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NIKE RETAIL STORE DEVELOPMENT




                Green Building Practices
February 09
“A Convenient Truth”…
As a global citizen, Nike is acutely aware of the need to drive sustainability in everything we do. It begins with
concept and design and continues through the entire product lifecycle. The reach of sustainability extends into
nearly every corner of Nike Operations.


                        Flawless & Profitable Execution = Premium* Experience
                                                                                                               US Retail Store Development has turned our
                                                                                                               awareness into action:
             Win at the Moment of Truth: when and where the consumer shops

                                                                                                                  Our long-term goal is for sustainability to
Strategic Priorities
                                                                                                               become a part of our daily business decisions to
                        2. Disciplined         3. Integrate           4. Retail-centric   5. Reinforce
 1. Defined
                        Store/Digital          planning and           supply chain        consumer-centric
                                                                                                               help ensure the health of the natural environment
 “global”
                        Site                   execution              flows right         service, language,
 standards,
                                                                                                               within our stores for generations to come.
 regionally             Development            processes end-         product at the      and capabilities
 relevant and           and                    to-end as a            right time;         to serve the
 locally executed.
                        Operations             “vertical”             place; cost; and    athlete
 XS, S, M, L, XL
                                               retailer               inventory levels
                                                                                                                  Nike strives to not only bring value to our
 Store, NFS,
 Partner and
                                                                                                               business, but to help secure the vitality of the
 digital formats.
   Foundation
                                                                                                               planet. We are accountable for our financial
                                                                                                               profits and are committed to addressing the
 Process Excellence           People
                                                                Sustainability
 Global process and
                                                                                                               environmental impact of our actions.
                              Create retail excellence
                                                                Do the right thing
 technology standards         competencies through
 leveraged to extend          diverse, experienced
                                                                Assure earth-friendly practices,
 Nike Retail’s reach          teams, inspired by
                              Nike’s innovation and             reduce carbon footprint
                              leadership




                                                                …Green on Both Sides – Environmental & Financial
Why Build “Green”?
3


    According to the DOE, there are 76 million residential & 5 million commercial
             buildings in the U.S. that collectively consume & generate:

                                                  Total Energy Use

                                                  Electricity Consumption
                      6%
                             17%
              14%

                                                  Greenhouse Gas Emissions
        19%
                                     30%
                                                  Raw Materials Use
                    14%
                                                  Waste Output (136 million tons
                                                  annually)
                                                  Potable Water Consumption
What is USGBC and LEED® ?
4




                     The U.S. Green Building Council (USGBC)
            is a nonprofit organization with a community of more than
            9,000 members from every sector of the building industry
                           united by a common purpose:
               to transform the building marketplace to sustainability




            LEED® - Leadership in Energy & Environmental Design
            is the nationally accepted Green Building Rating System
                             developed by the USGBC.
              LEED® certification provides independent, third-party
               verification that a building project meets the highest
                               performance standards
How it Works…
5


                             To achieve LEED-CI certification,
                                   buildings must meet
                                                                               •    Certified:   21-26
                                  all prerequisites in the
                                                                               •    Silver:      27-31
    LEED®-CI Rating System


                                       Rating System
                                                                               •    Gold:        32-41
                                     and a minimum of                          •    Platinum:    42-57
                                         21 points.




                                          SS         • Sustainable Sites = 7

                                          WE         • Water Efficiency = 2

                                          EA         • Energy & Atmosphere = 12

                                          MR         • Materials & Resources = 14

                                          EQ         • Indoor Environmental Quality = 17

                                           ID        • Innovation in Design = 5
6




    What
       is NIKE
     doing?
7




    Architectural busSTRUT
    New “Structure & Design” for Lighting
    ▪   Simplicity - eliminates conduit – wiring and track.
    ▪   Flexibility - lights & busway system are interchangeable, reusable, & fully portable.
    ▪   Effectiveness - lights are used only where needed, no waste.
    ▪   Efficiency - optimizes construction sequencing – reduces construction schedule, eliminates field painting and
         speeds installation.
Energy Efficient Lighting
8




             Philips Alto          Lower mercury           T5 Lamp rated
       Fluorescent Lamps are   content combined with     average life over
          the most energy        fewer lamps used           25,000 hours
            efficient and      reduces the impact on   w/lumen depreciation
         designed to use as       the environment.     at only 5%. Lifecycle
            few precious                                 exceeds Halogen
             resources in                                lamps by 90% &
           manufacture as                               Metal Halide lamps
               possible.                                      by 50%.
Lighting Control Panel
9




          GR 2400
                                       Turns lights on & off
                                      using a relay timer for
                                         energy efficiency.




                                        50% reduction in
                                        cost compared to
                                                                Fully digital.
                        Free remote        mechanical
                        programming
                                        switching devices




                                            Complies with
                                          energy code laws.
Lighting Control Panel
10



                        Lighting Control Panel - ROI Calculations
                                                                               Cost   Savings
                     Annual Energy Savings w/LC & D - Lighting control only           $4,067
                                  LC & D System Cost - Lighting control only $4,200
                            Construction Materials not Required-Year 1 only           $3,250
                                Reduce Lamp Maintenance (Annual Savings)               $750
         Reduction in HVAC due to less heat to be extracted (Annual Savings)           $407
                                   Total Annual Savings w/LC & D - Year 1             $4,274
                                 Total Annual Savings w/LC & D - Year 2+              $5,224


                                                                1 yr savings          $4,274
                                                             5 year savings           $25,168
                                                            10 year savings           $51,285
                                                           Payback-Months              5.95
DuctSox Air Distribution Systems
11
DuctSox Air Distribution Systems
12




                         Less materials     No toxic paint
                        used resulting in   emissions from
      GREEN BUILDING



                        reduced cost to
                                            VOC’s (volatile
       ADVANTAGES


                            produce,
                                               organic
                         package, ship,
                                             compounds)
                       install & maintain



                            Eliminates
                         environmental       Improves air
                       impact at end of     distribution and
                         life cycle – no         quality
                        sheet metal to
                            dispose of
13




     Polished Concrete Floors
Polished Concrete Floors
14


                                          Reduces
                        21% less        impact from
                       costly than     construction or
                      epoxy floors
      WHAT MAKES IT


                                         demolition
        GREEN?



                      Alternative to      Reduces
                        hazardous       heating and
                       components      cooling loads



                                       Exceptional
                        Releases        durability
                         minimal          & low
                        pollutants     maintenance
Signage & LED Lighting
15




                      Switched to 100,000 hr LED’s
                      ANNUAL ENERGY SAVINGS
                          Per Store = $ 2,223*


                        Total Energy Cost
                                                  $2,853
                               $630


                            LED               NEON




                                  *Energy modeling study conducted at NFS-Woodburn, OR
Nike Grind Floors…
16



           From this…     To this…
17




                   To this…
     Nike’s Reuse-A-Shoe Program is a key component of Nike’s long-term commitment to
     waste elimination. Nike Grind is the innovative solution in keeping millions of old & tired
       footwear out of landfills. Since 1993, 19 million pairs of shoes have been recycled.
Fitting Rooms
18

     Factory fabrication decreases project schedule by 1 week while reducing
                         construction waste & VOC impact.
19




     What
        are the
       results
          of our
     efforts?
20
Donating old fixtures
 to a local charity
                             NFS – Petaluma, CA
NFS – Rio Grande, TX Achieves SILVER LEED Status*
21


                                          44% water savings vs. current NFS
                                                     average

                                         40% energy savings vs. current NFS
                                                     average

          Environmental
                                        120 tons of carbon dioxide emissions
         Savings Metrics                             reductions
                &
          Performance
                                            29% recycled content materials
            Measures

                                                100% renewable energy


                                          100% low-VOC materials, coating,
                                                    adhesives

                           *expected. Info provided by Lonny Knabe, Nike Sustainable Projects Coordinator
NFS – Rio Grande, TX Achieves SILVER LEED Status*
22



                                                Operational
                                             Efficiency Savings
                                                  $36,663
                                               (over 5 year lease - 3%
                                                energy inflation rate)




               Certification
                  Costs
                $31,710


                               *expected. Info provided by Lonny Knabe, Nike Sustainable Projects Coordinator
23




     What
      MORE
     can we
       do?
INDOOR
SUSTAINABLE                WATER               ENERGY &              MATERIALS &
                                                                                            ENVIRONMENTAL
    SITES                EFFICIENCY           ATMOSPHERE             RESOURCES                 QUALITY




    Select LEED                                                                                Use low VOC
                        Reduce quantity of         Use energy         Use GC’s familiar
                                                                                             emitting materials
   certified sites        water needed        efficient HVAC units    w/Green Building
                           20-30% by             (where viable)                                 Green clean
                                                                     Recycle all feasible
                           changing to:                                                      janitorial program
                                                                           materials
     Alternative                               Zero use of CFC                              Develop & implement
   Transportation                                                       Metal studs to
                                              based refrigerants                             a Construction IAQ
   which includes:       Low Flow toilets                                contain 65%
                                               in HVAC systems                               Management Plan
                                                                       recycled content
a.Rail/Subway/Bus                                                                           during construction &
                                               BOH lighting to
  access by tenant                                                                           before occupancy
                                                                        Building reuse-
                        Faucets – use high    spec out same as
      occupants                                                       maintain 40-60%
                            efficiency                                                           ETS control
                                                    FOH
b.Bicycle Storage &                                                                            (Environmental
                        sensors/restrictors                               Encourage
                                                                                              Tobacco Smoke)
  Changing Rooms                               Develop energy          environmentally
                                              models for climate      responsible forest
      c.Parking                                                                               Thermal Comfort
                            HOT WATER              regions               management            Environment &
Availability-priority      HEATER to be                                                      Monitoring before
     parking for                                                         10-yr lease
                         instant hot. Must      At least 50%                                   occupancy that
    van/carpools           use 10% less                                                         complies with
                                              Green Power usage
                            energy than                                                      ASHRAE standards
                                               w/2 yr contract
                              allowed.                                                         Low “E” Glass
Green Building

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Green Building

  • 1. NIKE RETAIL STORE DEVELOPMENT Green Building Practices February 09
  • 2. “A Convenient Truth”… As a global citizen, Nike is acutely aware of the need to drive sustainability in everything we do. It begins with concept and design and continues through the entire product lifecycle. The reach of sustainability extends into nearly every corner of Nike Operations. Flawless & Profitable Execution = Premium* Experience US Retail Store Development has turned our awareness into action: Win at the Moment of Truth: when and where the consumer shops Our long-term goal is for sustainability to Strategic Priorities become a part of our daily business decisions to 2. Disciplined 3. Integrate 4. Retail-centric 5. Reinforce 1. Defined Store/Digital planning and supply chain consumer-centric help ensure the health of the natural environment “global” Site execution flows right service, language, standards, within our stores for generations to come. regionally Development processes end- product at the and capabilities relevant and and to-end as a right time; to serve the locally executed. Operations “vertical” place; cost; and athlete XS, S, M, L, XL retailer inventory levels Nike strives to not only bring value to our Store, NFS, Partner and business, but to help secure the vitality of the digital formats. Foundation planet. We are accountable for our financial profits and are committed to addressing the Process Excellence People Sustainability Global process and environmental impact of our actions. Create retail excellence Do the right thing technology standards competencies through leveraged to extend diverse, experienced Assure earth-friendly practices, Nike Retail’s reach teams, inspired by Nike’s innovation and reduce carbon footprint leadership …Green on Both Sides – Environmental & Financial
  • 3. Why Build “Green”? 3 According to the DOE, there are 76 million residential & 5 million commercial buildings in the U.S. that collectively consume & generate: Total Energy Use Electricity Consumption 6% 17% 14% Greenhouse Gas Emissions 19% 30% Raw Materials Use 14% Waste Output (136 million tons annually) Potable Water Consumption
  • 4. What is USGBC and LEED® ? 4 The U.S. Green Building Council (USGBC) is a nonprofit organization with a community of more than 9,000 members from every sector of the building industry united by a common purpose: to transform the building marketplace to sustainability LEED® - Leadership in Energy & Environmental Design is the nationally accepted Green Building Rating System developed by the USGBC. LEED® certification provides independent, third-party verification that a building project meets the highest performance standards
  • 5. How it Works… 5 To achieve LEED-CI certification, buildings must meet • Certified: 21-26 all prerequisites in the • Silver: 27-31 LEED®-CI Rating System Rating System • Gold: 32-41 and a minimum of • Platinum: 42-57 21 points. SS • Sustainable Sites = 7 WE • Water Efficiency = 2 EA • Energy & Atmosphere = 12 MR • Materials & Resources = 14 EQ • Indoor Environmental Quality = 17 ID • Innovation in Design = 5
  • 6. 6 What is NIKE doing?
  • 7. 7 Architectural busSTRUT New “Structure & Design” for Lighting ▪ Simplicity - eliminates conduit – wiring and track. ▪ Flexibility - lights & busway system are interchangeable, reusable, & fully portable. ▪ Effectiveness - lights are used only where needed, no waste. ▪ Efficiency - optimizes construction sequencing – reduces construction schedule, eliminates field painting and speeds installation.
  • 8. Energy Efficient Lighting 8 Philips Alto Lower mercury T5 Lamp rated Fluorescent Lamps are content combined with average life over the most energy fewer lamps used 25,000 hours efficient and reduces the impact on w/lumen depreciation designed to use as the environment. at only 5%. Lifecycle few precious exceeds Halogen resources in lamps by 90% & manufacture as Metal Halide lamps possible. by 50%.
  • 9. Lighting Control Panel 9 GR 2400 Turns lights on & off using a relay timer for energy efficiency. 50% reduction in cost compared to Fully digital. Free remote mechanical programming switching devices Complies with energy code laws.
  • 10. Lighting Control Panel 10 Lighting Control Panel - ROI Calculations Cost Savings Annual Energy Savings w/LC & D - Lighting control only $4,067 LC & D System Cost - Lighting control only $4,200 Construction Materials not Required-Year 1 only $3,250 Reduce Lamp Maintenance (Annual Savings) $750 Reduction in HVAC due to less heat to be extracted (Annual Savings) $407 Total Annual Savings w/LC & D - Year 1 $4,274 Total Annual Savings w/LC & D - Year 2+ $5,224 1 yr savings $4,274 5 year savings $25,168 10 year savings $51,285 Payback-Months 5.95
  • 12. DuctSox Air Distribution Systems 12 Less materials No toxic paint used resulting in emissions from GREEN BUILDING reduced cost to VOC’s (volatile ADVANTAGES produce, organic package, ship, compounds) install & maintain Eliminates environmental Improves air impact at end of distribution and life cycle – no quality sheet metal to dispose of
  • 13. 13 Polished Concrete Floors
  • 14. Polished Concrete Floors 14 Reduces 21% less impact from costly than construction or epoxy floors WHAT MAKES IT demolition GREEN? Alternative to Reduces hazardous heating and components cooling loads Exceptional Releases durability minimal & low pollutants maintenance
  • 15. Signage & LED Lighting 15 Switched to 100,000 hr LED’s ANNUAL ENERGY SAVINGS Per Store = $ 2,223* Total Energy Cost $2,853 $630 LED NEON *Energy modeling study conducted at NFS-Woodburn, OR
  • 16. Nike Grind Floors… 16 From this… To this…
  • 17. 17 To this… Nike’s Reuse-A-Shoe Program is a key component of Nike’s long-term commitment to waste elimination. Nike Grind is the innovative solution in keeping millions of old & tired footwear out of landfills. Since 1993, 19 million pairs of shoes have been recycled.
  • 18. Fitting Rooms 18 Factory fabrication decreases project schedule by 1 week while reducing construction waste & VOC impact.
  • 19. 19 What are the results of our efforts?
  • 20. 20 Donating old fixtures to a local charity NFS – Petaluma, CA
  • 21. NFS – Rio Grande, TX Achieves SILVER LEED Status* 21 44% water savings vs. current NFS average 40% energy savings vs. current NFS average Environmental 120 tons of carbon dioxide emissions Savings Metrics reductions & Performance 29% recycled content materials Measures 100% renewable energy 100% low-VOC materials, coating, adhesives *expected. Info provided by Lonny Knabe, Nike Sustainable Projects Coordinator
  • 22. NFS – Rio Grande, TX Achieves SILVER LEED Status* 22 Operational Efficiency Savings $36,663 (over 5 year lease - 3% energy inflation rate) Certification Costs $31,710 *expected. Info provided by Lonny Knabe, Nike Sustainable Projects Coordinator
  • 23. 23 What MORE can we do?
  • 24. INDOOR SUSTAINABLE WATER ENERGY & MATERIALS & ENVIRONMENTAL SITES EFFICIENCY ATMOSPHERE RESOURCES QUALITY Select LEED Use low VOC Reduce quantity of Use energy Use GC’s familiar emitting materials certified sites water needed efficient HVAC units w/Green Building 20-30% by (where viable) Green clean Recycle all feasible changing to: janitorial program materials Alternative Zero use of CFC Develop & implement Transportation Metal studs to based refrigerants a Construction IAQ which includes: Low Flow toilets contain 65% in HVAC systems Management Plan recycled content a.Rail/Subway/Bus during construction & BOH lighting to access by tenant before occupancy Building reuse- Faucets – use high spec out same as occupants maintain 40-60% efficiency ETS control FOH b.Bicycle Storage & (Environmental sensors/restrictors Encourage Tobacco Smoke) Changing Rooms Develop energy environmentally models for climate responsible forest c.Parking Thermal Comfort HOT WATER regions management Environment & Availability-priority HEATER to be Monitoring before parking for 10-yr lease instant hot. Must At least 50% occupancy that van/carpools use 10% less complies with Green Power usage energy than ASHRAE standards w/2 yr contract allowed. Low “E” Glass