Environmental Analysis Of Nike

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.2.2 Sustainable Consumption Nike is trying to reduce its carbon emission throughout the supply chain by increasing efficiency and the use of renewable energy. However, the company is confronted with several constraints. First of all, the processes within their supply chain are by nature energy-intensive. Furthermore, a large part of Nike’s contract factories is operating in locations where there is low access or low incentives for renewable energy (Nike Inc., 2016a, p. 15). The biggest energy and carbon impact occurs where materials are grown, produced and processed (Nike Inc., 2016a, p. 15). Nike tries to educate their team on the relevance of making better decisions concerning lover impact materials. Further upstream of their supply chain, …show more content…

The company differentiates between the Apparel Sustainability Index (API) and the Footwear Sustainability Index (FSI). According to Textile Exchange (2015), Nike is using the highest amount of recycled polyester in the apparel industry. In 2015, the company bought 17 percent recycled polyester for apparel. Furthermore the company uses only recycled, organic or Better Cotton Initiative (BCI) certified cotton. In 2015, 10 percent of the cotton used was organic and 19 percent BCI certified (Nike Inc., 2016a, p. …show more content…

Mostly when new footwear models are introduced to the market, they generally cause higher-than-average amount of waste during the production process (Nike Inc., 2016a, p. 38). Furthermore, some materials, for example leather in the textile industry, are in general difficult to recycle. According to Ramamoorthy et al. (2017, p. 1) even though companies try to recycle cotton/polyester blend woven fabrics after end of life, most of the fabrics end up in landfills. The problem of blend fabrics is that their fibre arrangement are often too complex to be separated economically for reuse. Furthermore, Nike uses over 16,000 different materials in their products, which makes the recycling process of each material used very complex (Nike Inc., 2016a, p. XXX). Therefore, it is reasonable that the company focuses on recycling the most frequently used materials that can be found in 98 percent of the products, namely leather, polyester, cotton and synthetic leather as sustainable materials are the greatest innovation challenge for

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