In 2001, Nike set a target to reduce CO2 emissions from business travel and facilities to 13% below 1998 levels by the end of 2005. Nike also committed to create baselines for major subcontracted footwear and clothing manufacturing facilities, and determine an emissions reduction strategy. Nike pledged to examine its supply chain for opportunities to reduce greenhouse gas (GHG) emissions, and by 2005, determine a GHG reduction strategy for logistics.
Between 1998 and 2006, Nike revenue increased 57%, while emissions declined 20%. Nike also phased out GHG emissions from its products, and completed its goal of measuring the GHG emissions from its contracted manufacturing and shipping operations.
“Going forward, we also see that energy efficiency measures can help reduce our costs. In a world where fossil fuels become increasingly expensive, a transition to more green energy sources could put us ahead of the predicted cost curve,” said Sarah Severn, Director at CR Horizons.
Nike created a CO2 model that calculates the emissions for every leg of all international shipments of Nike products, and the company is working to identify ways to reduce emissions from sea freight. Even though the emissions from suppliers and logistics operations were outside the widely accepted boundaries of a company's footprint, Nike recognized the need to address them.
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