Sustainable sport agreement
A positive outcome for the planet: Nike and Iberdrola's power purchase agreement
Like any activity, sport suffers the consequences of climate change, such as high temperatures and pollution. With a more sustainable horizon as a goal, Nike and Iberdrola have had an agreement since 2016 for the long-term purchase and sale of clean energy (PPA). The aim is to reduce the sports brand's carbon footprint and demonstrate the role of large companies in the fight against climate change.
The power purchase agreement between Nike and Iberdrola enables the supply of clean energy for the sports brand's production.
Agreement between Nike and Iberdrola
Without the right conditions for sport, athletes cannot compete in a healthy and efficient way. Studies indicate that significant weather variation, pollution and especially climate change are beginning to affect people's ability to play sport.
An obvious example was the holding of the Tokyo Olympics in 2020, where the start times of competitions had to be brought forward to earlier in the day to avoid the extreme heat.
Nike has for years sought renewable energy to reduce its carbon footprint. The sports brand signed its first power purchase agreement (PPA) with Iberdrola for its Oregon facility in 2016. Three years later, the contract was expanded in Europe and Iberdrola will supply clean energy to the sports company with the production of 40 MW from the Cavar wind complex, located in Navarre.
Nike's goal is for 100% of the energy used in its production to come from renewable energies. With the PPA signed in the United States and Europe, Iberdrola brings the sports brand 75% closer to achieving this goal.
Thanks to the agreement with Iberdrola, Nike has reduced its carbon footprint by 368,000 metric tons of carbon, the equivalent of 78,000 cars on the road.
Source: FT