Investor pressure on Nike is escalating as the company’s annual shareholder meeting approaches, with a focus on improving working conditions in its supply chain. Norway’s sovereign wealth fund, one of Nike’s largest shareholders, has backed a resolution urging the company to consider binding agreements with workers at its supplier factories in high-risk countries. This comes amid criticisms of Nike’s labor practices, particularly after the company was accused of failing to pay $2.2 million in severance wages to workers in Cambodia and Thailand during the pandemic—a claim Nike denies.
Investment research firm MSCI has downgraded Nike’s ESG rating, citing its poor labor standards. Investors are frustrated by the company’s lack of response to previous concerns, with some describing Nike’s silence as “astonishing.” The resolution, which could gain significant traction if it garners over 20% of votes, reflects growing shareholder demands for Nike to address human rights risks and strengthen its supply chain practices.
