NIKE RETAIL STORE DEVELOPMENT

Green Building PracticesFebruary 09

“A Convenient Truth”…

…Green on Both Sides – Environmental & Financial

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.

US Retail Store Development has turned our

awareness into action:

Our long-term goal is for sustainability to

become a part of our daily business decisions to

help ensure the health of the natural environment

within our stores for generations to come.

Nike strives to not only bring value to our

business, but to help secure the vitality of the

planet. We are accountable for our financial

profits and are committed to addressing the

environmental impact of our actions.

Foundation

Sustainability

Do the right thing

Assure earth-friendly practices,

reduce carbon footprint

Flawless & Profitable Execution = Premium* Experience

Win at the Moment of Truth: when and where the consumer shops

Strategic Priorities

1. Defined

“global”

standards,

regionally

relevant and

locally executed.

XS, S, M, L, XL

Store, NFS,

Partner and

digital formats.

2. Disciplined

Store/Digital

Site

Development

and

Operations

3. Integrate

planning and

execution

processes end-

to-end as a

“vertical”

retailer

4. Retail-centric

supply chain

flows right

product at the

right time;

place; cost; and

inventory levels

5. Reinforce

consumer-centric

service, language,

and capabilities

to serve the

athlete

Process Excellence

Global process and

technology standards

leveraged to extend

Nike Retail’s reach

People

Create retail excellence

competencies through

diverse, experienced

teams, inspired by

Nike’s innovation and

leadership

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:

17%

30%

14%

19%

14%6%

Total Energy Use

Electricity Consumption

Greenhouse Gas Emissions

Raw Materials Use

Waste Output (136 million tons annually)

Potable Water Consumption

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

4

What is USGBC and LEED® ?

How it Works…LE

ED®-C

I Rating

Syst

em

5

• Sustainable Sites = 7 SS

• Water Efficiency = 2WE

• Energy & Atmosphere = 12 EA

• Materials & Resources = 14 MR

• Indoor Environmental Quality = 17 EQ

• Innovation in Design = 5 ID

• Certified: 21-26

• Silver: 27-31

• Gold: 32-41

• Platinum: 42-57

To achieve LEED-CI certification,

buildings must meet

all prerequisites in the

Rating System

and a minimum of

21 points.

6

What

NIKEdoing?

is

Architectural busSTRUT

7

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

Philips Alto Fluorescent Lamps are

the most energy efficient and

designed to use as few precious resources in

manufacture as possible.

Lower mercury content combined with

fewer lamps used reduces the impact on

the environment.

T5 Lamp rated average life over

25,000 hours w/lumen depreciation at only 5%. Lifecycle

exceeds Halogen lamps by 90% &

Metal Halide lamps by 50%.

8

Lighting Control Panel9

Turns lights on & off using a relay timer for

energy efficiency.

Fully digital.

Complies with

energy code laws.

Free remoteprogramming

50% reduction in

cost compared to

mechanical

switching devices

GR 2400

Lighting Control Panel

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

10

DuctSox Air Distribution Systems

11

DuctSox Air Distribution Systems12

GREE

N B

UIL

DIN

G

AD

VA

NTA

GES

Less materials used resulting in reduced cost to

produce, package, ship,

install & maintain

No toxic paint emissions from VOC’s (volatile

organic compounds)

Eliminates environmental

impact at end of life cycle – no sheet metal to

dispose of

Improves air distribution and

quality

Polished Concrete Floors

13

Polished Concrete Floors14

WH

AT

MA

KES

IT

GREE

N?

21% less costly than

epoxy floors

Reduces impact from

construction or demolition

Reduces heating and cooling loads

Alternative to hazardous components

Releases minimal

pollutants

Exceptional durability

& low maintenance

Signage & LED Lighting 15

LED NEON

$630

$2,853 Total Energy Cost

Switched to 100,000 hr LED’s

ANNUAL ENERGY SAVINGS

Per Store = $ 2,223*

*Energy modeling study conducted at NFS-Woodburn, OR

Nike Grind Floors…

From this…

16

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

results

efforts?

are the

of our

NFS – Petaluma, CAD

ona

ting

old

fix

ture

s

to a

loca

l ch

ari

ty20

NFS – Rio Grande, TX Achieves SILVER LEED Status*

Environmental Savings Metrics

& Performance

Measures

44% water savings vs. current NFS average

40% energy savings vs. current NFS average

120 tons of carbon dioxide emissions reductions

29% recycled content materials

100% renewable energy

100% low-VOC materials, coating, adhesives

21

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

Operational Efficiency Savings

$36,663

(over 5 year lease - 3% energy inflation rate)

Certification Costs

$31,710

22

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

NFS – Rio Grande, TX Achieves SILVER LEED Status*

What

wedo?

MOREcan

23

Select LEED certified sites

Alternative Transportation which includes:

a.Rail/Subway/Bus access by tenant

occupants

b.Bicycle Storage & Changing Rooms

c.ParkingAvailability-priority

parking for van/carpools

Reduce quantity of water needed 20-30% by changing to:

Low Flow toilets

Faucets – use high efficiency

sensors/restrictors

HOT WATER HEATER to be

instant hot. Must use 10% less energy than

allowed.

Use energy efficient HVAC units

(where viable)

Zero use of CFC based refrigerants in HVAC systems

BOH lighting to spec out same as

FOH

Develop energy models for climate

regions

At least 50% Green Power usage

w/2 yr contract

Use GC’s familiar w/Green Building

Recycle all feasible materials

Metal studs to contain 65%

recycled content

Building reuse-maintain 40-60%

Encourage environmentally

responsible forest management

10-yr lease

Use low VOC emitting materials

Green clean janitorial program

Develop & implement a Construction IAQ Management Plan

during construction & before occupancy

ETS control (Environmental

Tobacco Smoke)

Thermal Comfort Environment &

Monitoring before occupancy that complies with

ASHRAE standards

Low “E” Glass

SUSTAINABLE

SITES

WATER

EFFICIENCY

ENERGY &

ATMOSPHERE

MATERIALS &

RESOURCES

INDOOR

ENVIRONMENTAL

QUALITY