Nike’s CSR Framework and Strategic Pillars
Nike’s CSR and sustainability strategy is built around four central pillars:
1. Environmental Responsibility
2. Labour and Human Rights
3. Ethical Business Practices
4. Philanthropy and Social Impact
The company’s stated mission is “to bring inspiration and innovation to every athlete in the world.” Nike interprets this as a shared responsibility involving employees, suppliers, communities, and consumers. The 2025 strategy is operationalised through 29 corporate targets, which address climate action, diversity and inclusion, supply chain standards, and community investment. Executive compensation is now partly tied to ESG performance, reflecting a shift towards greater accountability.
Environmental Responsibility
Carbon Emissions and Energy Use
Nike’s “Move to Zero” initiative is the centrepiece of its environmental strategy. The company has set a target to achieve zero carbon and zero waste across its operations. By 2025, Nike aims for a 70% absolute reduction in greenhouse gas (GHG) emissions in owned and operated facilities, primarily by transitioning to 100% renewable electricity and electrifying its fleet. For its global supply chain, Nike’s goal is a 30% reduction in emissions by 2030.
Nike reports that, as of 2025, it has achieved 96% renewable energy use across its global operations and is on track to reach 100% in all owned and operated facilities. The company has also reduced GHG emissions by approximately 0.5 million tonnes through increased use of environmentally preferred materials.
Materials and Waste Management
Nike’s material strategy focuses on increasing the use of recycled and sustainable materials. By 2025, the company aims for at least 50% of its key materials—polyester, cotton, leather, and rubber—to be environmentally preferred. Nike reports that 80% of its products now incorporate recycled materials.
Waste management is another priority. Nike has diverted 99% of all footwear manufacturing waste from landfills. Programmes like Nike Grind and Reuse-A-Shoe recycle manufacturing scraps and post-consumer shoes into new products, sports surfaces, and playgrounds. The company’s goal is to divert 100% of waste from landfills in its extended supply chain, with at least 80% recycled back into Nike products or other goods.
Water Stewardship
Nike aims to reduce freshwater usage per kilogram in textile dyeing and finishing processes by 25% by 2025. The company collaborates with suppliers to implement water-saving technologies, particularly in water-scarce regions.
Circularity and Innovation
Nike is investing in circular design, where products are designed for recycling or reuse from the outset. The company collaborates with suppliers and industry partners to advance recycling standards and develop alternatives to traditional materials, aiming to create a value chain where waste is a primary source for new materials.
Labour and Human Rights
Nike’s labour and human rights strategy focuses on ensuring fair wages, safe working conditions, and ethical treatment of workers throughout its global supply chain. The company’s 2025 targets include ensuring that 100% of facilities in its extended supply chain meet its labour, health, safety, and environmental standards.
Nike has faced criticism in the past over alleged poor working conditions and child labour, particularly in Asia. In response, the company has implemented stricter oversight, transparency measures, and third-party audits. Nike’s progress is monitored by NGOs and industry groups, and the company publishes annual impact reports.
Diversity and Inclusion
Nike’s diversity and inclusion targets for 2025 include achieving 50% representation of women in its global corporate workforce and 45% in leadership roles. The company reports that racial and ethnic minorities now make up 65% of its workforce, surpassing some of its targets. Nike has also committed $125 million by 2025 to support businesses and nonprofits working towards equality and social justice.
Ethical Business Practices
Nike’s approach to ethical business includes supply chain transparency, anti-corruption policies, and adherence to global governance standards. The company publishes annual impact reports and provides quarterly updates to its board’s CSR committee. Executive compensation is linked to ESG performance, with annual milestones and accountability measures in place.
Philanthropy and Social Impact
Nike’s philanthropic activities focus on youth, education, health, and promoting access to sport. The Nike Community Impact Fund (NCIF) supports local organisations, while initiatives like “Made to Play” and “Coach the Dream” aim to break down barriers for children, especially girls, to participate in sport.
Nike encourages employee volunteerism, matching donations and rewarding volunteer hours with additional contributions to chosen causes. The company has pledged $125 million by 2025 to support businesses and nonprofits committed to equality and social justice.
Progress, Challenges, and Criticisms
Nike reports progress in several areas, including increased use of renewable energy, higher rates of waste diversion, and improved diversity and inclusion metrics. The company has met or exceeded some of its 2025 targets, particularly in renewable energy adoption and waste management.
Despite these achievements, Nike acknowledges ongoing challenges. The company did not meet all targets related to reducing average product carbon footprint and lowering per unit energy consumption. Supply chain transparency and labour standards, especially in lower-tier suppliers, remain areas of concern. Increased demand for certain materials, such as leather, has also complicated efforts to reduce overall carbon emissions.
Nike’s CSR efforts are subject to ongoing scrutiny by NGOs, industry groups, and the public. Critics point to the company’s historical record on labour practices and environmental impact, arguing that more robust oversight and transparency are needed. Nike’s progress is monitored through third-party audits and public reporting, but the complexity of its global supply chain presents persistent risks.
Allegations of “greenwashing” have also surfaced, with some stakeholders questioning whether Nike’s sustainability reports accurately reflect its real-world impact. Shareholder proposals have called for more binding commitments on human rights and environmental performance, though these have not always been adopted by the company’s board or investors.
Future Outlook
Nike’s 2025 CSR and sustainability strategy reflects a broad and ambitious agenda, with clear targets and accountability mechanisms. The company’s approach is comprehensive, covering environmental, social, and governance issues across its global operations. While progress has been made, ongoing challenges highlight the need for continuous improvement, particularly in supply chain transparency and emissions reduction.
Nike’s stated goal is to achieve net-zero emissions by 2050 and to make all products circular. The company’s ability to meet these long-term targets will depend on sustained investment, innovation, and collaboration with industry partners, suppliers, and communities.
Several trends are shaping Nike’s future CSR strategies. The increasing urgency of climate change is prompting companies to adopt more sustainable practices. Nike aims to reduce its carbon footprint by 63% by 2030 and reach net-zero emissions by 2050, necessitating a comprehensive re-evaluation of its operations. Additionally, there is a growing emphasis on corporate transparency and accountability, with stakeholders expecting detailed reporting on CSR progress.
While Nike has set ambitious CSR goals, there are areas where the company can enhance its efforts. Strengthening supply chain transparency and ensuring adherence to labour standards remain critical, especially in regions prone to human rights violations. Additionally, Nike can focus on achieving its sustainability targets, particularly in reducing greenhouse gas emissions and waste, to meet stakeholder expectations and contribute meaningfully to global environmental goals.
