Better Health for All

Nike's core business of athletic footwear and apparel promotes physical activity, a key aspect of health. The company launched the Well Collective, which includes over 1,000 new global fitness trainers and collaborations with medical professionals, focusing on holistic fitness.

Nike invested over $50 million to address physical inactivity, encouraging early positive experiences for children. During the COVID-19 pandemic, Nike collaborated with health professionals to produce and donate over 360,000 units of personal protective equipment (PPE) to approximately 30 US hospitals and healthcare providers, supporting frontline healthcare workers. Nike also made $8.9 million in new investments across 53 nonprofit organizations supporting better health outcomes in Black communities and granted over $8 million through its N7 Fund since 2009 to Native American and Indigenous communities for essential healthcare needs and physical activity. The company's products do not have significant negative health impacts or addiction potential. Nike does not offer health-related products requiring price accessibility or risk transparency, nor does it operate in pharmaceutical, food, or clinical trial sectors.

Fair Money & Economic Opportunity

Nike Inc. is primarily an athletic footwear and apparel company and does not operate as a financial institution offering lending or deposit services to consumers. Consequently, most Key Performance Indicators (KPIs) related to financial products, pricing, fees, customer financial outcomes, and regulatory compliance for financial services are not applicable to its core business model, resulting in a score of 0 for these KPIs. While Nike has made investments in nonprofit organizations for economic empowerment, such as $8.9 million in 53 nonprofits

and $500,000 in Black Girl Ventures, the articles do not provide these figures as a percentage of annual pre-tax profit, which is required to score the 'profit_reinvestment' KPI. Therefore, this KPI is omitted due to insufficient data.

Fair Pay & Worker Respect

Nike has faced significant labor-related issues within the past three years. In 2023, the company faced accusations of owing $2.2 million in unpaid wages to 4,000 garment workers in Cambodia

. Additionally, in the same year, Nike was subject to a class-action lawsuit in California alleging multiple labor law violations, including improper wage payments, insufficient breaks, and discrimination .

Fair Trade & Ethical Sourcing

Nike's Supplier Code of Conduct requires adherence to ILO core labor standards, including the elimination of forced labor, and prohibits workers from paying for jobs.

In FY24, audit non-compliances for forced or compulsory labor were reported at 0.8% for Tier 1, 1.1% for Tier 2, and 2.9% for distribution centers. Non-compliances related to worker fees were revealed in high-risk countries such as Malaysia, Jordan, and Taiwan. A 2024 Fair Labor Association investigation found evidence of retaliation against a worker at a supplier for seeking compensation for unpaid leave, with remediation plans extending to December 2025. For facilities with below-compliance ratings, Nike expects remediation within six months (180 days), though Tier 2 material suppliers are expected to take over a year. Nike publicly discloses Tier 1 and Tier 2 material supplier facilities, with approximately 90% of total footwear upper materials and apparel textile production (Tier 2) having expanded scope in FY21. 52% of Nike's cotton inputs are third-party certified. In FY23, Nike spent $1.4 billion with diverse-owned suppliers. In September 2024, shareholders voted against proposals for binding agreements on human rights and forced labor, with management citing existing controls.

Honest & Fair Business

Nike has faced several ethical and compliance challenges. In September 2024, investors pressured the company regarding working conditions in garment factories and corporate governance

. An investigation was opened in July 2023 into the alleged use of forced Uyghur labor in its supply chain . In May 2023, Nike was sued for greenwashing, with claims that 90% of products marketed as sustainable did not use recycled materials or used environmentally harmful ones . Also in May 2023, reports indicated potential misclassification of thousands of temporary office workers, which could lead to over $530 million in tax fines . The company faced criticism in April 2023 for tax avoidance, including paying no federal income tax on nearly $2.9 billion in 2020 income . In response to supply chain concerns, Nike expanded its CUMULUS Forced Labor Screen and launched a Foreign Migrant Worker Enhanced Due Diligence program in July 2023 . The company also updated its Supplier Code of Conduct in May 2021 and, in fiscal year 2023, spent $1.4 billion on diverse suppliers, aiming for 100% strategic suppliers to improve worker engagement .

Kind to Animals

Nike has replaced 31% of its total leather use with synthetic leather.

The company ceased using kangaroo skins by the end of 2023 and banned exotic skins in 2010. Nike has committed to sourcing wool certified by the Responsible Wool Standard (RWS), which excludes mulesing. The company also prohibits sourcing down from live-plucked birds or the foie gras industry, and requires humane practices for Angora rabbit wool, precluding live plucking. Additionally, Nike restricts sourcing animal skins from the Amazon, Cerrado, or Gran Chaco biomes.

No War, No Weapons

Nike's supply chain for conflict minerals (tin, tantalum, tungsten, and gold) shows that 97% of known smelters and refiners were conformant with responsible sourcing standards for the 2024 reporting period.

The company conducts an annual survey of its supply chain, with 100% of covered suppliers providing completed Conflict Minerals Reporting Templates. Nike publishes an annual Conflict Minerals Report, which relies on independent third-party audits of smelter and refiner due diligence practices. Furthermore, Nike aligns with the UN Guiding Principles on Business and Human Rights, and its responsible supply chain strategy is informed by these principles, with annual Modern Slavery Act statements issued for its UK, Australian, and Canadian operations.

Planet-Friendly Business

In 2023, Nike sourced 96% of the energy for its owned and operated facilities worldwide from renewable sources

. The company also diverted 100% of waste from landfills in its Tier 1 manufacturing facilities, with 80% of that waste recycled into Nike products and other goods . By 2023, Nike achieved a 69% reduction in greenhouse gas emissions from its owned or operated facilities compared to a 2015 baseline, surpassing its initial target of 65% . Additionally, 78% of Nike, Jordan, and Converse products contained recycled materials as of 2023 .

Respect for Cultures & Communities

Nike's N7 Fund has invested in more than 300 organizations supporting Indigenous communities, including Native Hawaiian, Native American, First Nations, and Alaska Native youth

. The N7 Fund has also awarded grants to 259 Native American and Aboriginal communities . Additionally, Nike has partnered with the Institute of American Indian Arts and collaborates with NFL clubs to fund programs for Indigenous youth, working with local Indigenous nonprofits . There are no reported cultural appropriation incidents.

Safe & Smart Tech

Nike's app collects and shares sensitive customer data, including personal photos and information regarding sexual orientation, with third parties, indicating excessive data collection beyond business needs

. A 2020 lawsuit also accused Nike of using session replay software to record keystrokes and mouse clicks without user consent on its e-commerce site . These practices suggest minimal user control over personal data, a consistent deprioritization of privacy in product development, and few incidents of unauthorized data use. Such actions also point to basic compliance with major privacy regulations but with gaps. In contrast, Nike has adopted 'Algorithmic Bias Safeguards' to reduce data and algorithmic bias in HR decisions , evaluated through 55 questions across 13 categories , demonstrating a strong prevention focus for algorithmic harms and a formal AI ethics policy with active bias monitoring for major systems.