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Journey to Sustainability
NIKE Factory Stores

                            February 19, 2013
 slide │ 1
…
            the quality of not being harmful to the environment
                      or depleting natural resources,
             thereby supporting long-term ecological balance




slide │ 2
1971….EARTH DAY
                 US based non profit
                    organization,
               Keep America Beautiful,
               launched its memorable
                    ad campaign
               "People Start Pollution.
                  People can stop it“
            featuring the "Crying Indian”…




slide │ 3
slide │ 4
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.




slide │ 5
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

slide │ 6
2005 - USGBC’s LEED® Certification System Implemented




           US Green Building Council (USGBC)           Leadership in Energy & Environmental Design
        a nonprofit organization of members from                 is the nationally accepted
           every sector of the building industry              Green Building Rating System
              united by a common purpose:                         developed by the USGBC

            to transform the building marketplace to    LEED® certification is used for certifying the
                          sustainability                greenest performing buildings in the world




slide │ 7
2006 – FIRST SUCCESS
LEED® for Retail: Commercial Interiors Silver


                                                2008 – WE STUMBLE




                 Rio Grande, Texas


                                                    Houston, Texas

 slide │ 8
slide │ 9
2010 – Defining the New Game



                      LESSONS LEARNED – LEED® Certification Process


     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.




slide │ 10
Frequent Training is Essential



 a                       b                    c                  d
             June 2010       Dec 2010             Feb 2012
             LEED®           SPEC Writing         Training           RESULTS
             Workshop        Charrette            Seminar


     GBS conducts        Eco-design           Mission 2          25+ NIKE
     LEED® training      collaborative SPEC   Commission         participants
     workshop at         writing charrette    training seminar   achieve USGBC
     NIKE WHQ            held at NIKE WHQ     held at NFS Opry   LEED® GA
                                              Mills, TN          Accreditation




slide │ 11
Choose Certification Level


                           LEED® CI rating system




             certified       silver       gold      platinum
             40 – 49        50 – 59     60 – 79       80+
              credits        credits     credits     credits




slide │ 12
2011 - First Nike LEED® for Retail: CI Gold Project




                Oklahoma City, OK


slide │ 13
                                                     KT
LEED® Gold Certification - Credit Related Achievements

                                                                                                         INDOOR
    SUSTAINABLE                     WATER                ENERGY &            MATERIALS &                                            INNOVATION
                                                                                                     ENVIRONMENTAL
       SITES                      EFFICIENCY            ATMOSPHERE           RESOURCES                                               IN DESIGN
                                                                                                         QUALITY




                  Based on stats for Oklahoma City - LEED® for Retail: Commercial Interiors Gold – 68 TOTAL CREDITS
           3/21                        8/11                   31/37                  4/14                       14/17                        6/6

   Partnered with LL to       36% water use           100% wind power        88% of construction        Low/no VOC emitting        Green housekeeping
   reduce solar heat gain     reduction through use   purchased through      waste diverted from        paints, adhesives, and
   by installing highly       of:                     REC’s (renewable       landfill                   furniture used
   reflective roof                                    energy certificates)                                                         Green building
                                 - low flow toilets                                                                                education
                                     & fixtures                              28% pre/post               No smoking policy
   Preferred parking for                              94% of equipment       consumer recycled          implemented
   LEV (low emitting          Savings of an           has ENERGY STAR        content in new                                        Optimal green energy
   vehicle) and fuel          estimated 16,000+       rating                 building materials &                                  performance
   efficient vehicles                                                        products                   Increased air quality
                              gallons of water/year                                                     through added
                                                      45% lighting energy                               outside air and            LEED® accredited
   Centrally located bike                             was reduced by using                              increased filtration       professional utilized
   racks installed to                                 daylight sensors,                                                            on project
   encourage alternative                              mercury-free LED
   transportation                                     lamps & robust EMS                                Lighting and thermal
                                                                                                        comfort controls for all
                                                                                                        work stations

                                                                              NOT SHOWN: Regional Priority: Optimize Energy=1; Construction Waste Mngt=1
slide │ 14
                                                                                                                                             KT
Initial LEED Costs



                               14,000 SF Store      Cost     Cost psf

                             Architect             $13,000   $ 0.93
               $110,850/
                             CPM                   $ 8,000   $ 0.57
             AR $1,438,263
                             General Contractor    $25,000   $ 1.79
                  =

                  8%         LEED                  $ 4,200   $ 0.30

                             Consulting Fees      $41,700    $ 2.98
                             Commissioning Fees   $ 5,000    $ 0.36

                             Landlord              $13,950   $ 1.00

                             TOTAL LEED COSTS     $110,850   $ 7.92


slide │ 15
                                                                        KT
Next Generation LEED Costs



                                13,400 SF Store           Cost    Cost psf
                             Architect                $ 3,000      $ 0.22

                             CPM                      $ 4,000      $ 0.30
               $49,600/
                             General Contractor       $15,000      $ 1.12
             AR $1,800,030
                             LEED                     $ 4,200      $ 0.30
                  =
                             Consulting Fees          $20,000      $ 1.49
                  3%         Commissioning Fees       $ 2,500      $ 0.19

                             Landlord (bike racks)    $     450    $ 0.03

                             REC Costs                $     450    $ 0.03

                             TOTAL LEED COSTS        $ 49,600     $ 3.69


slide │ 16
                                                                             KM
Landlord Workletter Evolution
                                  White Box to Cold Dark Shell = $15 psf


                    Typical Landlord workletter lacked
                specifications relative to an energy efficient
                                   building.




                 After extensive collaboration with LL’s, we
                    successfully negotiated a favorable
                        “cold dark shell” workletter.




               Thus, NIKE is able to provide its own energy
                          efficient components:
             Low flow       Energy                     Building
                                       High SEER
             plumbing    management                 materials with
                                       HVAC units
              fixtures     systems                  recycled content




                NIKE benefits with a $15 psf increase in TA




slide │ 17
                                                                           KM
KM
Current - NIKE Factory Stores Certified LEED® Gold




                                                         Opry Mills
             Little Rock     Louisville                               Des Moines   Merrimack         St. Louis
                                           OK City OK    Nashville
                  AR           KY                                         IA         NH                MO
                                                            TN




                                                                Traverse
                      Livermore       Meridian   Texas City                 Westgate    Henderson
                                                                   Mt
                         CA*            ID*         TX*                      AZ*           NV
                                                                  UT*




slide │ 19                                                                                     *anticipated March, 2013
Converse & Hurley
             Certified LEED® for Retail



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


                        Hurley
                        • Livermore, CA
                        • Texas City, TX




slide │ 20
Volume Certification




slide │ 21
There is No Finish Line



   Identify and pursue                                      Refine and evolve
     attainable credits                                       green practices
                                                                    frequently




   If not already                                      Remain committed to
  impletmented,                                        continuing education
  explore volume               Examine new ways to              and training
certification process         enhance Green Building
Journey to Sustainability

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Journey to Sustainability

  • 1. Journey to Sustainability NIKE Factory Stores February 19, 2013 slide │ 1
  • 2. the quality of not being harmful to the environment or depleting natural resources, thereby supporting long-term ecological balance slide │ 2
  • 3. 1971….EARTH DAY US based non profit organization, Keep America Beautiful, launched its memorable ad campaign "People Start Pollution. People can stop it“ featuring the "Crying Indian”… slide │ 3
  • 5. 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. slide │ 5
  • 6. 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 slide │ 6
  • 7. 2005 - USGBC’s LEED® Certification System Implemented US Green Building Council (USGBC) Leadership in Energy & Environmental Design a nonprofit organization of members from is the nationally accepted every sector of the building industry Green Building Rating System united by a common purpose: developed by the USGBC to transform the building marketplace to LEED® certification is used for certifying the sustainability greenest performing buildings in the world slide │ 7
  • 8. 2006 – FIRST SUCCESS LEED® for Retail: Commercial Interiors Silver 2008 – WE STUMBLE Rio Grande, Texas Houston, Texas slide │ 8
  • 10. 2010 – Defining the New Game LESSONS LEARNED – LEED® Certification Process 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. slide │ 10
  • 11. Frequent Training is Essential a b c d June 2010 Dec 2010 Feb 2012 LEED® SPEC Writing Training RESULTS Workshop Charrette Seminar GBS conducts Eco-design Mission 2 25+ NIKE LEED® training collaborative SPEC Commission participants workshop at writing charrette training seminar achieve USGBC NIKE WHQ held at NIKE WHQ held at NFS Opry LEED® GA Mills, TN Accreditation slide │ 11
  • 12. Choose Certification Level LEED® CI rating system certified silver gold platinum 40 – 49 50 – 59 60 – 79 80+ credits credits credits credits slide │ 12
  • 13. 2011 - First Nike LEED® for Retail: CI Gold Project Oklahoma City, OK slide │ 13 KT
  • 14. LEED® Gold Certification - Credit Related Achievements INDOOR SUSTAINABLE WATER ENERGY & MATERIALS & INNOVATION ENVIRONMENTAL SITES EFFICIENCY ATMOSPHERE RESOURCES IN DESIGN QUALITY Based on stats for Oklahoma City - LEED® for Retail: Commercial Interiors Gold – 68 TOTAL CREDITS 3/21 8/11 31/37 4/14 14/17 6/6 Partnered with LL to 36% water use 100% wind power 88% of construction Low/no VOC emitting Green housekeeping reduce solar heat gain reduction through use purchased through waste diverted from paints, adhesives, and by installing highly of: REC’s (renewable landfill furniture used reflective roof energy certificates) Green building - low flow toilets education & fixtures 28% pre/post No smoking policy Preferred parking for 94% of equipment consumer recycled implemented LEV (low emitting Savings of an has ENERGY STAR content in new Optimal green energy vehicle) and fuel estimated 16,000+ rating building materials & performance efficient vehicles products Increased air quality gallons of water/year through added 45% lighting energy outside air and LEED® accredited Centrally located bike was reduced by using increased filtration professional utilized racks installed to daylight sensors, on project encourage alternative mercury-free LED transportation lamps & robust EMS Lighting and thermal comfort controls for all work stations NOT SHOWN: Regional Priority: Optimize Energy=1; Construction Waste Mngt=1 slide │ 14 KT
  • 15. Initial LEED Costs 14,000 SF Store Cost Cost psf Architect $13,000 $ 0.93 $110,850/ CPM $ 8,000 $ 0.57 AR $1,438,263 General Contractor $25,000 $ 1.79 = 8% LEED $ 4,200 $ 0.30 Consulting Fees $41,700 $ 2.98 Commissioning Fees $ 5,000 $ 0.36 Landlord $13,950 $ 1.00 TOTAL LEED COSTS $110,850 $ 7.92 slide │ 15 KT
  • 16. Next Generation LEED Costs 13,400 SF Store Cost Cost psf Architect $ 3,000 $ 0.22 CPM $ 4,000 $ 0.30 $49,600/ General Contractor $15,000 $ 1.12 AR $1,800,030 LEED $ 4,200 $ 0.30 = Consulting Fees $20,000 $ 1.49 3% Commissioning Fees $ 2,500 $ 0.19 Landlord (bike racks) $ 450 $ 0.03 REC Costs $ 450 $ 0.03 TOTAL LEED COSTS $ 49,600 $ 3.69 slide │ 16 KM
  • 17. Landlord Workletter Evolution White Box to Cold Dark Shell = $15 psf Typical Landlord workletter lacked specifications relative to an energy efficient building. After extensive collaboration with LL’s, we successfully negotiated a favorable “cold dark shell” workletter. Thus, NIKE is able to provide its own energy efficient components: Low flow Energy Building High SEER plumbing management materials with HVAC units fixtures systems recycled content NIKE benefits with a $15 psf increase in TA slide │ 17 KM
  • 18. KM
  • 19. Current - NIKE Factory Stores Certified LEED® Gold Opry Mills Little Rock Louisville Des Moines Merrimack St. Louis OK City OK Nashville AR KY IA NH MO TN Traverse Livermore Meridian Texas City Westgate Henderson Mt CA* ID* TX* AZ* NV UT* slide │ 19 *anticipated March, 2013
  • 20. Converse & Hurley Certified LEED® for Retail Converse • Livermore, CA • Texas City, TX • Westgate, AZ Hurley • Livermore, CA • Texas City, TX slide │ 20
  • 22. There is No Finish Line Identify and pursue Refine and evolve attainable credits green practices frequently If not already Remain committed to impletmented, continuing education explore volume Examine new ways to and training certification process enhance Green Building