From shifting to water-based adhesives instead of petroleum-derived ones in 1992, to being the first clothing company to publish a corporate and social responsibility report in 2001, Nike has long been leading the way in terms of ethics and sustainability.[1] But is that so? It might be hard to believe, but more than once the company’s name became a synonym to sweatshops and exploitation.
The reality is that Nike has been in an on-again, off-again relationship of doing the right thing for quite some time. It’s time to get real and find out how ethical Nike really is. Let’s get started!
Nike’s not-so-bright past: Forced Labor
Nike has been the subject of many accusations regarding labor exploitation. In fact, accusations of using sweatshops have existed since the 1970s, although it was only two decades later that these were corroborated. In 1991, activist Jeff Ballinger published a report exposing the Portland-based sportswear giant. In a nutshell: low wages and poor working conditions.[2]
As you can imagine, allegations of involvement in slavery, human trafficking, and child labor were not good business for Nike. To win back its consumers the retailer spent more than a decade cleaning up its name, and it paid off! It is not every day that one is defined as “the most sustainable apparel and footwear company in North America for environmental and social performance, including its labor record.”[3]
Though it’s worth noting that this “cleansing” process took place long before the birth of social media and the cancel culture,[4] let’s not lose focus…
Since the 90s fiasco, the brand has won plaudits for its efforts, but many of its practices kept being problematic. For starters, in 2017 the company turned its back to the International Labor Rights Forum on its commitment to the Worker Rights Consortium.[5] In 2019, Nike received an “E” grade (the worst), in the 2019 Tailored Wages UK report, meaning that “the brand can show no evidence of a Living Wage being paid to any workers.”[6] The icing on the cake came in February 2020, when the Washington Post reported that Qingdao Taekwang Shoes Co., a Nike supplier factory, had been employing Uighurs to work under forced labor conditions.[7]
Women and Nike
Nike has faced public scrutiny related to how it treats women on more than one occasion. In 2018, two employees filed a class-action lawsuit against Nike alleging sex discrimination.[8] In 2019, Alysia Montaño, a former Nike-sponsored Olympic athlete, spoke out on how the company not only did not support pregnant athletes, but threatened to “pause her contract and stop paying her if she had a baby.”[9] Of course, “changes” were not long in coming, and a few months later the retailer announced a new maternity policy for all sponsored athletes.
The irony here is that, while all of these were happening, Nike depicted itself as a supporter of women and featured strong female athletes in advertising campaigns. Classic greenwashing move!
Nike and the Environment
Most of the things Nike produces are made of petroleum-based materials like polyester and nylons (think of yoga pants, gym tops, running shoes, etc.). As such, the negative impact on the environment is quite high.
To mitigate it, Nike has launched the ‘Move to Zero’ (MTZ) campaign, its “most ambitious undertaking to date” since all its aspects globally “have been aligned with one clear planet-saving mission.”[10] According to the company, MTZ is its “journey toward zero carbon and zero waste to help protect the future of sport.”[11]
Wait a minute, future of… SPORT? Yes, you read that right. But it’s not at all far-fetched since according to the sportswear giant, “protecting the future of sport means doing our part to protect the planet.”[12] Just think about how extreme heat (which we are now seeing a lot due to global warming) can affect an athlete’s performance; or how poor air quality can affect our respiratory system.[13]
Let’s recap. Nike knows that a conscious choice of materials is a big step towards zero carbon and waste because they account for more than 70% of any product’s footprint.[14] Hence, through MTZ, the company is focusing on using more recycled materials. As of today, around 75% of all the retailer’s shoes and apparel contain some recycled material.[15]
Some of the innovative products the company has made so far include the Nike Flyknit (a shoe upper made from plastic bottles), the Nike Flyleather (a leather-like material made by binding recycled leather fibers with synthetic fibers), and the Nike Air (which soles are made of at least 50% recycled manufacturing waste). Also, the company uses recycled polyester made from plastic bottles, recycled nylon, and certified organic, recycled cotton.
Nike’s 2025 Targets
Nike is moving forward in its sustainability path to, hopefully, end exploitation and discrimination, and to reduce its environmental impact. In line with the MTZ campaign, Nike has set its 2025 sustainability targets which, unlike the previous ones, are quite quantitative and science-based. Let’s take a look at the most relevant ones:[16]
- 50% female representation in the overall corporate workforce and 45% in leadership positions.
- Maintain 100% pay equity at all employee levels on an annual basis and provide competitive and equitable benefits for all employees.
- 100% of strategic suppliers are building world-class, safe and healthy workspaces for the people making our products.
- Absolute reduction of 70% of greenhouse gas (GHG) emissions in owned or operated facilities, through 100% renewable electricity and fleet electrification.
- 100% of GHG from key suppliers’ manufacturing and transportation operations will be at or below 2020 levels, despite anticipated business growth.
- 10% waste reduction per unit in manufacturing, distribution, headquarters and packaging through improved design and operational efficiency.
- 100% waste diverted from landfill in the company’s extended supply chain with at least 80% recycled back into Nike products and other goods.
- Reduction by 25% of freshwater usage per kg in textile dyeing and finishing.
- 13 billion liters restored through a portfolio of projects that support long-term resilience for water-stressed ecosystems and communities within our extended cotton supply chain.
Guiding for the Future of Design
Apart from that, the company created Circularity: Guiding the Future of Design (you can access the complete guide here or the short version here], a guide that gathers “principles that support a universal call to action for the fashion industry.”[17] We must admit that it was a stroke of genius on Nike’s part. If you are a brand owner or are planning to be one, this should be your starter holy grail.
Final Thoughts: On the right track
The initiatives and targets that we just saw show that Nike is on the right track and better positioned sustainability-wise with respect to some competitors. However, it has still a long way to go before it can truly be considered “sustainable”. But will it ever be?
We are talking about a company that just in 2020 had annual revenue of over $37 million. So, the truth is that no matter how many targets the company sets and complies with, it could never be considered sustainable, producing the enormous number of products it does.
John Hoke, Chief Design Officer Nike, said that “by focusing on progress and not perfection and by making better choices, we embrace the chance to reconsider our craft in hope that it forms a groundswell of change.”[18] Well, the progress we need to focus on now is changing the system from the root and not just disguising it to make it look prettier or “greener”.
What do you think about Nike’s 2025 targets? How realistic do you think they are? Let us know in the comments below!
