CEO’S MESSAGE OUR ESG STRATEGY DASHBOARD PEOPLE SUPPLY CHAIN ENVIRONMENT TRANSPARENCY REFERENCE TABLES Sustainable Materials Nike Terrascape Understanding and improving the ESG impacts associated with raw materials To help protect the future of sports, Nike reconstructed a bold sourced through our suppliers are priorities. We are evaluating numerous icon to introduce the new Air Max Plus™N Terrascape. In addition initiatives to prioritize the procurement of less impactful material options and to delivering premium stability and cushioning, the Terrascape educating our consumers on product options with ESG-preferred attributes. is crafted with at least 20% recycled content by weight. This sneaker defies the status quo with an eye to a better future for We are continuing to expand our network of sustainable suppliers. For example, our planet. By turning what was once considered waste into new we continue to explore the use of more sustainable cotton for our proprietary opportunities to create, Nike is changing the game from the ground brand apparel, such as organic, recycled, and certified producers. We are also up. The speckles in the rubber outsole are made from Nike Grind. establishing a process to consider the use of sustainable fabric and trims in the Manufacturing scrap, unused manufacturing materials, and end-of- development of our proprietary brand products. We are currently working with a of Less Impactful life footwear—including rubber, foam, fiber, leather, and textiles that zipper supplier that is a Bluesign-certified company. Material Options are collected, separated, and reused—are processed into new Nike To better understand the sustainability performance of our value chain suppliers, Grind materials that provide a premium foundation to build great in FY21, we introduced a new questionnaire to our European procurement sneakers (and more) while driving toward a more circular future. process. For larger store procurements (which could include fixtures, mannequins, or other items) we require vendors to respond to around 30 questions covering various ESG topics, which may include for example: • Do you use any sustainable or eco-friendly materials? • Do you measure Scope 1 and 2 emissions? How much are they? • Are raw materials used in the product or production sourced from legal and sustainably-managed sources? • How does your company ensure it complies with ethical workplace, labor, and human rights standards? Do you have a policy? A condensed version of these questions is also required for service providers such as architects, project managers, and general contractors. Our Conflict Minerals Policy reaffirms our commitment to sourcing components and materials free of conflict minerals (defined as tin, tantalum, tungsten, and gold). Celebrating Brands’ Our branded partners are also increasing the number of sustainable footwear and apparel products they offer, including vegan products, recycled content (e.g., rubber, polyester, and ocean plastics), organic and sustainably-sourced cotton and yarns, and products certified through sustainable supply chains (e.g., the Better Cotton Initiative). 4141