Nike’s old Air shoes reveal flaws in today’s carbon offset market

Nike’s discontinued use of sulfur hexafluoride in shoe soles has resurfaced in the carbon offset market, exposing issues in how offsets are insured against loss from climate impacts.

Ben Elgin reports for Bloomberg.

In short:

• Nike’s old emissions reductions were converted to carbon credits, now used in an offset insurance pool, though they don’t meet today's offset standards.
• The American Carbon Registry (ACR) recently disclosed that Nike credits represent 19% of its buffer pool, which insures other offsets against failure.
• Experts argue Nike’s credits lack "additionality"—the requirement that offsets reflect reductions beyond regulatory obligations.

Key quote:

“Nike is proud of our emissions-reduction efforts and has continued to be at the forefront of industry action.”

— Nike officials

Why this matters:

Nike’s experience underscores the hidden risks of chemical choices in consumer products, particularly their potential for large-scale environmental impact. Recognizing and addressing these risks is essential as more companies work toward sustainability in product design.

Related: Nike cuts sustainability staff despite carbon goals