Nike Inc

Textiles & Apparel

Company Summary

Nike, Inc. is a global sportswear company recognized for its efforts to integrate sustainability across its operations. The company markets apparel and has set ambitious targets for carbon neutrality, renewable energy use, and utilizing sustainable materials in its products. Nike’s ESG rating reflects its positive environmental contributions, particularly in sustainable fashion and its focus on reducing carbon emissions. However, Nike has faced criticism regarding labor practices in its supply chains, especially concerning working conditions in developing countries. These issues, combined with the environmental impact of overproduction and plastic waste, continue to affect Nike’s ESG score. Despite these challenges, Nike remains focused on social responsibility and sustainable fashion. For more information, refer to the Nike ESG report. Nike ESG rating is updated every month, with scores provided by leading ESG ratings agencies. The company’s ESG risks are generally considered low, and it ranks well among industry peers in the luxury goods industry. Its ESG scores reflect performance on various material issues, such as data privacy, cybersecurity, human capital, and corporate governance. Despite this, Nike faces controversy, particularly around supply chain and labour relations. NIKE, Inc. also has set goals for emissions reduction by 2050, aligning with the Paris Agreement. The company sells sports apparel and products through digital platforms and physical retail accounts, including athletic specialty stores, across multiple categories, including sports apparel, footwear, accessories, socks, eyewear, gloves, and other equipment. Nike’s subsidiaries, like Converse, operate within several segments, including skate, golf, and luxury goods.

ESG Rating Overview

Sustainalytics

Overall ESG Rating :

18.7
Rating Scale
0-10Negligible10-20Low20-30Med30-40High40+Severe
Ranking
Industry Group
Textiles & Apparel134 out of 217
Universe
Global Universe4039 out of 16215

Overall ESG Rating :

73
Rating Scale
0-25Poor 25-50Satisfactory 50-75Good75-100Excellent
0100E84S88G39

Overall ESG Rating :

BB
Rating Scale
CCCB
Laggard
BBBBBA
Average
AAAAA
Leader

Nike is Average among 105 companies in the textiles, apparel & luxury goods industry.

Temperature Rise :

1.5℃
CLIMATE SCALE
≥ 3.85°CLagging > 2°C - < 3.85°CMisaligned ≤ 2°CAligned

News from Nike Inc

FAQ

What is Nike's ESG rating?

Nike holds an A rating from MSCI and is rated Medium Risk by Sustainalytics. The company is praised for its environmental efforts but still faces challenges regarding labor practices in its supply chain.

How does Nike manage ESG risks?

What sustainability initiatives has Nike implemented?