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NIKE SUSTAINABILITY NIKE CHEMISTRY CENTER OF EXCELLENCE 1 TOPICS 1. A BRIEF HISTORY 2. CORE PRINCIPLES 3. TRANSITION STRATEGY 4. LESSONS LEARNED NIKE SUSTAINABILITY 2 NIKE SUSTAINABILITY 2013: NIKE commits to phasing out of long-chain PFCs (C8) used in DWRs, completing this work in 2015. 2017: NIKE commits to phasing out of all PFC-based DWRs by the end of the 2021 calendar year. These commitments drove our project and stopped us from kicking the can down the road. 3 NIKE SUSTAINABILITY Nike will not sacrifice product performance when switching to PFC-free DWRs. Nike will avoid regrettable substitutions when transitioning out of PFCs. 4 Our team conducted toxicology assessments for all proposed PFC-free DWRs. All DWRs that passed this assessment were added to a central list, accessible to all Nike teams and external partners. We've shared this list with others in our industry to help promote PFC-free DWR adoption. NIKE SUSTAINABILITY 5 TRANSITION STRATEGY NIKE SUSTAINABILITY 6 A significant portion of our DWR volume was consolidated to a small number of individual materials. Our team worked with material developers to swap C6/C4 DWRs for PFC-free DWRs on highest-volume materials. Product teams could easily do the right thing - select the PFC-free version instead of the C6 version! NIKE SUSTAINABILITY 7 Footwear was our most challenging product type, in large part due to the complexity of assembling a shoe. PFC-free DWRs have less room for error. Optimal application took experience and troubleshooting. We observed a tendency for PFC-free DWRs to interfere with adhesives used in footwear bonding. NIKE SUSTAINABILITY 8 Material conversions weren't an option for footwear due to the variety and type of materials. Our team provided support to product teams through education, troubleshooting assistance, and making connections. Support was available, but we had to"build bridges"to ensure all teams were making use of available resources. NIKE SUSTAINABILITY 9 Leadership buy-in is a critical success factor. Start with"the why". Create alignment between product, sustainability, and regulatory teams. NIKE SUSTAINABILITY 10 THANK YOU! NIKE SUSTAINABILITY 11