Brand CasesInnovation and Leading the Change Nike continues to practice "zero carbon" logistics

Publication Date:2022-09-15

Nike has always been committed to "protecting the future of sport" by effectively addressing climate change. Through its advantages of scale, Nike fully integrates sustainability into all aspects of design, manufacturing, logistics, and retails, with ambitious goals in mind, including 100% renewable electricity use in owned and operated facilities by 2025 and 30% carbon reduction across the extended supply chain by 2030, as we continue our journey towards "zero carbon and zero waste". Solving the problems of massive power consumption and carbon emissions in corporate logistics centers and transportation links is one of the keys to Nike's efforts to achieve "zero carbon" in the field of logistics. As an iconic enterprise that actively fulfills its social responsibilities, Nike is constantly innovating. By actively creating solutions and breaking through technological innovations, Nike gradually builds a "zero-carbon logistics center" and expands its green transportation systems. 

Nike China Logistics Center in Taicang, Jiangsu Province is Nike's largest logistics center in Asia. It adopted industry-leading green technology and solutions, which lead to Phase I and II achieving LEED platinum certified and Phase III LEED gold certified. The LEED platinum certification for the Phase I of the project in 2011 is the first time that China's warehousing and logistics industry has won the highest award of this certification. Up to date, 45% of the energy powering the Logistics Center comes from three types of renewable energy sources, solar energy, geothermal energy, and biomass energy. The 4 MW photovoltaic on the rooftop and the ground source heat pump with a depth of 90 meters provide energy for the air conditioners in the office area. In response to the "14th Five-Year" renewable energy development plan, Nike China Logistics Center officially launched the construction of distributed wind power projects in September 2022 to promote low wind speed wind power technology. The project will be officially connected to the grid and put into production in early 2023. By that time, Nike China Logistics Center will use 100% renewable energy and become the first “wind and solar integration” zero-carbon smart logistics center in China.

At present, the carbon emissions of Nike China Logistics Center account for 43% of all Nike’s emissions in owned and operated facilities in China. In the future, 70% of the energy in the logistics center will come directly from distributed wind power, distributed photovoltaics, and energy storage onsite. Based on the optimization of the intelligent IoT operating system, the Logistic Center will also sell excessive renewable electricity produced to the grid and retrieve when necessary to cover the other 30% of the energy consumption. 100% zero-carbon energy supply will be achieved in the Logistic Center. 

Nike China Logistics Center provides 20% of renewable electricity to Nike China, with the wind power project officially operating in early 2023, 43% of Nike China's green electricity will come from the Logistics Center. The production and consumption of renewable energy are combined through advanced technologies such as intelligent IoT and integration of source, grid, load, and storage, and this has become an industry-leading practice.

While expanding the coverage of renewable energy in the logistics center, expanding "green transportation" is another key area for Nike to achieve the goal of "zero carbon" in logistics. Taking advantage of new railways systems, implementing alternative fuels, and utilizing electric vehicles have reduced carbon emissions in outbound freight by 572.4 metric tons in fiscal year 2021 alone. Looking forward to the future trend of "green transportation", how to break through the energy saving of heavy truck transportation provides a new direction. In 2022, Nike and Shanghai International Port (Group) Co., Ltd. (SIPG) cooperated to launch the first 350KWh battery-rechargeable version of SAIC Hongyan 2022, and it has become the first 350KWh electric heavy-duty truck approved for legal compliance in Shanghai. Compared with conventional fuel heavy trucks, the carbon emissions of this electric heavy truck can be reduced by more than 45%. Restricted by battery life and implementation costs, currently, electric heavy trucks are mainly used for short-distance transportation. This electric heavy truck travels between Waigaoqiao in Shanghai and the Nike China Logistics Center in Taicang every day, which is another innovative practice for Nike to promote the decarbonization of heavy truck transportation. When the wind energy project of the Nike China Logistics Center is connected to the grid for power generation in early 2023, electric heavy trucks will also be powered by renewable energy, further breaking through the decarbonization barriers of heavy truck transportation. In July 2022, by expanding cooperation with Maersk, Nike also introduced hydrogen fuel cell heavy trucks for the first time, which will be applied to the route from the Port of Shanghai to the Logistic Center in Taicang. In the long run, clean energy heavy-duty trucks, including electric heavy-duty trucks and hydrogen-powered heavy-duty trucks with different application scopes and advantages, will provide more possibilities for emission reduction and decarbonization in logistics. In the future, Nike will explore more application scenarios of clean energy heavy trucks and continue its innovation efforts towards the goal of "zero carbon" logistics.

(The above content is provided by the brand, and the authenticity of the data is the responsibility of the brand. This article has both Chinese and English versions. If there is any inconsistency, the Chinese version shall prevail.