NIKE, Inc. 2025 TARGETS Our Vision 2025 TARGETS
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NIKE, Inc. 2025 TARGETS Our Vision 2025 TARGETS Over the next five years, we will bring our purpose to life with a focus on people, planet, and play. We have developed 29 targets to achieve our ambitions. Our targets are aggressive, but achievable. We’re committing to clear action plans with clear goals, clear measures – and clear accountability. Above all, we’re committing to helping shape a better future, across our company and around the world. Like in training for any competition, we may face unforeseen challenges. We’ve set targets that will push us to new boundaries, because we know now is the time to accelerate. We have plans in place to achieve our targets, knowing progress depends on teamwork and end-to-end execution. We expect the journey won’t be a straight path – we will amplify successes and we will pivot from any setbacks. And collective action will be our call-to-action, because we know we can’t do it alone. Our 2025 Targets are our roadmap. The targets we have set are industry-leading in how we: • Tie executive compensation to our 2025 target performance • Leverage annual milestones to improve performance management • Extend accountability of targets deeper into our value chain, with new targets focused on waste, labor and supplier diversity • Align with Science Based Targets and Sustainable Development Goals To learn more about NIKE’s efforts to bring purpose to life, go to purpose.nike.com. NIKE Running Campaign FY20 NIKE, Inc. Impact Report 2 2025 Targets People Community Representation 50% representation of women in global corporate Active Kids Drive sustained community impact by getting kids and Hiring workforce1 and 45% in leadership positions2 moving in our key cities and sourcing backyards with 50% girl participation 30% representation of U.S. racial and ethnic minorities3 at Director level and above; increase pipeline of Black Inclusive Invest $125 MILLION to support organizations and Latinx talent at Director and above Communities working to level the playing field and addressing racial inequality 35% representation of racial and ethnic minorities in our U.S. corporate workforce4 Employee Increase the number of employees engaged in their Engagement communities to a minimum of 35% $10 MILLION investment earmarked for historically Black colleges and universities (HBCU) and Hispanic- Community Invest 2% of prior-year pre-tax income to drive positive serving institutions (HSI) in the form of scholarships Investment impact in communities and academic partnerships to increase intern and direct hires ENHANCE OPPORTUNITIES and marketing of Planet open roles for first-line athletes5 to compete for Carbon 70% absolute reduction of greenhouse gas (GHG) corporate roles emissions in owned or operated facilities through 100% renewable electricity and fleet electrification 100% of strategic suppliers6 are increasing access to career opportunities and upward mobility for women GHG emissions from key suppliers’ manufacturing and employed in their facilities transportation operations11 will be AT OR BELOW 2020 Maintain pay equity across all employee levels LEVELS, DESPITE ANTICIPATED BUSINESS GROWTH, Pay & Benefits 100% through use of renewable energy, energy efficiency and on an annual basis alternative fuels Provide competitive and equitable benefits for tons of GHG emissions reduced through all employees 0.5 MILLION increasing our use of environmentally preferred materials 12 6 to 50% of all key materials Health & Safety 100% of strategic suppliers are building world-class, safe, and healthy workspaces for the people making waste reduction per unit in manufacturing, our products Waste 10% distribution, headquarters, and packaging through improved design and operational efficiency Inclusive Culture TOP QUARTILE in benchmarked companies for both 7 8 & Engagement engagement and inclusion 100% waste diverted from landfill in our extended supply chain with at least 80% recycled back into NIKE Continue to focus on improving access to athletes* of products and other goods all abilities for our brand, our experiences, our product, our facilities, and our company 10X the amount of finished product waste refurbished, recycled, or donated 100% of strategic suppliers6 are measuring and improving the engagement of the people making our products Water 25% reduction in freshwater usage per kg in textile dyeing and finishing Education 100% of Vice Presidents complete and be credentialed & Professional on Inclusive Leadership education 13 BILLION liters restored through a portfolio of Development watershed projects that support long-term resilience for 2X INVESTMENTS focused on professional water-stressed ecosystems and communities within our development for racial and ethnic minorities extended cotton supply chain in the U.S. and women globally Chemistry Adopt clean chemistry alternatives for our Business Diversity $1 BILLION cumulative spend on diverse suppliers9 10 priority chemistries across our supply chain & Inclusion Foundational 100% of facilities in our extended supply chain10 meet NIKE’s foundational labor, health, safety, and environmental standards Expectations demonstrating respect for the rights of their workers and communities where they operate * “If you have a body, you are an athlete.” – Bill Bowerman, NIKE cofounder and celebrated track coach FY20 NIKE, Inc. Impact Report 3 2025 Targets Footnotes 1 Global Corporate Workforce includes all global full-time employees who do not work in our retail stores, distribution centers, or Nike Air manufacturing innovation (AIR MI). 2 Leadership Positions include Vice Presidents and above. 3 U.S. Racial and Ethnic Minorities as defined by EEO1 categories including American Indian or Alaskan Native, Asian, Black or African American, Hispanic/Latino, Native Hawaiian or other Pacific Islander. 4 U.S. Corporate Workforce includes all U.S.-based full-time employees who do not work in our retail stores, distribution centers, and Nike Air manufacturing innovation (AIR MI). 5 First-line athletes include full-time employees who work in our retail stores, distribution centers, or Nike Air manufacturing innovation (AIR MI). 6 Strategic Suppliers: Strategic Finished Goods Suppliers; Suppliers representing approximately 80% of total footwear and apparel production. 7 Engagement Index includes three questions: “I am optimistic about the future of NIKE, Inc.”; “I would recommend NIKE, Inc. as a great place to work”; “My work gives me a feeling of personal accomplishment.” 8 Inclusion questions include: “My team has a climate in which all perspectives are valued”, “I feel valued as an employee of NIKE”, “I can be myself at work”, “All employees, regardless of their differences are treated fairly”, “My manager supports inclusion and diversity in the workplace”, “NIKE, Inc. is committed to diversity and inclusion in the workplace.” 9 A Diverse Supplier is one that must be majority (at least 51%) owned, operated, managed, and controlled by a diverse* person or persons who are either U.S. citizens or lawful permanent residents. *A “diverse person” may be defined as a minority**, woman, disabled, LGBTQ and/or veteran. **Minority defined as African-American, Hispanic, Asian-American, Native-American, Pacific Islander, or other types of ethnic minorities here in the United States. 10 Facilities in Extended Supply Chain: 100% finished goods suppliers (AP, FW, and EQ); in-scope materials suppliers; focus DCs; and Air Manufacturing Innovation facilities - In-Scope Materials Suppliers: Suppliers representing approximately 90% of total footwear upper materials and apparel textiles production. - Focus DCs: Distribution centers representing at least 80% volume. 11 Key Suppliers’ Manufacturing and Transportation Operations: Strategic footwear suppliers; strategic apparel suppliers; strategic footwear and apparel materials suppliers; inbound and outbound logistics - Strategic Footwear Suppliers: Suppliers representing approximately 95% of total footwear production - Strategic Apparel Suppliers: Suppliers representing approximately 60% of total footwear production - Strategic Materials Suppliers: Suppliers representing approximately 80% of total footwear upper materials and apparel textiles production. 12 Key Materials: Polyester, cotton, leather, and rubber. FY20 NIKE, Inc. Impact Report 4 PEOPLE At its best, sport redefines human potential. When people see what they’re capable of, they can break barriers in areas where we need change the most: protecting the planet, creating active communities, and advancing equality. We are building a more diverse, inclusive team and culture of belonging – one that reflects the diversity of the athletes we honor, the people who love our products, and the communities we serve. Across our value chain, we seek to advance responsible sourcing with fair and equal conditions for the people who make NIKE products. Our consumers and stakeholders hold NIKE to a higher standard. And so do we. WE INVEST Around the world, we support athletes who lead on and off the field, visionaries who inspire a culture of possibility, and youth who create a brighter future. Our goal is, and always will be, that NIKE moves people IN THE into action to create a better world. POWER OF PEOPLE TO MOVE THE WORLD FORWARD. REPRESENTATION & HIRING 2025 Targets 50% representation of women in global corporate workforce and 45% in leadership positions 30% representation of U.S. racial and ethnic minorities at Director level and above; increase pipeline of Black and Latinx talent at Director and above