Supply chain challenge
Nike sees Corporate Social Responsibility (CSR) as a catalyst for growth and innovation – and the company is striving to become a frontrunner in the CSR field. As part of this, and amid growing concerns about the environment, Nike’s goal is to reduce the global carbon footprint of its logistics by 30% by 2020.
As a first step, Nike Europe needed to get a detailed overview of the emissions arising from its logistics activities– and that is where Damco came in.
The solution
We used our advanced Carbon Footprint Calculator to review the emissions from Nike Europe’s supply chain, and in a 12-month pilot, the project provided quarterly reports on a part of the supply chain. The reports measure the carbon footprint of all inbound and outbound transportation via the solution. Damco expertise enables Nike to reduce its logistics carbon footprint. Damco’s SupplyChain CarbonDashboard will help Nike achieve its carbon footprint target by providing an overview of the emissions from all Nike Europe’s transportation activities like Nike’s European warehouse, including ocean transport, aviation, trucking, rail, barge, port operations and consolidation.
Nike also wanted the reports to display specific details, so our project team developed the SupplyChain Carbon- Dashboard, which enables Nike to see its total carbon footprint
The results
With the quarterly reports, Nike is now working strategically to reduce its carbon footprint. The reports give the Nike team a detailed understanding of what causes carbon emissions – and enables them to closely track the effects of any new reduction initiatives. This means:
Thanks to this work, Nike learned that air transportation was one of the main hotspots in its supply chain, and has begun to develop alternatives. Its air reduction programme, for example, has already had an impact by using less air transportation and instead using cleaner alternatives, such as ocean transport. Also, working with Nike, we developed container utilisation Key Performance Indicators (KPIs) that have reduced the number of FFEs shipped to bring down CO2 emissions from shipping. As well as reducing carbon emissions, the initiatives started by Nike have also helped reduce supply chain costs.
This success has led Nike to ask us to look into rolling out the solution on a global scale.
“With Corporate Responsibility being part of Nike Inc’s business processes, it is important to know and reduce our transportation environmental footprint. Damco’s SupplyChain CarbonDashboard enables us to periodically measure and report our transportation carbon footprint, supporting our continuous reduction processes,” says Jurgen Goossens, Strategy Development Program Manager, Nike Europe.
The case study has been done by Damco India Pvt Ltd.
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Nike is determined to reduce the impact that its global operations have on the environment – and so the Nike European Logistics Centre teamed up with Damco to assess Nike’s logistics emissions. Using Damco’s SupplyChain CarbonDashboard, Nike Europe now has a complete overview of all its emissions– by activity, product group and trade lane– and can make the changes required to hit its ambitious environmental goal: a 30% reduction in its global carbon footprint by 2020.
