Nike Investors Turn Down Climate Transparency Resolution

Nike Inc (NYSE:NKE) shareholders on Tuesday rejected a resolution that would have obligated the athletic apparel giant to disclose further specifics on its climate objectives and strategies for achieving emissions-reduction milestones.

The measure underscored doubts about Nike's dedication to its environmental ambitions amid mounting financial strain, political headwinds in the United States, and worldwide regulatory examination of unsubstantiated sustainability assertions. For decades, Nike has cast itself as a front-runner in corporate climate action.

The Beaverton, Oregon-headquartered firm announced in 2019 that it intended to cut carbon emissions by 65% from its direct operations and 30% across its supply chain by 2030. In its fiscal 2024 business update, Nike reported that supply chain emissions had fallen 11% relative to a 2015 reference point.

Norway's sovereign wealth fund, which LSEG data identifies as Nike's 11th-largest investor, stated earlier this week that it would back the call for enhanced climate disclosure.

Nike's 2024 impact report detailed its use of recycled polyester and rubber and efforts to help supply-chain factories source renewable energy. Last year, the company swapped those climate-program details for a list of emissions and waste metrics.

Nike's board of directors had urged shareholders to oppose the proposal, asserting in a regulatory filing that the company remains dedicated to cutting greenhouse gas emissions and that management is best equipped to decide appropriate reduction targets and accompanying disclosure requirements.

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