Creating Sustainable Models for Consumption and Growth. Nike's commitment is to create extraordinary performance products for athletes while managing our business within nature's limits. We anticipate a future that seeks out and rewards new models of consumption and growth, separated from material consumption. It's a transition from build, buy and bury - the common business model today - to a future of sustainable business models for consumption and growth.
As we embark on this journey, it's clear to us that government will play an important role. Not only in setting the policy framework and legislative environment for emerging business models and sustainable products but also as a key partner to help drive innovation, collaboration and partnership with other stakeholders in the clothing and footwear sectors.
Our engagement with government on sustainable consumption and growth is still evolving as we, and others in our industry, face up to these new challenges. However, we already have an agreed set of policy objectives:
Government policy on sustainable business models for our sector is still emerging, posing both an opportunity and a challenge. The examples below illustrate Nike's commitment to partner with government and take a leadership role to help drive change and policy outcomes aligned with our Considered goals.
United Kingdom - Sustainable Clothing Action Plan. Since early 2008, Nike has been a lead member of the United Kingdom's (U.K.) Sustainable Clothing Action Plan (SCAP). Through SCAP, we are partnering with the U.K. government to improve the environmental and social impacts of the clothing supply chain. SCAP launched in February 2009 at Estethica, London Fashion Week's sustainable fashion show. Main areas of focus for the action plan are the reuse, recycling, and development and use of sustainable fibers.
Nike is working with several SCAP project teams to provide data, best-practice examples and expertise on materials analysis and assessment, and to share Nike's Considered Design principles. Nike also shares the goal of combining innovative sustainable design, development and manufacturing practices to create performance products for athletes with other SCAP stakeholders. We have also been involved strategically, through our membership of the SCAP Steering Group and by committing to a number of key deliverables by 2010.
Nike believes this partnership is a valuable opportunity to work together with all stakeholders in the apparel industry and to share best practice and learnings. We are also building a stronger relationship with the U.K. and European governments as they consider legislation that will shape the future of the clothing industry in areas such as recycling, environmental labeling, consumer awareness and sustainability. Nike clearly supports these policy goals and we believe that through this kind of partnership we can help create market-based, realistic solutions to drive greater sustainability throughout our supply chain.
Brazil Amazon Biome - Leather Sourcing Policy. In June 2009 Nike was approached by the international environmental group Greenpeace about leather sourcing from the Brazilian Amazon Biome. Greenpeace had just issued an extensive report detailing how cattle farming in the Amazon Biome basin caused significant deforestation issues, a leading cause of Brazil's contribution to climate change. Greenpeace asked Nike and other companies to join it in agreeing to stop working with leather suppliers who were unable to ensure that their cattle farms in their supply chain were not located on deforested, indigenous or protected lands. Nike signed on to Green Peace's Commit or Cancel policy and is currently working with Greenpeace, the Brazilian Government, our suppliers and other brands through the Leather Working Group to deliver an effective traceability program to meet the goals of zero deforestation.