Preamble

NIKE, Inc. shares the widely-held view that climate change is a serious issue requiring immediate and meaningful action across government, industry, consumers and society. Nike, Inc. has made cutting greenhouse gas emissions across our operations, incorporating sustainability into the design of our products and reducing our overall environmental footprint a cornerstone of our sustainability efforts.

To this end, Nike takes seriously the issue of deforestation in the Amazon basin. We understand how important rainforests are to health of the planet and the implications deforestation has on climate change and global warming.

Nike has set clear goals to reduce our own environmental footprint and we continue to act to uphold those goals in our supply chain. The below policy sets forth Nike's requirements for transparency and traceability for Brazilian leather supplied for Nike products.

In addition, Nike believes this is also a broader supply chain issue, requiring the involvement of all stakeholders to effect significant positive change. Nike will continue to work with the industry's Leather Working Group, Greenpeace and other stakeholders to address this issue across the supply chain and, moving forward, we will also require all suppliers of leather for Nike product to join the Leather Working Group by December 2009.

Our intention is for this policy to expire once a reliable system of governance is in place, with full traceability of cattle products and a guarantee that those products are not causing deforestation in the Amazon Biome.

To this end, Nike commits to the principles of Greenpeace's 'Commit or Cancel' policy with the enrolled explanations of how Nike intends to comply with the policy.

Policy
NIKE, Inc. (Nike) will not use leather in its products produced from cattle raised in the Amazon Biome as defined by IBGE

Nike will require suppliers of Brazilian leather to certify, in writing, that they are supplying leather for Nike Inc products from cattle raised outside of the Amazon Biome.

Suppliers of Brazilian leather for Nike products have until July 1, 2010 to create an ongoing, traceable and transparent system to provide credible assurances that leather used for Nike products is from cattle raised outside of the Amazon Biome. On a quarterly basis Nike will review suppliers' progress in establishing an ongoing, traceable and transparent system.

If, after July 1, 2010, suppliers are unable to provide credible assurances that leather used for Nike products is from cattle raised outside of the Amazon Biome, Nike will consider increasing the exclusion area to include all of the Amazon Legal (as defined by IBGE).

Raised - refers to cattle's entire life.
IBGE - Brazil's National Institute of Geography and Statistics.
Amazon Biome - Amazon rainforest and its related ecosystem)
Amazon Legal - The entirety of the nine Brazilian states that contain portions of the Amazon Biome (Acre, Amazonas, Roraima, Amapá, Pará, Rondônia, Mato Grosso, Tocantins and Maranhão )
NIKE, Inc. - includes its subsidiaries: Cole-Haan, Converse Inc , Hurley International LLC, & Umbro Ltd.