Norway Sovereign Wealth Fund Supports Worker Rights Proposal for Nike's Market Growth

Norway 's sovereign wealth fund , value at .7 trillion , has announce its support for a proposal demand that Nike see binding agreement with worker to address homo right issue in high - hazard state . Nike , the ninth - large stockholder of the fund , is set to vote on this proposal at its approaching annual stockholder meeting , where it is facing pressure from investor on assorted fronts.

The sportswear giant has been urge to better its ability to address homo right issue , especially in comparison to its rival Adidas and Puma , who have already sign legally binding agreement with trade union . Nike has recommend investor vote against the proposal , but the fund belief that the board should return into history the material sustainability hazard facing the company.

In addition to the worker ' right proposal , Nike is also facing pressure from investor on its supply chain policy and climate target . stopping_point year , More than 60 investor , include Domini Impact Equity Fund , name on Nike to wage allegedly unpaid wages to garment worker in Cambodia and Thailand . The fund , which own nearly 1 % of Nike 's share , has been critical of the company 's executive wage and has vote against it every year since 2020.

Despite the pressure , the fund has decide not to support a stockholder proposal by Tulipshare to buttocks the effectiveness of Nike 's supply chain policy in guarantee worker ' right . However , it will support a proposal demand that Nike reassess its sustainability scheme after miss its climate target for 2015 - 2020 . proxy advisory firm Glass Lewis and ISS have also recommend stockholder back this proposal.

Trium Capital , the group behind the proposal to reassess Nike 's sustainability scheme , has express disappointment in the company 's path record and lack of doggedness in meeting its climate target . They have request Nike to print an analysis of its failure to meet these target within a year . With ISS state that Nike miss and repeat many of its target without a clear plan for future oversight , the pressure on Nike to better its sustainability attempt is mounting.

Overall , Nike is facing increase examination from investor , with the Norway wealth fund lead the charge in demand better practice from the sportswear giant . As the stockholder meeting approach , all eyes will be on Nike 's response to these proposal and the potential impact on its future operations and reputation.