Nike shareholders reject climate proposal backed by Norway wealth fund

By Danielle Kaye

NEW YORK, Sept 8 (Reuters) - Nike shareholders have rejected a proposal urging more transparency on its climate goals, including disclosing details on how the sportswear maker intends to reach emissions-reduction targets, the company said on Tuesday.

The shareholder resolution resurfaced questions about the extent to which Nike, which for decades has positioned itself as a climate leader, is prioritizing its environmental targets as it faces financial strain, U.S. political pressure and global regulatory scrutiny of misleading environmental claims.

Oregon-based Nike said in 2019 it aims to reduce its carbon emissions by 65% across its own operations and by 30% across its supply chain by 2030. In a fiscal 2024 update, it said its supply chain emissions had fallen 11% from a 2015 baseline. 

 The company, which has a market capitalization of about $56 billion, did not release shareholder vote tallies.

Norway's wealth fund, Nike's 11th-biggest shareholder according to LSEG data, this week said it would back the push for more transparency.

"It's not that we think Nike is completely dropping the ball here. It's more that we want to know what's really going on," said Giovanna Eichner, shareholder advocate at Green Century Capital Management, which introduced the climate proposal. "It's unclear if there's that same level of commitment toward achieving the goals."

Nike's impact report in 2024 detailed its efforts to use recyclable polyester and rubber and help factories in its supply chain source renewable energy. Last year, details about those climate initiatives were replaced by a list of data points on emissions and waste.

Nike's board urged shareholders to vote against the proposal, arguing in a filing that the company remains committed to reducing greenhouse gas emissions and management is "best positioned to determine the targets and related disclosures that are appropriate."

The athletic footwear maker is grappling with slumping sales, eroded market share and a push by CEO Elliott Hill to reinvigorate product innovation nearly two years into his tenure. Shares have fallen about 40% so far this year.

EXECUTIVE COMPENSATION APPROVED

Shareholders on Tuesday ultimately supported the company's contested proposal to approve executive compensation. Hill's total compensation was more than $36 million for fiscal 2026.

Norway's wealth fund had said it would vote against executives' compensation, arguing that Nike's board "should ensure that all benefits have a clear business rationale." Proxy advisers Glass Lewis and Institutional Shareholder Services had recommended voting against the compensation packages.

A proposal from a group of conservative investors urging Nike to exclude gender-transition surgery for minors in employee health plans also failed to pass. The resolution, part of a broader campaign against employers, added to scrutiny of Nike over its diversity policies.

(Reporting by Danielle Kaye; Editing by Cynthia Osterman)