New Zealand Celsias

Nike   Inc., the world’s largest seller of athletic footwear and apparel, has set up its own venture-capital arm to focus on alternative energies and more efficient approaches to manufacturing. Nike’s Sustainable Business & Innovation Lab (SB&I)   will invest in emerging green businesses that promote healthy lifestyles.  The company is banking on innovation to help it deal with the economic slump as well as supply constraints.  It also plans to form relationships with government and non-profit agencies.

The Nike Free   , a lightweight running shoe first introduced in 2004, helped boost company sales 18 percent to $6.08 billion last quarter according to Bloomberg News  .  Nike is also seeking new ways to lower expenses as costs for raw materials continue to rise.  Last year, Nike sold soccer uniforms made from recycled polyester   for the World Cup; it already recycles shoes   on a worldwide basis.  The company recently accepted the Detox challenge from Greenpeace  , officially committing to eliminating all hazardous materials across its entire supply chain and from all of its products by 2020.  This move came after Greenpeace released its “Dirty Laundry” report that revealed commercial links between major clothing brands—including Nike, Adidas, and Puma—and suppliers for releasing toxic chemicals into rivers in China.

Nike has declined to say how much money it will spend on its venture arm, but according to its website, the Sustainable Business & Innovation Lab is comprised of approximately 130 people who work closely with sustainability specialists who are linked to other parts of the company including retail, logistics, and information technology.  The head of the team reports directly to Nike’s CEO.  On its website, Nike states that its key strategy for SB&I is to enable the company and its consumers to thrive in a sustainable economy where people, the planet, and profit are in balance.

Nike was a founding member of Business for   Innovative Climate & Energy Policy (BICEP), joining a coalition of companies advocating for the passage of meaningful energy and climate-change legislation.  And last year the company was ranked first among U.S. corporations for the fourth consecutive year byClimate Counts  , a nonprofit founded by yogurt maker, Stonyfield Farm, for its reduced emissions policies and sustainability reporting.