Two years into detailed development and integration of key indicators and scorecards company-wide; anticipate full roll-out by end of 2007 to formally include social and environmental metrics.

Global logistics staff created a CO₂ model that calculates the emissions for every leg of all international shipments of Nike product from the factory to the first distribution facility. Results are not yet reported.

HIP PRACTICES:
Vision:	Viewing sustainability as a source of innovation and growth for the company, not just as a responsibility. Three core goals: affect systemic change for workers in apparel, footwear and equipment industries; implement sustainable business models; use sport as a tool for youth inclusion. Working toward solid waste elimination from footwear manufacturing, no specific targets public.
Metrics:
Financials:	"ROI2, or Return on Investment-Squared" aligns business and environmental returns into financial statements; immediate focus on waste reduction.
Accountability:	Cross-functional sustainability teams (strategic planning, product creation, manufacturing, market delivery) report to head of sustainability and product design, who report to CEO. Challenges and hiccups in supply chain disclosed broadly to build trust and transparency with global monitoring community and spur industry-wide compliance--"Increasingly we see open source as our mantra." Board sustainability committee meets three times per year, focused mainly on strategy more than metrics. Biannual community responsibility report, "warts and all." Next one due this Spring.
Decision-Making:	"New Source Approval Process" focuses on worker conditions, but not environmental footprint. No factory can come into supply base until approved through NSAP and the Corporate Responsibility team. Cautious to set specific targets too early so they can "get them right." Focused first on building awareness and buy-in at all levels of management.
HIP OUTCOMES:
Health:	Halfway to goals After inspections of working conditions (benefiting or detracting from physical and mental health), approved just 57% of supplier factories in 2004.
Wealth:	Industry leading Rank in top 10% of benefits for employees among "elite" peers in the industry -- enabling employees to save and invest, and access to affordable care and insurance.
Earth:	Needs momentum With World Wildlife Fund's Through Climate Savers collaboration, committed to drop combined CO2 emissions from owned facilities and business travel by 13% by 2005 from a 1998 baseline. In FY01, identified PVC phase-out, organic solvent elimination, organic cotton use and SF6 phase-out targets. 2006 added environmental footprint for waste, water, energy and CO2 emissions across Tier 1 (Nike operated facilities) and Tier 2 (contract factories) operations.
Equality:	Halfway to goals One of the most balanced companies for all staff: 40% minorities, 49% women. However, limited diversity in executive team and Board. Euro/MidEast/Africa region requires 50% of all leadership candidates to be women. Minority- and women-owned suppliers less than 2% of overall procurement.
WHAT'S NEXT:
Practices:	Rolling out integrated ROI scorecard for both impact and profit metrics by year-end 2007. Reeling in suppliers to improve their health, wealth, earth and equality performance.
Outcomes:	Latest eco-shoe launch set to boost revenue and margins, as well as lower-cost burdens on society for waste and landfills.
OTHER RATINGS:
KLD: : Companies are rated from negative (0) to positive (6) in seven areas.	Community: 6.0 Governance: 5.6 Diversity: 3.6 Employees: 4.4 Environment: 6.0 Human Rights: 3.4 Product: 1.2 Included in KLD Indices for: Domini 400, Broad Market Social Index, Large Cap Social Index
Calvert Rating: Companies are rated on a scale of 1 (substantially below Calvert standards) to 5 (superior).	Not published.
RESOURCES:
Sustainability or CSR Report:	Responsibility
Annual Report:	Reports & Filings