Nike To Trace Leather Supply

Citing a commitment to slow deforestation in Brazil’s Amazon forest, shoe maker Nike, Inc. (NYSE: NKE), said last week that it will require its suppliers to verify that leather does not come from cattle raised in the region.

The Oregon-based company said it was responding to research conducted by environmental group Greenpeace, which identifyied
cattle grazing for meat production and leather as an indirect cause of
Amazon deforestation.

Nike said it has a "high level of certainty" that leather used in its products is not currently sourced within the Amazon basin. But with no traceability system, it said it cannot be 100% certain. 

The company’s new policy requires suppliers to establish a traceability system over the coming year. In addition, Nike signed Greenpeace’s ‘Commit or Cancel’ principles which call for a moratorium on deforestation.

Beyond traceability, Nike also called for the establishment of an enforceable certification system for all industries involved in the Brazilian meat and leather supply chain.

Nike said it will continue to work with the industry’s Leather Working Group, Greenpeace and other stakeholders to address this issue across the supply chain.

Nike said it will require all of its leather suppliers to join the Leather Working Group by December 2009.

In October 2008, Nike announced it plans to expand its sustainably designed line of shoes, called Considered Design.

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