Norway's Wealth Fund Challenges Nike on Human Rights

Norway's wealth fund will support a proposal urging Nike to examine binding worker agreements to address human rights issues in high-risk countries. Last year, investors demanded Nike pay $2.2 million in allegedly unpaid wages to workers in Cambodia and Thailand. The fund is Nike's ninth-biggest shareholder.

Norway's wealth fund has announced its support for a proposal requesting Nike to consider binding agreements with workers to better address human rights issues in high-risk sourcing countries. This move comes after more than 60 investors urged Nike to pay $2.2 million allegedly owed to over 4,000 garment workers in Cambodia and Thailand, who lost wages due to COVID-19 factory shutdowns. Nike has denied these allegations.

According to voting intentions released ahead of Nike's annual shareholders' meeting on Sept. 10, the Norwegian fund - which owns a 0.92% stake in Nike worth around $1.05 billion - will back the shareholder proposal despite Nike management's guidance against it.

The fund is also set to vote in favor of a proposal demanding Nike reassess its sustainability strategy after missing its own environmental targets. However, it will not support a proposal asking Nike to evaluate the effectiveness of its supply chain policies in ensuring workers' rights, in line with Nike management's stance.

(With inputs from agencies.)