Nike unveils 29 Purpose 2025 Targets
Image credit: Nike
On Thursday, Nike released its FY20 Impact
Report—which detailed the
sportswear giant’s progress on and achievement of a set of 2020 sustainability
targets. With it, the company unveiled a set of 29 new, Purpose 2025
Targets that, according
to CEO John Donahoe, “aren’t just aspirations
— they outline clear goals, action plans and accountability.” As Donahoe details
in an accompanying
letter:
“We are redefining what responsible leadership looks like. For the first time,
we will tie executive compensation to Nike’s progress in deepening diversity and
inclusion, protecting the planet, and advancing ethical manufacturing.”
Nike has long led the sportswear industry in environmental sustainability —
particularly when it comes to materials innovations and circular
design.
But the company has long been criticized for promoting the power of sport and
athletes — many of them Black — and issuing strong statements of support for
Black Lives Matter, Colin
Kaepernick
and racial equality at large, without reflecting that ethos within its own
organization; as of 2019, less than 10 percent of its 300-plus VPs worldwide
were
Black.
DEI and sustainability: The ROI of inclusive corporate cultures
Join us as leaders from the Accomplis Collective, Bard, Beneficial State Foundation, ReEngineering HR and REI share best practices for cultivating a culture of belonging and insights into how inclusive leadership can lead to more effective and equitable sustainability outcomes — Wednesday, Oct. 16, at SB'24 San Diego.
When called out again for this disparity during the racial unrest of 2020,
Donahoe owned up, saying in a
statement:
“During this past year, we've stepped up our own efforts and measures of
accountability in the areas of diversity, inclusion and belonging to foster an
inclusive environment and attract a more diverse workforce.”
Now, along with a healthy set of goals around improved environmental
performance, a set of Purpose 2025 goals are tied to diversity and inclusion —
specifically, around Representation & Hiring, Inclusive Culture &
Engagement, and Business Diversity & Inclusion — and Nike execs’ bonuses
will now reflect progress on that front.
“Our brand would not be what it is today without the powerful contributions of
Black athletes and Black culture. And our belief in human potential inspires us
to lead in addressing equality’s most persistent barriers.”
For Nike, this includes supporting organizations focused on advancing racial
equality in the US — including a combined $140 million commitment from Nike,
Converse, Jordan Brand, and Michael Jordan.
“We are also focused on building a diverse, inclusive team and culture, one in
which all voices are welcomed and heard,” Donahoe adds. “This culture of
belonging reflects the diversity of the athletes we honor, the people who love
our products, and the communities we serve.”
We’re looking forward to seeing Nike’s progress on this front.
New metric ties Chipotle executive compensation to ESG goals
Image credit: Chipotle
Meanwhile, last week Chipotle Mexican Grill announced that it has introduced
a new Environmental, Social and Governance (ESG) metric that ties executive
compensation to ESG goals. Starting this year, 10 percent of execs’ annual
incentive bonus will be tied to the company’s progress toward achieving goals in
the areas of Food & Animals, People, and the Environment — holding
Chipotle’s executive leadership team responsible for making business decisions
that cultivate a better world.
“We are passionate about inspiring real change in people, food, and the
environment every day,” said Laurie Schalow, Chief Corporate Affairs & Food
Safety Officer. “The compensation plan ensures our leaders continue to set the
right example for our more than 88,000 employees, while fulfilling our mission
to drive change and Cultivate a Better World.”
Going forward, Chipotle’s executive leadership team will be evaluated on the
company’s progress toward the following, overarching company goals:
-
Food & animals — In an effort to support more sustainable small farms,
Chipotle is committed to increasing pounds of organic, local, and/or
regeneratively grown/raised food used in its restaurants year over year. For
example, as part of the launch of its first-ever Super Bowl
ad,
Chipotle committed $5 million over the next five years to help invigorate
struggling farmers. The company also introduced a Virtual Farmers Market to
help create additional revenue streams for its suppliers amid COVID-19; and
has worked with the National Young Farmers Coalition to offer education,
scholarships, grants, and three-year contracts to young farmers.
-
People — Chipotle has set out to maintain both racial and gender pay
equity. It is also implementing a program to accelerate the development of
diversity and support employees for promotion to above-restaurant and
next-level roles — underscoring the company’s commitment to development and
advancement for diverse employees.
-
Environment — Originally announced for 2025, Chipotle has moved up its
goal to publish its Scope 3
emissions
— in addition to Scope 1 and 2, which it publishes in its annual
Sustainability Report and Report Update — by the end of 2021. The goal is
part of Chipotle’s larger movement to increase transparency surrounding its
carbon emissions and its food’s overall environmental impact. In the fall of
2020, Chipotle became the first brand to provide detailed impact data about
its ingredients for guests when it launched Real
Foodprint
on the Chipotle app and Chipotle.com. Real Foodprint compares average values
for each of Chipotle’s real ingredients to their conventional counterparts
against five key metrics: Less Carbon in the Atmosphere, Gallons of
Water Saved, Improved Soil Health, Organic Land Supported, and
Antibiotics Avoided.
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Sustainable Brands Staff
Published Mar 12, 2021 7am EST / 4am PST / 12pm GMT / 1pm CET