Summary Findings

• Female Representation: Achieved 51% female representation in the global corporate workforce, surpassing the 50% target for the second consecutive year, though slightly down from 51.1% in FY22.
• Leadership Roles: Maintained 44% female representation in leadership roles, consistent with FY22, on track to meet the 45% target by FY25.
• Ethnic Minority Representation: Increased U.S. racial and ethnic minority representation to 41%, exceeding the 35% target for FY25, up from 39% in FY22.
• Leadership Diversity: Achieved 34% representation of ethnic minorities at the director level and above, surpassing the 30% target.
• Employee Engagement: Employee engagement scores improved to 80%, but remain below the industry benchmark of 84%.
• Diversity Initiatives: Invested $800K in professional development for racial and ethnic minorities and women, and committed $10 million over five years to HBCUs and HSIs.
• Supplier Diversity: Surpassed $1 billion in spending with diverse-owned suppliers, reaching $1.4 billion in FY23.
• Human Rights Challenges: Ongoing concerns regarding forced labor in the supply chain, necessitating enhanced monitoring and compliance measures.

Peer Comparison

• Female Representation: Nike leads with 51% female representation in its workforce, surpassing its 50% target, while On Holding, Anta Sports, and Deckers Outdoor lag behind with no clear targets or lower percentages.
• Leadership Diversity: Nike’s female leadership representation is steady at 44%, with a target of 45% by FY25, while On Holding shows significant improvement to 54.7%.
• Ethnic Minority Representation: Nike achieved 41% ethnic minority representation, exceeding its 35% target, but falls short compared to Deckers Outdoor’s 59.9%.
• DEI Initiatives: Nike’s comprehensive DEI strategy includes significant spending on diverse suppliers and mentorship programs, outperforming peers like Anta Sports and Deckers Outdoor.
• Employee Engagement: Nike’s engagement scores increased to 80%, but remain below industry benchmarks, while On Holding and Deckers Outdoor report higher participation rates.
• Community Investment: Nike invested $142.7 million in community support, significantly outpacing On Holding, Anta Sports, and Deckers Outdoor.
• Human Rights Controversies: Nike has faced human rights controversies related to forced labor, contrasting with On Holding, Anta Sports, and Deckers Outdoor, which have maintained cleaner records.

Controversies

• The company has been involved in human rights controversies, particularly related to forced labor, as indicated by identified risks in its supply chain and the establishment of compliance standards and collaborations aimed at addressing these issues.
• The biggest challenges with diversity and inclusion at NIKE include the need for improved representation of racial and ethnic minorities, continuous education for leaders on diverse supplier initiatives, and addressing systemic barriers that limit opportunities for diverse suppliers.

Company Performance

DEI Targets

• ahead of target: The company has set a target of 50% for female representation across its global corporate workforce, achieving 51% in FY23, which is a slight decrease from 51.1% in FY22, but still surpasses its target for the second consecutive year.
• on track: Nike has set a target of 45% female representation in leadership roles by FY25, achieving 44% in FY23, which is unchanged from FY22.
• ahead of target: The company has set a target of 35% for ethnic minority representation across the entire U.S. workforce by FY25, and it has achieved 41% in FY23, an increase from 39% in FY22, indicating significant progress towards its diversity goals.
• ahead of target: The company set a target of 30% for ethnic minority representation in leadership roles, achieving 34% in FY23, which is a slight increase from 33% in FY22.

DEI Initiatives

• The company is actively advancing its diversity, equity, and inclusion initiatives through a comprehensive strategy that includes achieving 41% representation of U.S. racial and ethnic minorities, a perfect score on the Disability:IN Equality Index, a successful DEI Mentorship Program, and exceeding its 2025 goal by spending $1.4 billion with diverse-owned suppliers.
• The company measures employee engagement through various surveys, showing a gradual improvement in engagement scores from 79% to 80% in FY23, although still below industry benchmarks, while also achieving 100% measurement of engagement among strategic suppliers, reflecting a strong commitment to enhancing employee experience over the years.
• Nike provides comprehensive employee benefits that promote diversity and inclusion, including unlimited fertility treatment cycles, adoption and surrogacy coverage, enhanced transgender healthcare benefits with travel support, and travel coverage for abortion services, all of which are highly valued by 95% of their employees.
• The company actively supports diversity and inclusion through employee resource groups, has achieved 41% representation of U.S. racial and ethnic minorities, and has received high recognition for its efforts in disability inclusion and LGBTQ+ equality.
• Nike is actively investing in diverse talent through its DEI strategy, achieving 41% representation of U.S. racial and ethnic minorities, targeting $800K in professional development for underrepresented groups, and exceeding its goal of spending $1.4 billion with diverse-owned suppliers.
• Nike is actively sponsoring education programs for under-represented groups by investing $10 million over five years in HBCUs and HSIs, delivering $2.95 million in FY23, and engaging in on-campus events to support diverse students.
• Nike is actively giving back to local communities by investing $142.7 million in community support, facilitating employee donations through their Give Your Best platform, and empowering employees to select grant recipients through the Community Impact Fund, thereby fostering a culture of giving and social responsibility.

Supplier monitoring

• NIKE is effectively monitoring supplier diversity and inclusion through its Business Diversity and Inclusion program, having exceeded its $1 billion spending goal with diverse-owned suppliers by reaching $1.4 billion in FY23, while implementing representation targets for strategic suppliers and training programs to promote gender equity.
• NIKE effectively monitors its suppliers for human rights and living wage compliance through regular audits, collaboration with organizations to address worker concerns, the implementation of the Engagement and Wellbeing program, and adherence to the Employer Pays Principle, ensuring ethical treatment of workers.
• The company is actively monitoring its suppliers for forced labor and child labor through enhanced due diligence assessments, collaboration with the Responsible Business Alliance and Verit, Inc., the implementation of the Specialty Validated Assessment Program in high-risk countries, the use of the CUMULUS Forced Labor Screen for proactive screening, and adherence to the Employer Pays Principle to prevent workers from paying fees for employment.

Controversies

• The company has been involved in human rights controversies, particularly related to forced labor, as indicated by identified risks in its supply chain and the establishment of compliance standards and collaborations aimed at addressing these issues.
• The biggest challenges with diversity and inclusion at NIKE include the need for improved representation of racial and ethnic minorities, continuous education for leaders on diverse supplier initiatives, and addressing systemic barriers that limit opportunities for diverse suppliers.

Peer Comparison Details

DEI Targets

• What targets have they set on female representation across the whole workforce (NOT leadership positions)? How does it compare to last year?
  • better than On Holding: On Holding has seen an increase in female representation across its entire workforce, rising from 46.9% in 2022 to 48.5% in 2023. This indicates a positive trend towards gender diversity. In contrast, Nike has set a target of 50% female representation and achieved 51% in FY23, although this reflects a slight decrease from 51.1% in FY22. While Nike surpasses its target, On Holding is making progress but lacks specific future goals for female representation.
  • better than Anta Sports: Anta Sports currently has 24.8% female representation across its total workforce, with no explicit target for overall female representation. In contrast, Nike has set a target of 50% and achieved 51% in FY23, although this reflects a slight decrease from 51.1% in FY22. While Nike has consistently surpassed its target, Anta Sports is significantly behind in overall female representation, despite showing progress in female executives. Nike’s commitment to gender representation remains stronger than that of Anta Sports.
  • better than Deckers Outdoor: Deckers Outdoor does not provide specific targets for female representation across its entire workforce, focusing instead on leadership roles, where 49% of director-level and above employees are female. In contrast, Nike has set a target of 50% female representation across its global corporate workforce and achieved 51% in FY23, a slight decrease from 51.1% in FY22. Nike’s performance indicates a commitment to gender representation, surpassing its target for the second consecutive year.
• What targets have they set on female representation in leadership roles ONLY? How does it compare to last year?
  • better than On Holding: On Holding has shown significant improvement in female representation in leadership roles, increasing from 44.5% in 2022 to 54.7% in 2023. In contrast, Nike’s female representation in leadership remained steady at 44% for both FY22 and FY23, with a target of 45% by FY25. While Nike is on track to meet its target, On Holding’s substantial increase highlights a more aggressive approach to enhancing female leadership representation.
  • better than Anta Sports: Anta Sports has set targets of 30% female representation on the Board and over 40% in director-level positions by 2030. As of December 31, 2023, they achieved 36.6% female executives, up from 36.1% in 2022, indicating progress. In comparison, Nike aims for 45% female representation in leadership by FY25, achieving 44% in FY23, consistent with the previous year. While both companies are committed to gender diversity, Anta Sports shows a positive year-over-year trend, while Nike’s representation has remained stable.
  • better than Deckers Outdoor: Deckers Outdoor has set targets for female representation in leadership roles, aiming for 40% on the Board of Directors and 49% at the director level and above. They have shown improvement from the previous year, with increases in female representation across various leadership levels. In comparison, Nike has a target of 45% female representation in leadership by FY25 and achieved 44% in FY23, consistent with FY22. While both companies are making progress, Nike is slightly ahead in current representation.
• What targets are set for ethnic minority representation across the whole workforce (NOT leadership positions)? How does it compare to last year?
  • better than On Holding: On Holding does not specify explicit targets for ethnic minority representation across its entire workforce, focusing instead on BIPOC representation in leadership and team members. In 2023, BIPOC representation among team members was 60.8%, up from 53.7% the previous year. In contrast, Nike has set a target of 35% for ethnic minority representation by FY25, achieving 41% in FY23, an increase from 39% in FY22. Nike shows clearer commitment and measurable progress compared to On Holding.
  • better than Anta Sports: Anta Sports does not set specific targets for ethnic minority representation across its entire workforce, only noting the hiring of approximately 2,900 individuals from over 40 ethnic minorities in 2023. In contrast, Nike has established a target of 35% for ethnic minority representation by FY25 and reported 41% in FY23, an increase from 39% in FY22. This indicates that Nike is actively working towards its diversity goals, while Anta Sports lacks measurable targets or comparative data.
  • worse than Deckers Outdoor: Deckers Outdoor has set a target for ethnic minority representation at 59.9% of U.S. employees for FY23, showing an increase from 56.9% in FY22. In comparison, Nike aims for 35% by FY25 and reported 41% representation in FY23, up from 39% in FY22. While both companies are making progress, Deckers has a higher target and current representation, indicating a stronger commitment to diversity across their entire workforce compared to Nike.
• What targets are set for ethnic minority representation in leadership roles ONLY? How does it compare to last year?
  • better than On Holding: On Holding does not set explicit targets for ethnic minority representation in leadership roles, but reports a BIPOC representation of 23% among leaders and 14.8% among senior leaders in 2023, showing a slight increase from 22.5% and 14% in 2022, respectively. In contrast, Nike has a target of 30% for ethnic minority representation at the director level and above, achieving 34% in FY23, up from 33% in FY22, indicating a stronger commitment to diversity in leadership.
  • better than Anta Sports: Anta Sports does not set specific targets for ethnic minority representation in leadership roles, focusing instead on gender diversity with a goal of over 40% female executives by 2030. As of December 31, 2023, female executive representation was 36.6%, a slight increase from 36.1% the previous year. In contrast, Nike has set a target of 30% for ethnic minority representation at the director level and above, achieving 34% in FY23, up from 33% in FY22.
  • better than Deckers Outdoor: Deckers Outdoor has set a target of 25% for ethnic minority representation in leadership roles, achieving over 24% as of March 31, 2023, which is a 3% increase from 21% in FY22. In comparison, Nike has a target of 30% and achieved 34% in FY23, up from 33% in FY22. Nike not only surpasses its target but also shows a smaller year-over-year increase compared to Deckers, indicating a stronger performance in ethnic minority representation in leadership roles.

DEI Initiatives

• What are the notable diversity, equity and inclusion initiatives the company is focusing on?
  • better than On Holding: On Holding is actively establishing long-term partnerships to enhance diversity in hiring, ensuring 50% of final candidates are from underrepresented communities. They support 13 inclusion groups and conduct regular pay equity analyses, achieving 56% BIPOC representation among brand ambassadors. In comparison, Nike has a robust DEI strategy with a 41% representation of U.S. racial and ethnic minorities in its corporate workforce and a strong focus on accessibility, mentorship, and supplier diversity, spending $1.4 billion with diverse-owned suppliers.
  • better than Anta Sports: ANTA Sports is actively pursuing diversity, equity, and inclusion (DEI) initiatives, aiming for over 40% female executives and 30% women on the Board by 2030. They have a Chief Diversity Officer and conduct regular evaluations of their DEI program. In comparison, Nike has a more established DEI strategy with a 41% representation of U.S. racial and ethnic minorities and a successful DEI Mentorship Program. Nike’s commitment to diverse suppliers further highlights its leadership in DEI efforts.
  • better than Deckers Outdoor: Deckers Outdoor is actively pursuing diversity, equity, and inclusion (DEI) through initiatives like Employee Resource Groups and mandatory anti-racism training, achieving 24% BIPOC representation at the director level and 43% among new hires. In comparison, Nike has a more robust DEI strategy, with 41% representation of U.S. racial and ethnic minorities in its corporate workforce and a successful DEI Mentorship Program. Nike’s commitment to diverse suppliers, spending $1.4 billion, further highlights its leadership in DEI initiatives.
• Do they measure employee engagement? How has this progressed over the years?
  • better than On Holding: On Holding measures employee engagement through an Annual Engagement Survey, achieving a global participation rate of 81% in March 2023, with 90% of team members feeling authentic at work. In contrast, Nike’s engagement scores increased slightly from 79% to 80% in FY23, still below industry benchmarks. While both companies show commitment to improving engagement, On Holding demonstrates stronger outcomes and higher employee sentiment, indicating more effective engagement strategies over the years.
  • better than Anta Sports: Anta Sports measures employee engagement through an annual Employee Engagement Survey, achieving a significant increase in employee training from 79.7% in 2021 to 95.1% in 2023. They also introduced DEI questions in 2023 to enhance understanding of employee perspectives. In comparison, Nike’s engagement scores improved slightly from 79% to 80% in FY23, but remain below industry benchmarks. While both companies are committed to measuring engagement, Anta Sports shows more substantial progress in employee training and DEI initiatives.
  • better than Deckers Outdoor: Deckers Outdoor demonstrates strong employee engagement practices, with an 88% participation rate in their latest survey and 87% of respondents expressing pride in their work. They have consistently tracked progress and hold themselves accountable to their values. In comparison, Nike also measures engagement but has lower favorable scores, with 80% for engagement and 78% for inclusion, both below industry benchmarks. While Nike shows improvement over the years, Deckers appears to have a more robust engagement strategy.
• What employee benefits do they provide that help with diversity & inclusion? E.g. parental leave
  • better than On Holding: On Holding demonstrates a strong commitment to diversity and inclusion through the establishment of 13 inclusion groups, pay equity analyses, and a focus on diverse hiring practices. In comparison, Nike excels in providing comprehensive family-building benefits, including unlimited fertility treatments and enhanced transgender healthcare, alongside travel coverage for abortion services. While both companies prioritize diversity and inclusion, Nike’s extensive healthcare benefits cater specifically to diverse family structures, indicating a more robust approach in this area.
  • better than Anta Sports: Anta Sports provides essential employee benefits that promote diversity and inclusion, such as paid maternity and paternity leave, maternal rooms, and support for employees with disabilities. They also focus on gender pay equality and increasing female representation in leadership. In comparison, Nike offers a more comprehensive range of benefits, including unlimited fertility treatment, enhanced transgender healthcare, and travel coverage for abortion services. Nike’s benefits are more extensive, reflecting a stronger commitment to diverse family structures and healthcare needs.
  • better than Deckers Outdoor: Deckers Outdoor offers a range of employee benefits that promote diversity and inclusion, including paid maternity, parental, and family leave, childcare resources, and floating holidays for cultural observances. They also have ten active Employee Resource Groups (ERGs) supporting various communities. In comparison, Nike provides comprehensive family-building benefits, enhanced transgender healthcare, and travel coverage for abortion services, reflecting a strong commitment to diverse family structures and healthcare needs. Both companies demonstrate a commitment to diversity, but Nike’s benefits are more extensive in healthcare support.
• Does the company have employee groups supporting diversity and inclusion?
  • better than On Holding: On Holding has established 13 inclusion groups aimed at empowering diverse voices and plans to integrate these programs into their business processes in 2024. They also aim for 50% of final-stage candidates to come from underrepresented communities, with 56% of team members feeling they can be their authentic selves at work. In comparison, Nike has a robust framework with employee resource groups, achieving 41% representation of U.S. racial and ethnic minorities and high scores in disability and LGBTQ+ inclusion.
  • better than Anta Sports: Anta Sports has established a Chief Diversity Officer to oversee its DEI program, emphasizing diversity in recruitment and promotion, with a target of over 40% female executives by 2030. Additionally, over 4,000 employees participate in trade unions promoting open dialogue on diversity. In comparison, Nike has robust employee resource groups, achieving 41% representation of U.S. racial and ethnic minorities and earning top scores for disability and LGBTQ+ inclusion. Both companies demonstrate strong commitments, but Nike shows slightly higher minority representation.
  • better than Deckers Outdoor: Deckers Outdoor has established ten Employee Resource Groups (ERGs) focused on various communities, fostering belonging and innovation among employees. They also implement mandatory anti-racism training and monthly DEI discussions. In comparison, Nike also has employee resource groups and has achieved 41% representation of U.S. racial and ethnic minorities, along with recognition for disability and LGBTQ+ inclusion. While both companies are committed to diversity and inclusion, Deckers Outdoor’s structured ERG framework and training initiatives appear more comprehensive.
• What is the company doing to invest in diverse talent?
  • better than On Holding: On Holding is actively investing in diverse talent through initiatives like establishing long-term partnerships to ensure 50% of final-stage candidates come from underrepresented communities and launching inclusive leadership assessments. In comparison, Nike has achieved a 41% representation of U.S. racial and ethnic minorities in its workforce and has committed $800K in professional development for diverse groups. Nike’s comprehensive DEI strategy and successful spending with diverse suppliers highlight a more structured and impactful approach to fostering diversity than On Holding’s emerging initiatives.
  • better than Anta Sports: ANTA Sports is making strides in investing in diverse talent, with a current representation of 36.6% female executives and a goal of over 40% by 2030. They emphasize fair recruitment and have recruited 33,500 employees from diverse backgrounds. In comparison, Nike has a more robust DEI strategy, achieving 41% representation of U.S. racial and ethnic minorities and significant investments in professional development, totaling $800K in FY23. Nike’s structured approach and early achievement of diverse supplier spending further enhance its commitment to diversity.
  • better than Deckers Outdoor: Deckers Outdoor is making strides in investing in diverse talent, with 24% of its director-level and above employees from BIPOC communities and 43% of new hires identifying as BIPOC. In contrast, Nike outperforms its peer with 41% representation of U.S. racial and ethnic minorities in its corporate workforce and a significant investment of $800K in professional development for diverse groups. Nike’s comprehensive DEI strategy and early achievement of diverse supplier spending further highlight its commitment to fostering an inclusive workplace.
• Do they sponsor education programs for under-represented groups?
  • better than On Holding: On Holding actively sponsors education programs for under-represented groups, exemplified by their mentorship series with PROWAH and support for women entrepreneurs in Kenya. They also celebrate cultural events like Hispanic Heritage Month, promoting inclusivity. In comparison, Nike demonstrates a more substantial financial commitment, investing $10 million over five years in HBCUs and HSIs, with significant contributions already made. Nike’s comprehensive approach, including on-campus events and partnerships, highlights a broader strategy for fostering diversity in education and career opportunities.
  • better than Anta Sports: ANTA Sports is actively sponsoring education programs for under-represented groups, partnering with UNHCR to support displaced children and adolescents, aiming to help nearly 300,000 youths return to school by 2025. They also established 184 ADream Centers, impacting over 6.62 million teenagers. In comparison, Nike is investing $10 million over five years in HBCUs and HSIs, delivering $2.95 million in FY23, and engaging in on-campus events to support diverse students. Both companies demonstrate strong commitments, but Nike’s focus is more localized.
  • better than Deckers Outdoor: Deckers Outdoor sponsors education programs for under-represented groups through an annual scholarship program with the United Negro College Fund, donating $1.4 million in FY23. They commit to at least $1 million annually for underserved youth education. In comparison, Nike is more aggressive in its investment, committing $10 million over five years, with $2.95 million delivered in FY23. Nike’s broader engagement includes on-campus events and partnerships focused on leadership development, showcasing a more comprehensive approach to fostering diversity.
• What is the company doing to give back to their local communities?
  • better than On Holding: On Holding is actively engaged in community support through its Right To Run program, which promotes safety and inclusion in movement, alongside offering paid volunteer time and hosting global Community Day events. In contrast, Nike demonstrates a more extensive commitment, investing $142.7 million in community support in FY23, with a robust employee giving platform that matches donations. Nike’s initiatives not only provide financial support but also empower employees in grant selection, fostering a deeper culture of community engagement.
  • better than Anta Sports: ANTA Sports is actively engaged in community support, donating RMB 59 million in cash and over RMB 250 million in sportswear in 2023, alongside launching the Hemin Foundation with an initial RMB 10 billion donation. They also responded to emergencies, such as donating winter gear after the Gansu earthquake. In comparison, Nike invested $142.7 million in community support, with a strong employee engagement model, matching donations, and a focus on local needs through the Community Impact Fund.
  • better than Deckers Outdoor: Deckers Outdoor is actively engaged in community support, donating over $4.2 million in FY23 and encouraging employee volunteerism with paid time off and additional donations for extensive volunteering. In comparison, Nike significantly outperforms Deckers, investing $142.7 million in community support and facilitating over $16 million in employee-directed donations. Nike’s initiatives, including the Give Your Best platform and Community Impact Fund, foster a robust culture of giving, demonstrating a deeper commitment to local communities than Deckers.

Supplier monitoring

• Supplier diversity and inclusion – What is the company doing to monitor their suppliers when it comes to diversity and inclusion?
  • better than On Holding: On Holding employs a structured approach to monitor supplier diversity and inclusion, utilizing independent audits and a Workplace Standards Monitoring Program, with 100% of Tier 1 suppliers audited in 2023. In contrast, Nike’s Business Diversity and Inclusion program has achieved $1.4 billion in spending with diverse-owned suppliers, surpassing its goal. Nike’s strategy includes setting representation targets for strategic suppliers and enhancing gender equity training, demonstrating a more proactive and comprehensive commitment to supplier diversity and inclusion.
  • better than Anta Sports: ANTA Sports is actively monitoring its suppliers through a Supplier Sustainability Management Handbook and regular ESG audits, focusing on social responsibility and compliance with human rights. In contrast, NIKE’s approach is more comprehensive, with its Business Diversity and Inclusion program exceeding its spending goal with diverse suppliers and implementing representation targets for strategic suppliers. NIKE also emphasizes training for gender equity, showcasing a stronger commitment to embedding diversity in procurement compared to ANTA’s focus on compliance and social responsibility.
  • better than Deckers Outdoor: Deckers Outdoor is actively monitoring its suppliers for diversity and inclusion through a strategy that includes social compliance assessments and plans to engage 100% of Tier 2 partners by 2025. In contrast, Nike has surpassed its goal of spending $1 billion with diverse-owned suppliers, achieving $1.4 billion in FY23, and has established comprehensive internal structures for diversity in procurement. Nike’s proactive approach, including training programs and representation targets for strategic suppliers, demonstrates a more advanced commitment to supplier diversity and inclusion.
• Supplier human rights -What is the company doing to monitor their suppliers when it comes to human rights and living wage?
  • better than On Holding: On Holding monitors its suppliers through a comprehensive Workplace Standards Monitoring Program, achieving 100% independent audits for Tier 1 suppliers in 2023 and setting a goal for living wage compliance by 2025. In contrast, Nike also ensures 100% compliance in its extended supply chain, with a strong focus on worker engagement and resolution of issues. While both companies are committed to ethical practices, Nike’s proactive worker engagement initiatives and collaboration with organizations like Issara enhance its human rights monitoring efforts.
  • better than Anta Sports: Anta Sports actively monitors its suppliers through regular audits, training programs, and human rights risk assessments, ensuring compliance with their Supplier Sustainability Management Handbook. They conduct over 40 ESG training sessions annually and utilize third-party tools for performance measurement. In comparison, Nike demonstrates a strong commitment to human rights with 100% of its facilities meeting foundational standards, collaboration with organizations for anonymous worker feedback, and the implementation of the Engagement and Wellbeing program to enhance workplace conditions.
  • better than Deckers Outdoor: Deckers Outdoor actively monitors its suppliers through an Ethical Supply Chain Supplier Code of Conduct, conducting annual audits of Tier 1 partners and engaging Tier 2 partners with onsite visits and worker interviews. They enforce a zero-tolerance policy for labor violations and promote fair wage practices. In comparison, Nike also ensures comprehensive supplier monitoring with 100% compliance in its extended supply chain, utilizes anonymous reporting through partnerships, and emphasizes the Employer Pays Principle, showcasing a strong commitment to ethical labor practices.
• Supplier forced labor – What is the company doing to monitor their suppliers when it comes to forced labor and child labor?
  • better than On Holding: On Holding actively monitors its suppliers for forced labor and child labor through a comprehensive Workplace Standards Monitoring Program, achieving 100% independent audits of Tier 1 suppliers by the end of 2023. In contrast, Nike employs enhanced due diligence assessments and specialized tools like the CUMULUS Forced Labor Screen, focusing on high-risk countries and foreign migrant workers. While both companies prioritize monitoring, On Holding’s independent audits and goal for living wages demonstrate a more structured approach compared to Nike’s broader risk assessment strategy.
  • better than Anta Sports: Anta Sports actively monitors its suppliers for forced labor and child labor through rigorous assessments, a zero-tolerance policy, and immediate termination of non-compliant suppliers. They conduct regular ESG audits and provide human rights training to ensure compliance. In comparison, Nike employs enhanced due diligence assessments and specialized tools like the CUMULUS Forced Labor Screen, focusing on high-risk countries and the Employer Pays Principle. While both companies are committed to addressing these issues, Nike’s approach emphasizes proactive screening and collaboration with external organizations.
  • worse than Deckers Outdoor: Deckers Outdoor actively monitors its suppliers for forced labor and child labor through comprehensive audits, achieving zero findings of forced labor and child labor in the past five years. In contrast, Nike employs enhanced due diligence assessments and specialized tools, revealing non-compliances related to worker fees in high-risk countries. While both companies emphasize ethical practices, Deckers demonstrates a stronger track record with its zero-tolerance policies and full transparency in supplier partnerships.

Controversies

• Has the company been involved in human rights controversies?
  • worse than On Holding: On Holding has not been involved in human rights controversies, demonstrating a strong commitment to ethical labor practices through policies like the Responsible Business Policy and achieving 100% independent audits for Tier 1 suppliers. In contrast, Nike has faced human rights issues, particularly related to forced labor, and acknowledges risks within its supply chain. While Nike has implemented measures to address these concerns, the presence of such controversies highlights a significant difference in their overall human rights performance compared to On Holding.
  • worse than Anta Sports: Anta Sports has not been involved in human rights controversies, demonstrating a strong commitment to human rights protection with no reported incidents of illegal employment, child labor, or forced labor. In contrast, Nike has faced human rights controversies, particularly related to forced labor risks within its supply chain. While Nike has established measures to address these issues, such as a Supplier Code of Conduct and collaborations with organizations, the ongoing risks highlight a significant difference in their human rights performance compared to Anta Sports.
  • worse than Deckers Outdoor: Deckers Outdoor has not been explicitly reported as involved in human rights controversies, although it faces compliance challenges within its supply chain. In contrast, Nike has been involved in human rights controversies, particularly regarding forced labor, and has established measures like a Supplier Code of Conduct to address these issues. While both companies recognize the importance of human rights in their operations, Nike’s history of controversies highlights a more significant concern compared to Deckers Outdoor’s proactive compliance efforts.
• What are the biggest challenges with diversity & inclusion?
  • worse than On Holding: On Holding faces significant challenges in diversity and inclusion, with only 14.8% representation of BIPOC individuals among senior leaders and just 56% of team members feeling they can be their authentic selves. In comparison, Nike has achieved 41% representation of U.S. racial and ethnic minorities in its corporate workforce, indicating better overall representation. However, both companies struggle with systemic barriers and the need for continuous engagement and education to foster true inclusivity and equitable opportunities.
  • worse than Anta Sports: Anta Sports faces significant challenges in diversity and inclusion, particularly with discrimination, gender pay equality, and increasing female representation in leadership. They aim for over 40% female executives by 2030 and have established a Chief Diversity Officer to address these issues. In comparison, Nike has achieved 41% representation of U.S. racial and ethnic minorities but still struggles with systemic barriers and the need for ongoing education and accountability. Both companies recognize the importance of sustained efforts in D&I.
  • worse than Deckers Outdoor: Deckers Outdoor faces challenges with diversity and inclusion (D&I) related to systemic biases and the effectiveness of mandatory training, which varies among employees. In contrast, Nike has achieved 41% representation of U.S. racial and ethnic minorities but still has room for improvement. Both companies struggle with ingraining D&I principles into their cultures, but Nike’s focus on diverse supplier initiatives and ongoing accountability highlights its commitment, while Deckers emphasizes the need for continuous evaluation of its strategies.

Company Performance Details

DEI Targets

What targets have they set on female representation across the whole workforce (NOT leadership positions)? How does it compare to last year? The target for female representation across the entire global corporate workforce is set at 50%. In FY23, the representation of women in the global corporate workforce was 51%, which is a slight decrease of 0.3 percentage points from FY22, where it was 51.1%. This performance has allowed the company to surpass its target for the second consecutive year. The report indicates that the representation of women has remained steady, with a baseline comparison showing a 0.5 percentage point increase since FY20. Overall, the company is on track to maintain its commitment to gender representation in the workforce.

What targets have they set on female representation in leadership roles ONLY? How does it compare to last year? The target for female representation in leadership positions at Nike is set at 45% by FY25. In FY23, the company achieved a representation of 44% of women in leadership roles, which is consistent with the 44% reported in FY22, showing no significant change year-over-year. This performance indicates that Nike is on track to meet its 2025 target. Additionally, the overall representation of women in the global corporate workforce remained steady at 51%, surpassing the 50% target for the second consecutive year. These figures reflect Nike’s commitment to increasing female representation in leadership and maintaining accountability towards their goals.

What targets are set for ethnic minority representation across the whole workforce (NOT leadership positions)? How does it compare to last year? The target for ethnic minority representation across the entire U.S. corporate workforce is set at 35% by FY25. In FY23, the representation of U.S. racial and ethnic minorities in the corporate workforce was reported at 41%, which is an increase of 1.7 percentage points from FY22, where it was 39%. This shows a positive movement towards the target, as the representation has risen significantly from the baseline of 32% in FY22. Additionally, the report highlights that the representation of U.S. racial and ethnic minorities at the director level and above is currently at 34%, up from 33% in FY22. Overall, the data indicates a commitment to increasing diversity within the workforce, with notable progress made in the past year.

What targets are set for ethnic minority representation in leadership roles ONLY? How does it compare to last year? The target for ethnic minority representation at the director level and above is set at 30%, with the FY23 performance achieving 34%. This represents a half percentage point increase from FY22, which recorded 33%. Additionally, the overall representation of U.S. racial and ethnic minorities in the U.S. corporate workforce increased from 39% in FY22 to 41% in FY23, surpassing the target of 35%. The report highlights that this increase is part of a broader effort to attract and retain diverse talent, with a specific focus on increasing the pipeline of Black and LatinX talent. Overall, the data indicates a positive trend in ethnic minority representation in leadership roles compared to the previous year.

DEI Initiatives

What are the notable diversity, equity and inclusion initiatives the company is focusing on? The company is focusing on several notable diversity, equity, and inclusion (DEI) initiatives. Their DEI strategy is built on four pillars: Diversity, Equity, Inclusion, and Accessibility, aimed at hiring and promoting diverse talent, embedding DEI principles, fostering a culture of belonging, and creating accessible experiences for all. They have achieved a 41% representation of U.S. racial and ethnic minorities in their corporate workforce, up from a 35% baseline, and have earned a maximum score of 100 on the Disability:IN Equality Index for two consecutive years. Additionally, their DEI Mentorship Program has seen over 1,830 employees complete it, with plans to expand globally in FY24. The company has also surpassed its 2025 goal by spending $1.4 billion with diverse-owned suppliers, demonstrating their commitment to business diversity and inclusion.

Do they measure employee engagement? How has this progressed over the years? Yes, they measure employee engagement through various survey tools, including an annual all-employee survey, corporate pulse surveys, and listening sessions. In FY23, the average favorable scores for engagement questions increased from 79% to 80%, which is still four percentage points below the top quartile industry benchmark of 84%. Additionally, the average favorable scores for inclusion questions rose from 77% to 78%, remaining six percentage points below the same benchmark. Over the years, there has been a consistent effort to improve engagement, as evidenced by the increase in strategic suppliers measuring and improving worker engagement, which grew significantly in FY23 compared to FY22. The implementation of the Engagement and Wellbeing (EWB) Survey since 2017 has allowed for a broader reach, with 100% of strategic suppliers now measuring engagement, indicating a strong commitment to enhancing employee experience.

What employee benefits do they provide that help with diversity & inclusion? E.g. parental leave Nike provides a range of employee benefits that support diversity and inclusion, particularly in family planning and healthcare. They offer comprehensive family-building benefits, including unlimited fertility treatment cycles, adoption, and surrogacy coverage, which cater to diverse family structures. Additionally, their transgender healthcare benefits have been enhanced to include travel for necessary services, ensuring equitable access to care. In FY23, they also introduced travel coverage for abortion services, reflecting their commitment to supporting employees’ healthcare needs regardless of location. Furthermore, 95% of Nike employees value the benefits available to them, indicating a strong alignment with their diverse needs and family situations.

Does the company have employee groups supporting diversity and inclusion? Yes, the company has employee groups supporting diversity and inclusion. These groups, known as employee resource groups, are led by passionate teammates and aim to unify members across various levels, geographies, and functions to promote cultural awareness and advance diversity and inclusion within the organization. The company has made significant progress in representation, achieving 41% representation of U.S. racial and ethnic minorities in its corporate workforce, which is an increase of nine percentage points from the 2020 baseline. Additionally, the company has been recognized as a Best Place to Work for Disability Inclusion and LGBTQ+ Equality, earning a maximum score of 100 on relevant indices for multiple consecutive years. The DEI Mentorship Program further supports these efforts by empowering employees on topics like inclusive leadership and psychological safety, with over 1,830 participants across various cohorts.

What is the company doing to invest in diverse talent? Nike is actively investing in diverse talent through its comprehensive Diversity, Equity, and Inclusion (DEI) strategy, which focuses on hiring, retaining, and promoting individuals from diverse backgrounds. The company has achieved a 41% representation of U.S. racial and ethnic minorities in its corporate workforce, an increase of nine percentage points from its 2020 baseline. Additionally, Nike has made significant investments in professional development, with a target of 2x investments focused on racial and ethnic minorities in the U.S. and women globally, amounting to $800K in FY23. The Business Diversity and Inclusion (BDI) program further supports this initiative by exceeding its goal of spending $1 billion with diverse-owned suppliers two years ahead of schedule, reaching $1.4 billion in FY23. Overall, Nike’s commitment to diversity is reflected in its structured approach to fostering an inclusive workplace and engaging diverse suppliers, which enhances innovation and creativity within the company.

Do they sponsor education programs for under-represented groups? Yes, they do sponsor education programs for under-represented groups. Nike is committed to investing $10 million over five years in Historically Black Colleges and Universities (HBCUs) and Hispanic-Serving Institutions (HSIs) to promote pathways to college degrees and economic opportunities. In FY23, they delivered a total of $2.95 million, which included $1 million to HBCUs via the Thurgood Marshall College Fund, $1.75 million to HSIs through the Hispanic Scholarship Fund, and $200,000 to the Florida A&M University Foundation. Additionally, Nike engages with these institutions through on-campus events such as resume writing workshops and interview preparation sessions, aimed at supporting students from diverse backgrounds. Their strategy also includes partnerships with organizations that focus on leadership development for minorities, further enhancing their commitment to fostering diversity in education and career opportunities.

What is the company doing to give back to their local communities? Nike is actively giving back to local communities through various initiatives that engage their employees in volunteerism and charitable contributions. Their employee giving platform, Give Your Best (GYB), allows employees to donate to schools, nonprofits, and other causes, with the Nike Foundation matching those donations dollar-for-dollar, and providing a 2x match for sport-related organizations up to $25,000 per year per employee. In FY23, Nike invested $142.7 million in community support, which was 2.1% of the prior year’s pre-tax income, and nearly 7,000 employees directed over $16 million to more than 4,200 community organizations globally. Additionally, Nike’s Community Impact Fund (NCIF) empowers employees to participate in the grant selection process for local organizations, ensuring that funding aligns with community needs. Through these efforts, Nike not only supports immediate community needs but also fosters a culture of giving and social responsibility among its workforce.

Supplier monitoring

Supplier diversity and inclusion – What is the company doing to monitor their suppliers when it comes to diversity and inclusion? NIKE actively monitors its suppliers for diversity and inclusion through its Business Diversity and Inclusion (BDI) program, which aims to align its procurement base with its consumer base. The company has surpassed its goal of spending $1 billion with diverse-owned suppliers two years ahead of schedule, achieving $1.4 billion in FY23. NIKE’s strategy includes expanding visibility to diverse suppliers, engaging leaders to support BDI efforts, and establishing internal structures with processes and metrics to embed diversity in procurement decisions. Additionally, 100% of strategic suppliers have set NIKE-approved representation targets, and the company has launched training programs to enhance gender equity capabilities among suppliers. This comprehensive approach not only fosters supplier diversity but also contributes to broader community impacts and innovation within NIKE.

Supplier human rights -What is the company doing to monitor their suppliers when it comes to human rights and living wage? The company, NIKE, actively monitors its suppliers regarding human rights and living wage through a comprehensive approach that includes regular audits and direct engagement with workers. In FY23, 100% of facilities in NIKE’s extended supply chain met foundational labor, health, safety, and environmental standards, demonstrating a commitment to respecting workers’ rights. NIKE collaborates with organizations like Issara to address worker concerns anonymously, with 19 out of 20 issues raised being resolved, and ongoing support for the remaining issue related to sick leave payment. Additionally, NIKE has implemented the Engagement and Wellbeing (EWB) program, which helps suppliers measure and improve worker engagement, leading to better workplace conditions and productivity. The company also emphasizes the Employer Pays Principle, which prohibits workers from paying fees for their employment, further ensuring ethical treatment of foreign migrant workers.

Supplier forced labor – What is the company doing to monitor their suppliers when it comes to forced labor and child labor? The company is actively monitoring its suppliers for forced labor and child labor through a comprehensive approach that includes enhanced due diligence assessments and specialized assessment tools. They have collaborated with the Responsible Business Alliance and Verit, Inc. to implement the Specialty Validated Assessment Program, which focuses on identifying risks of forced labor at specific supplier facilities. By the end of FY23, these assessments were conducted in high-risk countries such as Malaysia, Jordan, and Taiwan, revealing non-compliances related to fees paid by workers. Additionally, the company employs the CUMULUS Forced Labor Screen, which has been expanded to all Tier 1 finished goods and strategic Tier 2 materials suppliers hiring foreign migrant workers, allowing for proactive screening of forced labor indicators. The company also emphasizes the Employer Pays Principle, ensuring that workers do not pay fees for their employment, which is crucial in mitigating forced labor risks.

Controversies

Has the company been involved in human rights controversies? The information provided does indicate that the company has been involved in human rights controversies, particularly concerning forced labor. The data mentions that there are operations and suppliers identified as having significant risk for incidents of forced or compulsory labor, as highlighted in the GRI 409: Forced or Compulsory Labor section. Additionally, the company has established a Supplier Code of Conduct and Human Rights and Labor Compliance Standards to address these issues, suggesting a recognition of the potential for human rights violations within its supply chain. Furthermore, the company collaborates with organizations like the Fair Labor Association and the ILO/IFC Better Work program to mitigate labor risks, indicating ongoing efforts to address past controversies. However, the presence of these risks and the need for such measures imply that human rights issues have been a concern for the company.

What are the biggest challenges with diversity & inclusion? The biggest challenges with diversity and inclusion (D&I) often stem from systemic barriers that hinder equitable opportunities and representation. For instance, while NIKE has made significant strides, achieving 41% representation of U.S. racial and ethnic minorities in its corporate workforce, this still indicates that there is room for improvement in achieving full representation. Additionally, the need for continuous engagement and education of leaders to support diverse supplier initiatives highlights the challenge of ingraining D&I principles into everyday business practices. The report also notes that diverse suppliers often face barriers to awareness, which can limit their opportunities for growth and partnership. Overall, while progress is being made, the ongoing need for accountability, education, and breaking down systemic barriers remains a significant challenge in the D&I landscape.