How Sustainability Shapes the Future of Sportswear Industry: A Case of Nike

Nike is redefining what it means to create high-performance products with sustainability at the core. In FY23, the company made strides in material innovation, increasing recycled content and reducing waste across its supply chain. In this article, we’ll explore how Nike is advancing its sustainability efforts, drawing insights from its FY23 Impact Report.

Advancing Polyester Sustainability

Polyester is a critical material for Nike, widely used in both footwear and apparel. In FY23, the company increased the use of recycled polyester in apparel by 11 percentage points compared to FY22, reaching 60% polyester by volume. This achievement was made possible through cross-functional collaboration and a strategic focus on incorporating recycled polyester into Nike’s highest-volume apparel products, maximizing impact at scale.

Meanwhile, Converse also made substantial progress, increasing its use of recycled polyester by 91% year over year. The brand continued its transition from virgin polyester to recycled alternatives across its footwear models, reinforcing its commitment to sustainability.

Rubber Innovation for Performance and Sustainability

Rubber plays a vital role in footwear traction and durability, and Nike is actively working to develop high-recycled-percentage formulations that maintain performance while reducing environmental impact. In FY23, the Running Product Creation team collaborated with Chemical Engineering to develop a new regrind rubber formulation for sub-$100 footwear, expanding sustainable options in a key market segment. Other product teams, including Kids, Global Football, and Basketball, also successfully adopted new regrind rubber formulations tailored to their consumer needs.

Converse further expanded its use of Max Grind 40 rubber to 4% (up from 3.5% in FY22) by incorporating Grind technology into additional product lines. However, challenges such as color sorting and aesthetic impacts on lifestyle footwear continue to present hurdles to broader adoption.

Innovating Foam for Performance and Environmental Benefits

Nike continues to rethink foam materials, exploring bio-based replacements and energy-efficient manufacturing processes. A standout innovation in FY23 was the introduction of Nike ReactX foam, which launched in fall 2023. By shifting from compression molding to an injection process, ReactX foam delivers 13% greater energy return while reducing the carbon footprint of midsoles by at least 43% compared to the original React foam. This balance between performance and sustainability highlights Nike’s commitment to innovation without compromise.

Sustainable Cotton and the Path to Circularity

Cotton remains an essential material in Nike’s apparel portfolio, particularly as consumer demand for lifestyle products increases. The company supports its organic cotton strategy through a 10% blending program, positioning itself among the top global users of organic cotton. In FY23, Nike maintained consistent percentages of different cotton types while staying three percentage points ahead of its 2025 target volume for organic cotton.

The company is also advancing its recycled cotton strategy, with roadmaps in place to expand adoption in the coming years. While mechanical limitations, sourcing complexities, and high costs remain challenges, Nike is committed to scaling closed-loop recycling processes to drive further progress.

Evolving Leather Sourcing and Alternatives

To reduce the environmental impact of leather, Nike prioritizes sourcing from best-in-class suppliers while expanding the use of synthetic and recycled synthetic leather in key lifestyle models. Next Nature versions of the Dunk, Air Force 1, and Court Vision exemplify this shift. Additionally, enhancements in data tracking and operational efficiencies have helped lower carbon emissions associated with leather sourcing.

Minimizing Waste Across the Supply Chain

Preventing waste is Nike’s top priority, as it offers both environmental and economic benefits. In FY23, the company prevented more than 13 million kilograms of waste through reduction initiatives across its value chain. Nike continues to refine its approach by optimizing material efficiency, increasing reuse rates, and fostering industry collaboration to track and manage waste.

Manufacturing Waste Reduction

Manufacturing remains a key area of focus for waste prevention. In FY23, Nike expanded its bottom-component defect tracking system to facilities responsible for 80% of this waste type, up from 50% in FY22. Improved quality control and supplier engagement led to a 38% reduction in midsole defects, preventing approximately 3 million kilograms of waste in FY23 alone.

Packaging and Distribution Efficiency

At Nike distribution centers, 80% of waste comes from corrugated packaging. While recyclable, its growing volume necessitates reduction efforts. Nike’s master outer carton (MOC) light-weighting initiative scaled from 30% to 50% of all footwear MOCs in FY23, reducing corrugate waste by 7.5 million kilograms.

Shoebox optimization was another area of focus, with Nike introducing two new box sizes to improve right-sizing and reducing specialty packaging use. The elimination of toe stuffing in 42% of footwear lines further reduced packaging waste by over 2 million kilograms.

Achieving Waste Diversion and Recycling Milestones

Nike sustained 100% waste diversion from landfill for footwear for the third consecutive year and achieved the same milestone for apparel. The company increased its recycling rate for footwear and apparel manufacturing waste from 60% to 64% in FY23, reinforcing its zero-waste ambition.

Closed-Loop Recycling: Polyester remains a key material in Nike’s closed-loop recycling efforts. In FY23, three suppliers began sending polyester textile scraps to a new vendor for processing into PET chips, which are then used to produce new yarns and fabrics. This initiative marks a significant step in reducing reliance on virgin materials.

Open-Loop Recycling: Seven material types—rubber, mixed textiles, leather, synthetic leather, laminated foam, EVA foam, and cardboard—account for 75% of Nike’s total footwear waste. By fostering new recycling markets and technologies, Nike is driving progress toward its zero-waste goal.

Looking Ahead

Ongoing advancements in recycled materials, waste reduction, and sustainable sourcing reinforce Nike’s role as a leader in responsible product creation. The company continues to set new industry standards, proving that innovation and sustainability go hand in hand.