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Journey to SustainabilityNIKE Factory Stores

February 19, 2013

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…the quality of not being harmful to the environment

or depleting natural resources,

thereby supporting long-term ecological balance

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1971….EARTH DAYUS based non profit

organization,

Keep America Beautiful,

launched its memorable

ad campaign

"People Start Pollution.

People can stop it“

featuring the "Crying Indian”…

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NIKE’S Maxim #8 - Do the Right Thing

Embrace the truth. Be transparent. Seek diversity. Promote sustainability.

These values are a part of who we are. They give each of us a chance to

make a unique contribution to the quality of life for others and to our

business…….Our success depends on it.

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2005 – Our Initial Sustainable Process for NFS

Fabricated Fitting Rooms

DuctSox for HVAC & busSTRUT Lighting System

Polished Concrete Floors Xlerator Hand Dryers Nike Reuse-A-Shoe Mats

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2005 - USGBC’s LEED® Certification System Implemented

US Green Building Council (USGBC) a nonprofit organization of members from

every sector of the building industryunited by a common purpose:

to transform the building marketplace to sustainability

Leadership in Energy & Environmental Designis the nationally accepted

Green Building Rating System developed by the USGBC

LEED® certification is used for certifying the greenest performing buildings in the world

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2006 – FIRST SUCCESS

2008 – WE STUMBLE

Rio Grande, Texas

Houston, Texas

LEED® for Retail: Commercial Interiors Silver

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2010 – Defining the New Game

Corporate Executive Support is mandatory due to inevitable budget, headcount, and schedule timeline alterations.

Identify a Champion as the point person to guide the certification program to success.

Retain LEED® APs with vast experience relative to USGBC’S rigorous documentation requirements.

Substantial Lead Time is vital in identifying project specifics and accomplishing all upfront work.

LESSONS LEARNED – LEED® Certification Process

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Frequent Training is Essential

a b c dJune 2010 LEED® Workshop

Eco-design collaborative SPEC writing charrette held at NIKE WHQ

Mission 2 Commission training seminar held at NFS Opry Mills, TN

25+ NIKE participants achieve USGBC LEED® GA Accreditation

GBS conducts LEED® training workshop at NIKE WHQ

Dec 2010SPEC Writing Charrette

Feb 2012Training Seminar

RESULTS

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certified silver gold platinum

40 – 49credits

50 – 59credits

60 – 79credits

80+ credits

LEED® CI rating system

Choose Certification Level

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2011 - First Nike LEED® for Retail: CI Gold Project

Oklahoma City, OK

KT

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3/21

Partnered with LL to reduce solar heat gain by installing highly reflective roof

Preferred parking for LEV (low emitting vehicle) and fuel efficient vehicles

Centrally located bike racks installed to encourage alternative transportation

8/11

36% water use reduction through use of:

- low flow toilets& fixtures

Savings of an estimated 16,000+ gallons of water/year

31/37

100% wind power purchased through REC’s (renewable energy certificates)

94% of equipment has ENERGY STAR rating

45% lighting energy was reduced by using daylight sensors, mercury-free LED lamps & robust EMS

4/14

88% of construction waste diverted from landfill

28% pre/post consumer recycled content in new building materials & products

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Low/no VOC emitting paints, adhesives, and furniture used

No smoking policy implemented

Increased air quality through added outside air and increased filtration

Lighting and thermal comfort controls for all work stations

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Green housekeeping

Green building education

Optimal green energy performance

LEED® accredited professional utilized on project

SUSTAINABLE SITES

WATEREFFICIENCY

ENERGY & ATMOSPHERE

MATERIALS & RESOURCES

INDOOR ENVIRONMENTAL

QUALITY

INNOVATIONIN DESIGN

NOT SHOWN: Regional Priority: Optimize Energy=1; Construction Waste Mngt=1

Based on stats for Oklahoma City - LEED® for Retail: Commercial Interiors Gold – 68 TOTAL CREDITS

LEED® Gold Certification - Credit Related Achievements

KT

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Initial LEED Costs

14,000 SF Store Cost Cost psf

Architect $13,000 $ 0.93

CPM $ 8,000 $ 0.57

General Contractor $25,000 $ 1.79

LEED $ 4,200 $ 0.30

Consulting FeesCommissioning Fees

$41,700$ 5,000

$ 2.98$ 0.36

Landlord $13,950 $ 1.00

TOTAL LEED COSTS $110,850 $ 7.92

$110,850/

AR $1,438,263

=

8%

KT

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Next Generation LEED Costs

13,400 SF Store Cost Cost psf

Architect $ 3,000 $ 0.22

CPM $ 4,000 $ 0.30

General Contractor $15,000 $ 1.12

LEED $ 4,200 $ 0.30

Consulting FeesCommissioning Fees

$20,000$ 2,500

$ 1.49$ 0.19

Landlord (bike racks) $ 450 $ 0.03

REC Costs $ 450 $ 0.03

TOTAL LEED COSTS $ 49,600 $ 3.69

$49,600/

AR $1,800,030

=

3%

KM

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NIKE benefits with a $15 psf increase in TA

Thus, NIKE is able to provide its own energy efficient components:

Low flow plumbing fixtures

Energy management

systems

High SEER HVAC units

Building materials with recycled content

After extensive collaboration with LL’s, we successfully negotiated a favorable

“cold dark shell” workletter.

Typical Landlord workletter lacked specifications relative to an energy efficient

building.

Landlord Workletter EvolutionWhite Box to Cold Dark Shell = $15 psf

KM

KM

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Little Rock AR

LouisvilleKY OK City OK

Opry Mills Nashville

TN

Des MoinesIA

Merrimack NH

St. Louis MO

Current - NIKE Factory Stores Certified LEED® Gold

Livermore CA*

Meridian ID*

Texas CityTX*

Traverse MtUT*

Westgate AZ*

Henderson NV

*anticipated March, 2013

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Converse

• Livermore, CA•Texas City, TX•Westgate, AZ

Hurley

• Livermore, CA•Texas City, TX

Converse & Hurley Certified LEED® for Retail

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Volume Certification

There is No Finish Line

Examine new ways to enhance Green Building

If not already impletmented, explore volume

certification process

Identify and pursue attainable credits

Remain committed to continuing education

and training

Refine and evolve green practices

frequently