CEO’S MESSAGE OUR ESG STRATEGY DASHBOARD PEOPLE SUPPLY CHAIN ENVIRONMENT TRANSPARENCY REFERENCE TABLES Chemicals Management Water Stewardship In FY21, Team Edition self-completed the Higg Facility Environmental Module (FEM) assessment, which verified zero instances of the facility being Chemicals management is a complex and important part of our processes to protect In FY21, we published our Global Water Stewardship Statement, which states out of compliance with legal requirements, which resulted in an overall score the environment, as well as team member and customer health. For every chemical our commitment to a long-term sustainable approach for safeguarding the improvement of 14% over verified FY20 FEM results. Actionable improvements product that is present in our own facilities or proprietary brand vendor factories, human right to water and sanitation. from FY20 to FY21 included eliminating the facility’s small quantity generator as part of the Globally Harmonized System, we require a Safety Data Sheet, which hazardous waste status and improving the chemical management process. provides information about potential hazards and necessary safety precautions. In our direct operations, we seek to operate our business in a manner that does not encroach on the human right to water and sanitation in the communities we As part of our management processes, we: serve. This includes providing a safe and healthy work environment, including safe water for drinking and hygiene in our stores, distribution centers, and • Manage site health and safety policies and strategic plans; offices, as well as appropriately managing wastewater discharge in compliance • Coordinate safety training for all team members who handle chemicals; with applicable environmental laws and regulations. • Maintain a chemical inventory in printed and electronic copy; For U.S. sites undergoing a remodel or relocation, we require that bathroom • Conduct regular site audits to test storage, labelling, and usage conditions of fixtures adhere to the voluntary guidelines of the U.S. EPA WaterSense program, hazardous chemicals; including 1.5 gallons per minute for faucets, and 1.1 gallons per flush for toilets. • Provide recommendations to factory owners at Tier 1 vendor sites to ensure High efficiency water heaters are also installed where possible. proper training is provided to their team members; • Ensure appropriate personal protective equipment is available at our facilities From FY21 through the start of FY22, 148 stores in our fleet have been fitted with and is provided by factory owners at Tier 1 vendor sites; and water efficient toilets and faucet fixtures. This brings the total to 313 stores from • Confirm proper storage and disposal methods are followed at our facilities and FY19-21. at Tier 1 vendor sites. For some products (from both our private-label and branded partners), we In addition, in compliance with the air permit requirements of certain U.S. facilities, perform screen-printing of graphics onto apparel (e.g., t-shirts). This process we conduct air quality testing annually based on OSHA permissible exposure limits. can use large amounts of water and result in wastewater discharge as inks are To date, the results of air quality tests have been significantly below the permitted cleaned from screens and are prepared for reuse. We have a Health and Safety thresholds in our permits. Policy and Strategic Plan and Waste Disposal Program in place to cover our screen-printing practices. In FY21, we altered the cleaning tanks at our Team Edition facility to enable us to recycle and reuse mineral spirits, which enabled the site to no longer be considered a hazardous waste generator according to the EPA. For Eastbay, we reconfigured our daily operating structure to have only two shifts instead of three, which enabled us to reduce our water use by over 2% and to reduce our natural CPSIA Compliance gas usage by nearly 9% as dryers were run for shorter periods each day. We test our embellishment processes annually for compliance with CPSIA regulations and Nike’s restricted substance list. Testing is conducted by Intertek CPSIA Compliance Testing Services and includes an evaluation of our ink systems and heat seal Because we value our vendors’, team members’, and customers’ safety, embellishments for safety, sustainability, and performance standards. we conduct regular chemicals testing on embellished products in our As part of our continuous improvement efforts to minimize our environmental facilities and in our vendor factories. Our FY21 testing results–completed impacts, we continue to actively evaluate best practices and digital printing by Intertek–indicate 100% compliance with lead and phthalates levels technologies for dyeing and screen-printing to identify opportunities to reduce on Product Options with established in the CPSIA. energy, water, and chemical usage, while simultaneously reducing costs. In FY21, we purchased a direct-to-garment printer for a small volume of private label Socially and Environmentally apparel products that reduces labor and screen cleaning, thus reducing energy usage, ink usage, and wastewater. Preferred Attributes 4242