IV. Appendix

Reporting

Introduction

In NIKE, Inc.’s previous corporate responsibility (CR) report, which covered FY07 through FY09, we shared that we were shifting away from periodically producing a single, comprehensive report. Since then, we have carried out this promise by introducing additional, more-frequent updates and stories via the Nike Better World website and an updated NIKE, Inc. corporate website, both of which include news and stories about our sustainability and performance but do not replace this point-in-time look back. We have also shifted our reporting to align with our approach to business and have created a platform for ongoing reporting. While still reporting on corporate responsibility topics, we also talk more about sustainability and innovation, which are key drivers of growth within the context of responsibility.

Our reporting for FY10/11 continues this trend.

The Value of Reporting

At Nike, we see reporting as an important means of sharing information about our corporate responsibility strategy, targets, approach and performance. The information we prepare and report accounts for our business impacts and the desires of stakeholders and seeks to provide an open, clear picture of our aims and progress in incorporating responsible practices into our operations. We believe that reporting also provides an indicator – to ourselves and others – of our ability to succeed and thrive. We use sustainability as way to systemically address risk management, efficiency, innovation and future-looking efforts – all of which are critical in positioning Nike for long-term growth.

We believe that transparency is a central component of a responsible business strategy and that reporting is critical in delivering transparency. Reporting is the main tool we use to provide critical information to our stakeholders about how we manage CR issues and impacts. Our previous reports include a broader discussion of why we report on CR performance and our perspective on materiality – and are available for context.

Reporting Guidance

We support the Global Reporting Initiative (GRI) and continue to work with the GRI to develop specific guidelines for the apparel and footwear industries. We developed this report with reference to the Global Reporting Initiative’s third generation of indicators (G3). The Apparel and Footwear Sector Supplement Indicators, in draft/pilot form, have also been considered. Nike is a member of the Ceres Company Network and endorses the principles of the United Nations Global Compact (UNGC). This report describes actions we have taken to implement these principles, and serves as our Communication on Progress as required for all companies that endorse the UNGC.

This site includes an index that points readers toward relevant GRI indicators and UNGC principles, and also includes search functions that allow users to find information and access our reporting. The GRI guidelines include different application levels, from A+ (the most rigorous) to C. We have assessed our performance against the GRI guidelines at the B level.

Intended Audiences

Our primary audiences for this report are those who seek a deep understanding of both the issues Nike faces and our strategic response to those issues as we strive for long-term sustainable growth. Historically, these audiences have included leaders of nongovernment and advocacy organizations, media, other businesses, academics, and analysts and investors representing the socially responsible investment community. Other important stakeholders who access and read our reporting include employees, students, suppliers, contract manufacturers, customers, consumers and individuals with an in-depth knowledge of corporate responsibility.

Writing for multiple audiences is difficult, as we must take into consideration readers’ wide range of understanding of and exposure to the issues we face. In addition, we recognize that the world of reporting has fundamentally changed. Information can be accessed by anyone, anywhere. Given the potentially broad reach of our reporting, we have worked to provide the information required by key stakeholder groups while making the text accessible, relevant and easy to understand. 

Scope

Our previous CR reporting focused primarily on activities and data related to the NIKE Brand. For FY10/11 we have taken a broader look across NIKE, Inc. – i.e., incorporating the company’s Affiliate brands. In our reporting, information on manufacturing and labor applies across NIKE, Inc., unless otherwise noted. Other information brings in approaches and strategies that cover Affiliate brands, though at times those strategies are being implemented at a different pace. Throughout our reporting, we note where information refers to NIKE, Inc. as a whole, to the NIKE Brand only or to Affiliate brands in total or individually.

This report covers FY10 and FY11. Unless otherwise noted, all references to dates are made on a fiscal-year basis. Some important events that took place after the close of FY11 are also covered here; their inclusion reflects the impact or influence these events may have on Nike’s future direction.

Reporting Recognition

Our online reporting describes some of the awards, recognitions and listings we have achieved in FY10 and FY11, including the Ceres-ACCA 2010 North American Best Sustainability Report for our FY07-09 reporting. While we participate in some relevant surveys and listings, we recognize that the type and nature of these surveys change each year. We aim to provide accessible and transparent information consistent with our strategy and to use our reporting to drive transparency, rather than to drive toward performing well on surveys or rankings.

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