SUBSCRIBE TO NEWSLETTER
Stay in the loop! Subscribe to our newsletter and gain access to exclusive insights, trends, and news from the world of business and leadership. Don’t miss out!
Norway’s Nordway’s $1.7 trillion wealth fund has endorsed a shareholder proposal urging Nike to evaluate whether binding agreements with workers could enhance its ability to address human rights concerns in high-risk sourcing countries.
This proposal, supported by Nike’s ninth-largest shareholder, seeks to address perceived gaps in Nike’sNike’s approach compared to peers like Adidas and Puma, which have committed to legally binding agreements with trade unions, such as the Pakistan Accord.
Support for Human Rights Proposal:
The proposal, put forward by the Domini Impact Equity Fund, comes amid criticisms that Nike has lagged behind its competitors in addressing human rights issues. Shareholders are set to vote on the proposal at Nike’s annual meeting on September 10.
Norway’s wealth fund, which owns approximately 0.92% of Nike’sNike’s shares, worth around $1.05 billion, has voiced its support for this initiative. The fund emphasizes the need for Nike to address material sustainability risks and its operations’ broader environmental and social impacts.
Disagreement on Additional Proposal:
While backing the human rights proposal, Norway’sNorway’s wealth fund has chosen not to support a second proposal from Tulipshare. This proposal seeks an assessment of Nike’s supply chain policies’ effectiveness in protecting workers’ rights. This proposal, a repeat of a prior one that received 11.7% of votes last year, will not receive the fund’sfund’s endorsement.
Focus on Sustainability Targets:
In addition to the human rights proposal, Norway’s wealth fund will support a proposal demanding Nike reassess its sustainability strategy. Trium Capital’s proposal calls for Nike to analyze and report within a year on its failure to meet its climate targets for 2015-2020.
Trium Capital criticized Nike for its “track record and lack of perseverance” in meeting its self-imposed targets. Proxy advisory firms Glass Lewis and ISS support this proposal, noting Nike’s numerous missed and restated targets without adequate future oversight plans.
