MS70126E – Global Sustainable Operations
Nike Operational Sustainability Report
Student Number: 123456789
Date of Submission: 22 May 2023
Contents
1 Executive Summary.................................................................................................3
2 Introduction..............................................................................................................3
3 Operational Strategy...............................................................................................4
4 Leadership................................................................................................................5
5 Planning....................................................................................................................6
6 Support.....................................................................................................................6
7 Operations................................................................................................................7
8 Conclusion................................................................................................................9
1 Executive Summary
This report provides an assessment of Nike's operational strategy and supply
chain sustainability practices using the ISO9001 Quality Management System
standard. The report evaluates Nike's operational strategy, leadership, planning,
support, and operations and provides recommendations for improvements to
enhance the company's sustainability performance.
The assessment revealed that Nike has a strong operational strategy that is
focused on sustainability. The company has made significant progress in
improving its environmental and social impact. Nike has established a strong
leadership commitment to sustainability, and there are systems in place to
support sustainability goals. However, there are areas where Nike can improve
its sustainability performance, particularly in its planning and operations. The
report recommends that Nike invest in technology to enhance its supply chain
visibility and engage with suppliers to improve sustainability performance.
2 Introduction
Nike is an international company focused on designing and selling sporting
equipment, clothing, and footwear. The company operates in over 190 countries
and has more than 79,000 employees. Sustainability is a key focus for Nike, and
the company has made significant progress in improving its environmental and
social impact. (Nike, 2022) The ISO9001 Quality Management System standard is
a globally recognized standard for quality management. This report provides a
performance evaluation of each area within Nike's business in terms of
operational strategy and supply chain sustainability practices using the ISO9001
standard.
3 Operational Strategy
Nike has a strong operational strategy that is focused on sustainability. The
company's sustainability goals are integrated into its overall business strategy,
and the company has made significant progress in reducing its environmental
impact. Nike has set ambitious targets to reduce carbon emissions, reduce
waste, and increase the use of sustainable materials in its products. (Nike, 2023)
Nike has established partnerships with sustainability organizations such as the
Better Cotton Initiative and the Sustainable Apparel Coalition to promote
sustainable practices in the apparel industry. The company offers several
product lines such as the Flyknit shoe, that focus on sustainability by reducing
the amount of material used in manufacturing. Nike aims to reduce the
environmental impact of waste through improved operational controls. (Nike,
2022)
The evaluation of Nike's operational strategy using the ISO9001 standard
revealed that the company has strong policies and procedures in place to
manage its sustainability performance. The company's sustainability goals are
clearly defined, and there is a commitment to continuous improvement. Nike
has established effective communication channels to engage with stakeholders,
including customers, employees, and suppliers.
However, there are areas where Nike can improve its operational strategy. The
company can enhance its focus on circular economy principles, such as reducing
waste and increasing resource efficiency. Nike can also explore opportunities to
develop sustainable products and services that meet the needs of its customers.
3.1 Recommendations:
1. Nike should enhance its focus on circular economy principles, such as
reducing waste and increasing resource efficiency.
2. Nike should explore opportunities to develop sustainable products and
services that meet the needs of its customers.
4 Leadership
Nike has established a strong leadership commitment to sustainability. The
company has a sustainability committee that is responsible for overseeing the
company's sustainability strategy. The committee is composed of senior leaders
from across the organization and is responsible for setting sustainability goals,
monitoring performance, and identifying opportunities for improvement.
Nike's leadership is also committed to engaging with stakeholders to improve
sustainability performance. The company has established partnerships with
NGOs, industry associations, and other organizations to promote sustainable
practices in the apparel industry. Nike also engages with customers and other
stakeholders through its corporate responsibility reports and sustainability
communications.
The Nike leadership recognise the importance of diversity and inclusion and
implemented a program to support all employees. The programme measures
the company culture in relation to diversity, equality, and inclusion. Nike also
provides investment in external partners and communities to support their DEI
projects, increasing their spending of pre-tax income from 1.5% in 2021 to 2.0%
in 2022. (Nike, 2022)
The evaluation of Nike's leadership using the ISO9001 standard revealed that
the company has a strong leadership commitment to sustainability. The
company's sustainability goals are supported by senior leaders, and there is a
commitment to transparency and stakeholder engagement.
However, there is a need for Nike to improve its communication and
engagement with suppliers. The company can enhance its leadership by
engaging with suppliers to ensure that they understand the company's
sustainability goals and are committed to meeting them.
4.1 Recommendations:
1. Nike should enhance its leadership by engaging with suppliers to ensure
that they understand the company's sustainability goals and are
committed to meeting them.
2. Nike can strengthen their community impact through stronger community
investment using the Nike Foundation
5 Planning
Nike has established systems to support sustainability goals. The company has
developed a sustainability index that measures the environmental and social
impact of its products. The index is used to evaluate the sustainability
performance of suppliers and to identify opportunities for improvement.
The evaluation of Nike's planning using the ISO9001 standard revealed that the
company has strong systems in place to support sustainability goals. The
company has established sustainability targets, and there is a commitment to
continuous improvement. Nike has also implemented effective communication
channels to engage with stakeholders, including customers, employees, and
suppliers.
However, there is a need for Nike to improve its reporting and monitoring of
sustainability performance. The company can enhance its planning by
developing more detailed reporting systems to track progress against
sustainability targets. Nike can also invest in technology to enhance supply chain
visibility and improve sustainability performance.
5.1 Recommendations:
1. Nike should develop more detailed reporting systems to track progress
against sustainability targets.
2. Nike should invest in technology to enhance supply chain visibility and
improve sustainability performance.
6 Support
Nike has established systems to support sustainability goals. The company has
developed a sustainability index that measures the environmental and social
impact of its products. The index is used to evaluate the sustainability
performance of suppliers and to identify opportunities for improvement.
In addition, Nike has implemented training and development programs to
improve sustainability awareness and knowledge across its supply chain. The
company has also established a Supplier Code of Conduct that outlines its
expectations for suppliers in terms of labour, health and safety, and
environmental performance.
The evaluation of Nike's support using the ISO9001 standard revealed that the
company has strong systems in place to support sustainability goals. The
company has established effective communication channels to engage with
stakeholders, including customers, employees, and suppliers. Nike has also
implemented effective training and development programs to improve
sustainability awareness and knowledge across its supply chain.
However, there is a need for Nike to enhance its support for suppliers in terms
of sustainability performance. The company can provide more resources and
support to help suppliers meet sustainability goals. Nike can also establish a
feedback mechanism to gather input from suppliers on the effectiveness of its
sustainability initiatives.
6.1 Recommendations:
1. Nike should provide more resources and support to help suppliers meet
sustainability goals.
2. Nike should establish a feedback mechanism to gather input from
suppliers on the effectiveness of its sustainability initiatives.
7 Operations
Nike has made significant progress in improving the sustainability performance
of its operations. The company has implemented energy-efficient lighting and
HVAC systems in its stores and warehouses and has increased the use of
renewable energy in its operations. Nike has also implemented waste reduction
initiatives, such as recycling programs and packaging optimization.
The evaluation of Nike's operations using the ISO9001 standard revealed that
the company has strong systems in place to support sustainability goals. The
company has established effective waste reduction initiatives, and there is a
commitment to continuous improvement.
However, there is a need for Nike to enhance its sustainability performance in its
manufacturing operations. The company can work with suppliers to reduce
energy consumption and implement renewable energy sources in
manufacturing facilities. Nike can also explore opportunities to implement
closed-loop systems to reduce waste and increase resource efficiency in its
operations.
7.1 Recommendations:
1. Nike should work with suppliers to reduce energy consumption and
implement renewable energy sources in manufacturing facilities.
2. Nike should explore opportunities to implement closed-loop systems to
reduce waste and increase resource efficiency in its operations.
8 Conclusion
In conclusion, Nike has a strong operational strategy that is focused on
sustainability. The company has made significant progress in improving its
environmental and social impact, and there are systems in place to support
sustainability goals. However, there are areas where Nike can improve its
sustainability performance, particularly in its planning and operations. The
report recommends that Nike invest in technology to enhance its supply chain
visibility and engage with suppliers to improve sustainability performance. Nike
should also provide more resources and support to help suppliers meet
sustainability goals and explore opportunities to implement closed-loop systems
in its operations. By implementing these recommendations, Nike can further
enhance its sustainability performance and continue to be a leader in
sustainable business practices. Additionally, Nike can also continue to
strengthen its leadership commitment to sustainability by engaging with
suppliers and other stakeholders to ensure that they understand the company's
sustainability goals and are committed to meeting them. Nike can also improve
its communication and engagement with suppliers to ensure that they have the
necessary resources and support to meet sustainability goals. By taking these
actions, Nike can enhance its overall sustainability performance and continue to
be a leader in sustainable business practices.
REFERENCES
9 References
Nike, 2022. Flyknit. [Online]
Available at: https://www.nike.com/flyknit
[Accessed 26 April 2023].
Nike, 2022. Nike 10K Report. [Online]
Available at:
https://s1.q4cdn.com/806093406/files/doc_downloads/2022/399556(1)_27_Nike-
Inc._NPS_Combo_Form-10-K_WR.pdf
[Accessed 26 April 2023].
Nike, 2023. Nike Sustainability. [Online]
Available at: https://www.nike.com/gb/sustainability
[Accessed 18 April 2023].
