1 Solar Integration Strategy | Hosted and Sponsored by Nike Corporate Headquarters 25 Years of Chapter History 2008 Symposium Facilities Management for the 21 st Century Nike, Inc. Climate Neutrality

2 Solar Integration Strategy | Hosted and Sponsored by Nike Corporate Headquarters 25 Years of Chapter History 2008 Symposium Facilities Management for the 21 st Century Energy + Carbon Energy Footprint Increasing costs Supply shortages Carbon Footprint  Corporate Responsibility  Future cost of carbon Result in coupled but competing goals Energy – reduced operating costs  Carbon – increased operating costs

3 Solar Integration Strategy | Hosted and Sponsored by Nike Corporate Headquarters 25 Years of Chapter History 2008 Symposium Facilities Management for the 21 st Century Energy + Carbon Nike Facilities Pursuing energy efficiency since 1987 (T8s, VFDs, RCx, HP T8) Pursuing carbon reductions since 2001 WWF Agreement Energy Type * Energy Use = Carbon Footprint Carbon factor * kWh = tCO 2

4 Solar Integration Strategy | Hosted and Sponsored by Nike Corporate Headquarters 25 Years of Chapter History 2008 Symposium Facilities Management for the 21 st Century Supply (power plants) Intensity of carbon Centralized vs. distributed Demand (buildings, homes, factories) Amount of energy Centralized vs. distributed

5 Solar Integration Strategy | Hosted and Sponsored by Nike Corporate Headquarters 25 Years of Chapter History 2008 Symposium Facilities Management for the 21 st Century Energy + Carbon

6 Solar Integration Strategy | Hosted and Sponsored by Nike Corporate Headquarters 25 Years of Chapter History 2008 Symposium Facilities Management for the 21 st Century International Energy Agency Energy Technology/Policy Scenarios

7 Solar Integration Strategy | Hosted and Sponsored by Nike Corporate Headquarters 25 Years of Chapter History 2008 Symposium Facilities Management for the 21 st Century Energy + Carbon

8 Solar Integration Strategy | Hosted and Sponsored by Nike Corporate Headquarters 25 Years of Chapter History 2008 Symposium Facilities Management for the 21 st Century Nike’s Total CO 2 Emissions WHERE WE WORK MOVING PEOPLE MAKING PRODUCT (Footwear contracted manufacturing) MAKING PRODUCT Apparel contracted manufacturing MOVING PRODUCT (Logistics to first point of distribution (2005) (2005 baseline) 59% 25% 6% 2% 8% Nike Brand – carbon neutral by 2011 Nike, Inc. – carbon neutral by 2015 Logistics – 30% reduction by 2020 Footwear - tbd

Nike Progress to Date WWF Commitment: Reduce CO 2 13% below 1998 levels by Achieved 18% reduction from energy efficiency and renewable energy credit purchases. Utilize portion of energy cost savings to fund REC purchases.

Energy Portfolio & Sustainable Design Carbon Volume ROI Onsite Renewable Energy Integrated Sustainable Design Renewable Energy Credits Carbon Offsets Energy Efficient Retro-fits Value Matrix: Approaches to Energy Reduction

Carbon Volume RO I Onsite Renewable Energy Integrated Sustainable Design Renewable Energy Credits Carbon Offsets Energy Efficient Retro-fits Value Matrix: Approaches to Energy Reduction Value Matrix: Adoption phases (energy portfolio) 1.Integrate sustainable design into site master plan 2.Integrate sustainable design into building conceptual design 3.Audit all facilities for energy efficiency opportunities 4.Develop energy efficient upgrade/replacement program 5.Purchase RECs or offsets 6.Install onsite renewable energy systems Energy Portfolio & Sustainable Design

Nike Awards + Certifications Carbon Programs (Nike, Inc.): Climate Counts – highest rated company globally Energy Efficiency (Nike WHQ) USGBC LEED-EB Gold (1 building) US EPA EnergyStar (4 buildings) Renewable Energy (Nike WHQ) US EPA Green Power Partnership Leadership Group US EPA Green Power Partnership Top 25 purchaser

Nike Upcoming Projects Sustainable Design Child Development Center (LEED-NC) Houston Factory Store (LEED-CI Portfolio) Northridge Distribution Center (LEED-NC) Carbon Programs: Carbon Neutrality Energy Efficiency: Global Energy Challenge Renewable Energy Child Development Center Sports & Fitness Center

14 Solar Integration Strategy | Hosted and Sponsored by Nike Corporate Headquarters 25 Years of Chapter History 2008 Symposium Facilities Management for the 21 st Century Green power purchases increased from 1% in 2002 to 56% 2007 Onsite: European Distribution Center- –hosts six 1.5 Megawatt wind turbines. (blades = 39 meters) –turbines produce power equal to total Distribution Center electricity usage Photovoltaic panels to supply 10% of electricity to the Portland Airport Factory Store Thin film solar supplies 14% of electricity to new child development center on campus. Hybrid solar electric/thermal system to supply 5% of energy to the Lance Armstrong Sports and Fitness center Grid Based Green Power: European Headquarters purchases 100% renewable power (since 2003) and utilizes ground source heat pumps to heat/cool the facility World Headquarters purchases renewable energy credits equivalent to 100% electricity usage US Based Distribution Centers purchase renewable energy credits equivalent to 100% electricity usage

Nike – Sustainable Portfolio Produces > 100% of electricity consumed by facility Took > 5 years to permit and develop

Payback: Before incentives: 67 years After incentives: 6 years Produces 14% of electricity consumed by facility Part of a LEED-NC certification (submitting 58 points) Utilized local roofing contractor for turn-key solar installation Nike – Sustainable Portfolio

17 Solar Integration Strategy | Hosted and Sponsored by Nike Corporate Headquarters 25 Years of Chapter History 2008 Symposium Facilities Management for the 21 st Century Produces 7% of electricity consumed by facility Produces electricity + hot water System tracks movement of sun to maximize energy production

18 Solar Integration Strategy | Hosted and Sponsored by Nike Corporate Headquarters 25 Years of Chapter History 2008 Symposium Facilities Management for the 21 st Century Innovate for a better world.

19 Solar Integration Strategy | Hosted and Sponsored by Nike Corporate Headquarters 25 Years of Chapter History 2008 Symposium Facilities Management for the 21 st Century Energy + Carbon Building energy use