Norway's Wealth Fund Calls for Nike to Address Human Rights, Sustainability Failures

Norway's wealth fund, a significant Nike shareholder, announced its support for a proposal demanding that Nike consider binding agreements with workers to address human rights issues in high-risk countries. This move comes ahead of Nike’s annual shareholders' meeting and amidst sliding sales and multiple shareholder concerns over supply chain policies and climate targets.

Norway's wealth fund has declared its support for a proposal calling on Nike to explore binding agreements with workers to enhance its ability to tackle human rights issues in high-risk countries. The $1.7 trillion fund, Nike's ninth-largest shareholder, aims to bolster the proposal ahead of the sportswear giant's annual shareholders' meeting next Tuesday.

Adidas and Puma, for example, have already signed legally binding agreements with trade unions, like the Pakistan Accord. However, Nike has advised its investors to vote against the proposal from Domini Impact Equity Fund. The athletics brand, grappling with declining sales, faces investors’ scrutiny on multiple fronts, including supply chain policies and climate targets.

Last year, more than 60 investors, including Domini, urged Nike to resolve a $2.2 million wage dispute involving over 4,000 garment workers in Cambodia and Thailand. The recent pandemic and ensuing factory closures triggered these unpaid wage claims, which Nike has denied. The Norwegian fund, owning 0.92% of Nike shares, criticized the company's handling of sustainability and excessive executive pay. However, it won’t support the Tulipshare proposal on assessing the effectiveness of Nike's supply chain policies.

(With inputs from agencies.)