Environmental, Social, and Governance (ESG): Nike, Adidas, and SasSports

Nike, Adidas, and SasSports ESG Profile Paper
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Nike, Adidas, and SasSports ESG Profile Paper
The Responsible Investment (RI) field is on the brink of a new era. Although investment professionals and capital markets initially viewed it as an exotic niche, it is now the standard practice. Taking Environmental, Social, and Governance (ESG) variables into consideration in investment decisions is a widely embraced practice. More specifically, ESG is a term employed to delineate different investing techniques that encourage environmental, social, and governance factors in addition to risk and return. Accordingly, ESG ratings measure an entity’s exposure to financially feasible ESG risks in the long term to ensure investors authentically implement their preferred ESG investment strategy. The relevance of extra-financial factors does not decisively persuade the contemporary-generation financial analyst. Still, it has become an inherent aspect of what investors look for when making investment decisions. Although capital markets are laggards in this respect, it is well-established now that ESG integration creates value for companies seeking sustainability ends. This paper details the implementation of the ESG framework in Nike, Adidas, and SusSports. The paper's final portion details the financial relevance of the ESG framework to SusSports.
Nike ESG Profile
Nike is the biggest athletic apparel and footwear brand globally, with a market capitalization above $200 billion in fiscal year 2020. Headquartered in Beaverton, Oregon, Nike employs more than 74,000 workers globally, and its products can be found in over 190 countries. Key product categories include running, soccer, and basketball. Approximately two-thirds of its sales emanate from footwear. Its brands include Converse (causal footwear), Jordan, and Nike. The company sells its products globally via enterprise-owned stores, third-party retail outlets, and franchised stores. Nike’s mission is “to bring inspiration and innovation to every athlete* in the world” (The Impact Investor, 2023). The company demonstrates an authentic commitment to sustainable business practices and has set ambitious objectives to mitigate environmental implications. It also emphasizes reducing emissions, water usage, and waste