019. [Online]. Available
through<https://www.virgin.com/virgin-unite/10-global-companies-are-
environmentally-friendly>.
Nike Sustainability Overview. 2019. [Online]. Available
through<https://www.slideshare.net/KellyBowker/nike-makb>.
Nike's Latest Sustainable Innovations and Environmental Impact. 2019. [Online]. Available
through<https://news.nike.com/news/sustainable-innovation-air-bag-manufacture>.
Top Things to Know About Sustainable Innovation at Nike. 2019. [Online]. Available
through<https://news.nike.com/news/sustainable-innovation>.
Nike's Sustainability Report Shows Company Reducing Environmental Impact while Continuing
to Grow. 2019. [Online]. Available through<https://news.nike.com/news/nike-s-
sustainability-report-shows-company-reducing-environmental-impact-while-
continuing-to-grow>.
SUSTAINABLE STRIDES AT NIKE, INC.. 2015. [Online]. Available
through<https://www.hbs.edu/news/articles/Pages/nike-sustainability-hbs.aspx>.
"There is no innovation without sustainability" says Nike's chief operating officer. 2018.
[Online]. Available through<https://www.dezeen.com/2018/06/11/nike-eric-sprunk-
interview-sustainability-flyleather-recyclable-leather/>.
The Nike Sustainability Collection Presents New Ways To Reduce Your Carbon Footprint. 2019.
[Online]. Available through<https://sneakernews.com/2019/03/11/nike-sustainability-
footwear-preview-summer-2019-release-info/>.
Nike’s “Plant Color Collection” Does Sustainability Without Sacrificing Style. 2019. [Online].
Available through<https://www.highsnobiety.com/p/nike-plant-color-collection-
release-date-price/>.
NIKE ANNOUNCES A NEW SUSTAINABLE COLLECTION FEATURING LEFTOVER YARN,
PLANT DYE & MORE. 2019. [Online]. Available
through<http://justfreshkicks.com/nike-sustainability-collection-2019/>.

Nike Sustainability Report: Aims for 20% CO2, 15% Water, 10% Waste Cuts by 2015. 2019.
[Online]. Available through<https://www.environmentalleader.com/2012/05/nike-
sustainability-report-aims-for-20-co2-15-water-10-waste-cuts-by-2015/>.
P U M A , A D I D A S , U N D E R A R M O U R – W H O H A S T H E B E S T
S U S T A I N A B I L I T Y ? . 2 0 1 9 . [ O n l i n e ] . A v a i l a b l e
t h r o u g h < h t t p : / / w w w . s u s t a i n a b i l i t y c o n s u l t i n g . c o m / b l o g / 2 0 1 4 / 1 0 / 2 3 /
p u m a - a d i d a s - u n d e r - a r m o u r - w h o - h a s - t h e - b e s t - s u s t a i n a b i l i t y > .
Section # 9: Appendix
1. The Case of Energy
In today’s time use of technology get increased as compare to decade time. People in past
time rarely know or use technology but now a day use of technology get increased which also
requires an enhancement in supply of energy. But this enhancement of energy is becoming a
major issue because most of energy is developed by burning fossil burning that produce CO2 at
an atmosphere that leads to contribution in green house effect. Along with this now it wills also
affecting health of staffs or workers who conduct manufacturing process of a company. So it is
essential for everyone to be aware and adopt green process so that they can produce products and
services in effective manner without harming environment as well as surrounding.
2. The Case of Waste and Limits of Growth
Now a day level of pollution get increase due to which everyone and there lifestyle get
affected. But along with this there is also growth of population growth what directly and
indirectly affect availability of resources. This is so because as ratio of population increase,
consumption level also gets increased due to which at some point of time supply get decrease.
Such as in a city there is increment of population at urban area, due to which propels converted
farming land into place to leave, develop building and so on. This will solve one problem but
arise another one which is related to fewer crops, less animal growth and so on. This whole thing
will directly impact on environment and leads to global warming and green house effect.
3. Clean and Green Innovation: Closing the Loop
One of the most essentials and relevant problem mentioned in case is that wastage of
resources and excess use of chemical. This wills directly impacting on environment as well as
health of an individual. Moreover, it is responsibility of company and customers to adopt steps in
order to overcome this issue. Such as company may adopt green process which are eco friendly
and help in reusing waste material. Along with this it is also responsibility of customers to adopt
or buy those products which are eco friendly and not harmful to the environment.

4. The case of Zero Emission Vehicles (ZEV)
Day by day automobile industry is growing with new new innovation and creativity which
attract customers and encourage them to purchase it. But these companies are using petrol and
diesel instead of using battery due to which pollution level get increase and peoples getting affect
by various disease like asthma. So it is essential for respective company industry to adopt Zero
emission process which produce less or minimum pollution. Along with this companies can also
launch attractive batteries cars which not produce pollution as well as effective and eco fr4iendly
for world environment.
5. Recycling and reusing
By analysing condition of today’s environment company need to adopt recycling and
reusing process where they can produce or manufacture new products by using old one. Such as
Nike produce basketball and shoes. For this they can also green process which produce minimum
wastage and pollution at atmosphere. Along with this it is also necessary for customers to
understand concept of reuse and recycling so that they can adopt it in order to fulfil their
requirement without affecting environment. So it is essential for every organization to adopt
manufacturing resource as well as process which produce less or zero wastage. This will help
them in developing and maintaining environment effective and appropriate.
6. Innovation for sustainable business
Innovation is very necessary if an organization need to introduce effective products and
services for their customers. Now a day customers are also get more attracted toward innovative
and creative products because they are more effective in fulfilling need and requirement of
customers. This will also help a company in expanding its business as well as retain in particular
market for a long time by earning proper profitability and market shares. Moreover for
sustainability a company need to consider or focus on various elements like market analysis,
requirement of customers, new trends and technology and so on.