Stepping into Sustainability: A Case Study on Nike’s Circular Economy Initiatives, Operational Strategies, and Societal Impact
I have completed a course on Interaction Design Foundation called “Design for a Better World with Don Norman”.
Where I learned about the circular economy and its positive impact on the economy and nature. I wrote a case study on Nike’s circular economy practice as part of the course.
Nike is committed to creating a circular economy for its products. This means designing products that can be reused, recycled, or composted at the end of their life. Nike is also working to reduce its use of virgin materials and to increase its use of recycled materials.
What makes it circular?
Using recycled materials: Nike is committed to using 50% recycled materials in all of its products by 2025. The company has already made progress on this goal, and in 2021, recycled polyester made up 38% of Nike footwear’s total polyester usage.
Designing for longevity: Nike is designing its products to last longer both in terms of durability and style. This will help to reduce the need for frequent replacements and extend the product lifecycle.
Repair and refurbishment: Nike offers repair and refurbishment programs for customers to extend the life of their products. These programs allow customers to send back worn-out shoes or apparel to be repaired or refurbished for resale.
Nike Grind: Nike Grind is a program that turns old athletic shoes and manufacturing scraps into recycled materials. These recycled materials are then used to create new products, such as Nike Grind shoes and Nike Grind flooring.
Closed-loop manufacturing: Nike is exploring closed-loop manufacturing processes where old products are used as inputs for creating new products. This would reduce the reliance on new resources and minimize waste.
Benefits
Nike’s circular economy initiatives have a significant impact across various dimensions:
Environmental Impact: By incorporating recycled materials and implementing closed-loop manufacturing, Nike reduces the demand for virgin resources and minimizes waste. This leads to a lower carbon footprint, reduced water usage, and decreased overall environmental strain.
Waste Reduction: Repair and resale programs, along with initiatives like Nike Grind, extend product lifecycles and divert items from landfills. This contributes to decreased waste generation and promotes a more sustainable waste management approach.
Resource Conservation: The use of recycled materials and closed-loop manufacturing conserves valuable resources like petroleum and minerals, as well as reduces energy consumption required for producing new materials.
Innovation and Research: Nike’s circular practices drive innovation in sustainable materials and production methods. This fosters research and development of new technologies that can benefit not only Nike but the broader industry.
Economic Opportunity: Circular practices open up new business opportunities, such as refurbished and recycled product lines. These initiatives can lead to additional revenue streams and diversification of Nike’s product offerings.
Social Impact: Nike’s circular economy efforts contribute to improved labor conditions and ethical practices within its supply chain. This positively impacts workers’ lives and supports fair labor practices.
Consumer Engagement: Sustainability initiatives resonate with environmentally conscious consumers, enhancing brand loyalty and attracting a growing market segment seeking eco-friendly products.
Industry Leadership: Nike’s commitment to circular practices sets an example for the sportswear industry, encouraging competitors and peers to adopt similar sustainable strategies.
“Attention is the rarest and purest form of generosity” — — Simone Weil —
Thank you for your Attention
Resources I collected from:
https://about.nike.com/en/impact/focus-areas/protecting-the-planet
