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This week we will start our journey within the companies that are embracing the circular economy principles and we will see how they are re-think their products and/or supply chains.
Today’s company is: NIKE, Inc.
Nike, Inc. is among the global partners of Ellen MacArthur Foundation, a British NGO whose stated aim is “inspiring a generation to re-think, re-design and build a positive future through the framework of a circular economy”.
The main objective Nike, Inc. has set is to double its business with half the impact. Moreover, the company’s main concern is to decouple its growth from scarce resources through sustainable innovation.
This objective is based on the idea that corporate social responsibility issues, can no longer be considered as a marginal concern, an extra cost, or even worse, a reputation threat for the company, rather sustainability has to been conceived as a core part of the growth strategy.
Nike is putting its effort to rethink materials, methods of making products as well as business models.
According to the company’s sustainability report the primary focus is on design. In fact, the sustainable team has been integrated into the innovation department. The brand has developed the Material Sustainability Index (MS) that provides to the designers product information about 57000 different materials, supplied by 741 vendors. Nike employed the MSI to launch the “MAKING” app that, by measuring the sustainability performance of materials and products, helps designers to make informed decisions about the materials they choose.
But, it is not only products and design, Nike’s concern is also on supply chains and operations. The company’s sustainability report (FY 2014-15) shows that in 2015 approximately 20 of the brand’s contract factories used 500000 MWh of renewable energy. Nike’s commitment is to work with contract factories to scale renewable energy use. The brand, in fact, aims to reach 100% renewable energy in owned or operated facilities by the end of 2025. In 2015, 27000 tonnes of Nike factory scraps were recycled into materials and used in Nike footwear and apparel.
Finally it is worth mentioning Nike European Logistics Campus in Belgium. Opened on May 26th, 2016, it promise to drive the “supply chain of the future”
The logistic center is entirely conceived on the basis of circular economy principles: renewable powers, biodiversity and closed-loop. The campus, in fact, sources energy from its surrounding landscape, specifically from five locally generated renewable energy sources, six 150-meter-high wind turbines and solar panels. In addition, more than 95% of waste generated on-site is recycled and transportation routes to and from the campus have been optimized in order to reduce CO2 emissions by 30%.
If you want learn more about the circular economy in general I suggest you to watch this interview to Ellen MacArthur, Cyrus Wadia form Nike and Kate Brand from Google
If, instead, you wish to read more about Nike resolutions here you can download their sustainability report here → http://about.nike.com/pages/environmental-impact
If you are interested in this topic, stay tuned with this section of the LLC Blog!
[photo credits: Nike, Inc. Website]