Nike Slashes Emissions, Revenue Up 1% Despite Cost Pressures
Nike has announced significant progress in its sustainability efforts while reporting a mixed financial performance. The sportswear giant has slashed its greenhouse gas emissions and increased its use in renewable energy.
Nike's Scope 1 and 2 emissions have plummeted by 69-73% since 2015, with total Scope 3 emissions down 29% since 2020, reaching 8.2 million metric tons of CO2e in 2024. The company has joined forces with major corporations like Apple, Google, and IKEA in climate coalitions like RE100 to achieve 100% renewable electricity.
In the fiscal first quarter of 2025, Nike's revenue grew marginally by 1% to $11.72 billion, while net income dropped by 31% to $727 million. Gross margin fell to just over 42% due to persistent cost pressures. Despite this, Nike's stock rose 1.5% post-earnings, indicating investor confidence in the company's long-term strategy.
Nike's sustainability initiatives include sourcing 40% of its polyester from recycled materials and reducing air freight by 80% since 2020. The company aims to ship half of its products by ocean freight by 2025. By 2030, Nike targets a 65% reduction in absolute Scope 1 and 2 emissions and a 30% cut in Scope 3 emissions compared to 2015 levels.
Nike's commitment to sustainability is evident in its ambitious emission reduction targets and increasing use of renewable energy. Despite facing cost pressures, the company's stock price reflects investor confidence in its long-term strategy. As Nike continues to make strides in sustainability, it joins other major corporations in the fight against climate change.
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