Dive Brief:
- Nike announced the opening of a new distribution center that will run on entirely renewable energy and recycle 95% of the waste generated on site, according to a company blog post. The 1.5-million-square-foot center is located in Ham, Belgium, expanding the company's existing European Logistics Campus in the country.
- The facility's location close to a network of canals enables "99% of inbound containers to reach the local container park by water" and eliminates the use of 14,000 truck journeys per year according to Nike's estimation.
- The move comes as the company pushes forward with its goal of achieving zero carbon operations by 2025 and eliminating waste from its supply chain.
Dive Insight:
The distribution center, called the Court, runs on 100% clean energy sourced from five local sources: wind, solar, geothermal, hydroelectric and biomass.
The company has also been working to improve the sustainability of the materials going into their products. Earlier this year, Supply Chain Dive reported Nike ranked in the top five companies, alongside Adidas and Gap, on the Better Cotton Leaderboard. The leaderboard, created by the Better Cotton Initiative, highlights sustainable and ethical cotton sourcing practices. In 2018, Nike and Gap were listed as "fast movers" for sourcing 20% more Better Cotton than in 2017.
In addition to sustainable operations, Nike's new distribution center will expand its logistics capabilities. "Our new Court Distribution Center represents Nike’s continued investment in a fast and flexible supply chain," Eric Sprunk, Nike COO said in a statement, noting the new center will enhance the company's ability to deliver to customers across Africa, Europe and the Middle East.
