Nike’s Impact Report Shows Progress On Diversity

Nike’s Impact Report Shows Progress On Diversity

Nike Inc’s FY18 Impact Report showed Nike saw a 4 percent increase of VP-level representation of women in 2018, bringing the total to 36 percent.

The report, the company’s first Impact Report, further revealed a 3 percent increase of VP-level representation of U.S. underrepresented groups, bringing the total to 19 percent. Nike achieved a global pay equity ratio for men to women, and white to underrepresented groups in the U.S. Ten percent of employees received an adjusted base salary as part of ongoing competitive pay management.

In a letter included in the report, Mark Parker, CEO, vowed further improvement.

“We know that we can do better, and we know that we can be better as a more diverse company. Incremental change is not enough,” wrote Parker. “So, we’re taking intentional action to increase representation, especially across our leadership. That includes continuing to expand our pipeline of diverse candidates at leadership levels. It also includes holistic approaches across our organization — from mitigating potential bias in the interviewing process to increasing training programs that will help strengthen a culture of belonging.”

The report covered Nike’s impact on the environment and community activation.

Parker noted that Nike committed to 100 percent renewable energy in North America and Europe in its past year as part of a target to source 100 percent renewable energy across global operations by 2025. The report noted that owned and operated plants use 75 percent renewable energy through existing agreements.

Nike also joined the Global Fashion Agenda and the United Nations Framework Convention on Climate Change (UNFCCC) Fashion Industry Charter for Climate Action. Wrote Parker, “Protecting our planet’s future goes beyond lessening our own environmental footprint. For Nike, it also means using our voice to power greater change.” He added that “the urgency of climate change calls for significant industry shifts.”

The report details Nike’s priorities and progress in the use of recycled and sustainable materials, reducing waste and water usage, and energy efficiency.

On community involvement, Nike’s Made to Play community programs reached 16.5 million kids worldwide in 2018. This past year, Nike also reached nearly 100,000 coaches through Nike-supported programming, with a specific focus on increasing the number of female coaches to help inspire girls. A total of $79.4 million was invested in communities around the world.

On supply chain transparency, Nike last year furthered its disclosures to include core materials supply base. Parker said, “By driving greater accountability for ourselves and our suppliers, we open up more opportunities to advance worker engagement and wellbeing across our value chain.”

He noted that a decade and a half ago, Nike was the first company in the industry to publicly disclose its supply base for all finished goods manufacturing facilities. The report noted that 93 percent of Nike’s contract factories are rated bronze or better and Nike conducted a total of 471 audits last year. Progress was also made increasing workforce engagement at the factory level.

Parker indicated that more Impact Reports will be coming annually to reveal where the company is “making progress and face head-on the areas where we can improve.” The disclosures will set a bar to aspire Nike’s team to reach its potential but the report also signals a further step in transparency offered by management.

Wrote Parker, “In the face of today’s challenges — from climate change to inequality to how we unleash the potential of the next generation — I believe we need our boldest dreams yet. We need a broader vision for leadership and a greater openness for risk. We need to question and transform existing models. And above all, we need to back our aspirations with purposeful action.”

The full report is here.