Two years ago, Nike began collaboration with five companies that contract with Nike to more fully integrate energy efficiency into their operations. The companies are part of MLS (Manufacturing Leadership), a group of strategic partner factory groups that Nike works with regularly on business and corporate responsibility issues. Each company operates multiple factories. Together, the factories represent more than half of Nike's footwear production base, and account for 60 percent of resulting carbon emissions from the manufacture of the company's trademark footwear lines.
The project aims to link environmental and efficiency goals by focusing on both a reduction in carbon emissions and a reduction in overall energy use. The approach is strongly integrated into the factories' adoption of widespread lean manufacturing processes. In its essence, it is redefining the elimination of wasted energy as both a value proposition and a cost-cutting measure.
To establish a baseline, Nike conducted an energy-efficiency study of each facility, analyzed energy use, and created training programs with detailed targets. Nike also recommended specific equipment replacements to outdated steam and boiler systems as well as improved maintenance. A dedicated energy manager at each facility was tasked with following through on suggested changes. In addition, each manager developed a team of staff members to assist in ongoing program management. In a little less than a year, the project saw an average of nearly 10 percent energy savings in the participating facilities. Factory response to the time, cost and energy savings has been enthusiastic, and Nike plans further engagements with other contract manufacturing groups.
Nike is committed to partnering with our contracted manufacturers to help them strive toward continual improvement in energy savings, carbon emissions and manufacturing efficiency. Some of the best improvement opportunities come with the construction of entirely new "greenfield" facilities.
To help envision the "factory of the future," Nike held a design charrette in December 2008 with two contract factories and again in April 2009 with another contract factory to assess how to achieve these goals. The charrette included general contractors, architects, green design consultants, construction representatives and lean process managers from Nike and the factories who literally drew up a blueprint for an optimal factory design. Of the designs envisioned, one has officially been registered to become Leadership in Energy and Environmental Design (LEED)-certified project. Nike looks forward to sharing these concepts with other factories in the years to come to further push the boundaries toward building the most efficient factories possible.