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Green Building Pratices

In: Business and Management

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NIKE RETAIL STORE DEVELOPMENT

February 09

Green Building Practices

“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

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

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.

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 endto-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

Foundation
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

Sustainability

Do the right thing
Assure earth-friendly practices, reduce carbon footprint

…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
14%
6%

17%

Electricity Consumption
Greenhouse Gas Emissions
30%

19%
14%

Raw Materials Use

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

LEED®-CI Rating System

To achieve LEED-CI certification, buildings must meet all prerequisites in the Rating System and a minimum of 21 points.

• • • •

Certified: Silver: Gold: Platinum:

21-26 27-31 32-41 42-57

SS WE EA MR EQ

• Sustainable Sites = 7 • Water Efficiency = 2 • Energy & Atmosphere = 12 • Materials & Resources = 14 • 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 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%.

Lighting Control Panel
9

GR 2400

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

Free remote programming

50% reduction in cost compared to mechanical switching devices

Fully digital.

Complies with energy code laws.

Lighting Control Panel
10

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

1 yr savings
5 year savings 10 year savings Payback-Months

$4,274
$25,168 $51,285 5.95

DuctSox Air Distribution Systems
11

DuctSox Air Distribution Systems
12

GREEN BUILDING ADVANTAGES

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

13

Polished Concrete Floors

Polished Concrete Floors
14

WHAT MAKES IT GREEN?

21% less costly than epoxy floors

Reduces impact from construction or demolition

Alternative to hazardous components

Reduces heating and cooling loads

Releases minimal pollutants

Exceptional durability & low maintenance

Signage & LED Lighting
15

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

Total Energy Cost
$630

$2,853

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

NFS – Petaluma, CA

Donating old fixtures to a local charity

NFS – Rio Grande, TX Achieves SILVER LEED Status*
21

44% water savings vs. current NFS average 40% energy savings vs. current NFS average

Environmental Savings Metrics & Performance Measures

120 tons of carbon dioxide emissions reductions

29% recycled content materials

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?

SUSTAINABLE SITES

WATER EFFICIENCY

ENERGY & ATMOSPHERE

MATERIALS & RESOURCES

INDOOR ENVIRONMENTAL QUALITY

Select LEED certified sites Alternative Transportation which includes: a.Rail/Subway/Bus access by tenant occupants b.Bicycle Storage & Changing Rooms c.Parking Availability-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 reusemaintain 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

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