Nike shareholders reject climate proposal backed by Norway wealth fund

• Norway's $1.8 trillion wealth fund, Nike's 11th-largest shareholder, supported the climate reporting proposal seeking more transparency on Nike's emissions reduction strategy beyond basic data points
• Nike has pledged to cut carbon emissions 65% in operations and 30% in supply chain by 2030; supply chain emissions fell only 11% from 2015 baseline as of fiscal 2024
• A separate conservative investor proposal to exclude gender-transition surgery for minors from employee health plans also failed, adding to broader corporate diversity policy debates

Summary: Nike Shareholders Reject Climate Proposal Backed by Norway Wealth Fund

Nike shareholders voted down a climate disclosure proposal at their September 8 meeting, despite backing from Norway's sovereign wealth fund, the company's 11th-largest shareholder. The proposal sought enhanced reporting on Nike's climate transition plans and associated risks.

Key Climate Commitments:

Nike announced in 2019 targets to reduce carbon emissions by 65% in its own operations and 30% across its supply chain by 2030. As of fiscal 2024, supply chain emissions had declined 11% from a 2015 baseline. However, the company has scaled back detailed climate reporting, replacing comprehensive initiatives in its 2024 impact report with basic data points on emissions and waste.

Shareholder Votes:

• Climate disclosure proposal: Rejected
• Executive compensation: Approved, despite opposition from Norway's wealth fund and proxy advisers Glass Lewis and ISS
• Conservative proposal to exclude gender-transition surgery for minors from employee health plans: Failed

Market Context:

Nike, with a market capitalization of approximately $56 billion, faces significant business headwinds including declining sales, eroded market share, and an ongoing turnaround effort. The Oregon-based sportswear giant is under pressure from both financial performance challenges and stakeholder scrutiny over governance issues.

Norway's wealth fund expressed concerns not about Nike "dropping the ball" entirely but wanting greater transparency on climate progress. The voting outcome suggests shareholders prioritized management's discretion over enhanced climate disclosure requirements despite institutional investor pressure for greater accountability.